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ARM’s ICMM Performance Expectations Self-assessment for the year ending 30 June 2023

Overview

In 2020, the ICMM launched enhanced membership requirements that further strengthen members’ social and environmental requirements, underpinned by the 38 performance expectations (PEs). These support progress towards the global targets of the United Nations Sustainable Development Goals (UN SDGs) and the Paris Agreement on climate change. The enhanced requirements include robust asset and corporate-level validation, credible assurance, and transparent disclosure to maximise the industry’s benefits to host communities and minimise negative impacts to effectively manage issues of concern to society.

Process

All assets subject to PE validation are required to conduct self-assessments once every three years and third-party validation of prioritised assets within a three-year validation cycle. By September 2022, members were required to complete self-assessments for all assets and prioritise assets for validation in the first three-year cycle. ARM started piloting self-assessments of PEs in F2019 and self-assessments for all the assets were completed by the September 2022 deadline.

Prioritisation

ARM’s prioritisation of assets selected for PE validation aligns with the ESG report assurance process, with operations selected for external assurance visits in a given year also prioritised for PE validation. In F2023, independent third-party validation of the asset self-assessments was carried out at the Modikwa and Khumani mines. All assets will be subject to external PE validation over a three-year cycle. Gaps in alignment with the PEs identified in these processes are being addressed.

FOR THE YEAR ENDING 30 JUNE 2023

ARM’S ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT

Our business

African Rainbow Minerals (ARM) is a leading South African diversified mining and minerals company with

operations in South Africa and Malaysia. ARM mines and beneficiates iron ore, manganese ore, chrome ore, platinum group

metals (PGMs), nickel and coal. It also produces manganese alloys and has a strategic investment in gold through Harmony Gold Mining

Company Limited.

4

Harmony

Gold

PGMs

Iron ore

20%

Coal

41.5% Modikwa1


50% Khumani

Participative Coal

51%

54% Two Rivers

50% Beeshoek

Business (PCB)5


100% Bokoni2

Nickel, PGMs

Manganese

Coal

ore

Goedgevonden

and chrome

50% Nchwaning

(GGV)5


50% Nkomati3


50% Gloria

Manganese

alloys

50% Cato Ridge Works

25% Cato Ridge Alloys

27% Sakura


  1. ARM’s effective interest in Modikwa Mine is 41.5%, local communities hold an effective 8.5% interest.

  2. The acquisition of Bokoni Mine became effective on 1 September 2022. Qualifying employees, host communities and black industrialists will be allocated 15% in Bokoni Mine, with each group owning 5%.

  3. Nkomati Mine is on care and maintenance.

  4. ARM owns Machadodorp Works which is currently being used to develop more     cost-effective and energy-efficient ways of smelting.
  5. ARM’s effective interest in GGV Mine is 26% and 20.2% in PCB.

ARM’S ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT FOR THE YEAR ENDING 30 JUNE 2023

ARM’s ICMM Performance Expectations

Self-assessment for the year ending 30 June 2023 continued

Sites that went through

Self-assessed sites

external verification

Cato

Two Rivers

Modikwa

Beeshoek

Black Rock

Ridge

Machadodorp

Platinum

Nkomati

Khumani

Platinum

ICMM’s Mining Principles

Mine

Mine

Works

Works

Mine

Mine

Corporate

Mine

Mine

Comments

PRINCIPLE 1: Apply ethical business practices and sound systems of corporate governance and transparency to support sustainable development

Documents and publications

ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT THE YEAR ENDING 30 JUNE 2023

1.1: Establish systems

Corporate

to maintain

and Asset

compliance with

level

applicable law

1.2: Implement policies

Corporate

and practices

and Asset

to prevent bribery

level

and corruption, and

to publicly disclose

facilitation payments

1.3: Implement policies

Corporate

and standards

level

consistent with the

ICMM policy

framework

The Compliance Executive reviews current compliance systems. A legal

compliance landscape review is facilitated by an external service

provider annually. SHE compliance reviews are conducted

by Corporate on assets on a quarterly basis. Results of compliance are

reported to the social and ethics committee (SEC) and management

risk committee which reports to the audit and risk committee

on a quarterly basis. Each divisional chief executive submits

a compliance certificate to the CEO and SEC quarterly.

The ARM Code of Conduct is in place that contains anti-bribery and

2023 ESG Report

corruption measures. Procedures on theft-fraud-defalcation and

page 34,148

misappropriation of company property, cash and services have been

ESG

rolled out company-wide and related online etraining is conducted

annually. This also covers appropriate joint venture (JV) partners. ARM’s

anonymous whistleblowers’ hotline (0800 006792) is operated by an

independent service provider that has been certified by the Ethics

Institute, and includes a ‘Please Call Me’ option. Details about the

hotline are included in the Code and are posted at the company’s

offices and operations. The hotline is available to employees,

contractors, suppliers, communities, and other stakeholders to report

unethical behaviour. Incidents reported through the whistleblower

facility are investigated and progress and actions taken are reported

at the quarterly SEC meetings. Feedback is also provided to the

whistleblowers’ facility, who engage with the whistleblower to update

them regarding the investigation.

The SEC charter terms of reference, which is a board instrument,

commits to implement the ICMM policy framework, which is supported

by a number of policies and standards, including among others the

Group SHE Policy, Group Human Rights Policy, Group Code

of Conduct, Water Stewardship Policy, Climate Change Policy, Wellness,

HIV and AIDS Policy, Tailings Storage Facilities (TSF) Management

Policy and TSF Management Standard. This commitment is reaffirmed

in each year’s ESG Report and IAR, specifically in the chairman’s

review section.

ARM’S ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT FOR THE YEAR ENDING 30 JUNE 2023

Meets

Does not meet

Partially meets

N/A

ARM’s ICMM Performance Expectations

Self-assessment for the year ending 30 June 2023 continued

Sites that went through

Self-assessed sites

external verification

Cato

Two Rivers

Modikwa

Beeshoek

Black Rock

Ridge

Machadodorp

Platinum

Nkomati

Khumani

Platinum

ICMM’s Mining Principles

Mine

Mine

Works

Works

Mine

Mine

Corporate

Mine

Mine

Comments

Documents and publications

PRINCIPLE 1: Apply ethical business practices and sound systems of corporate governance and transparency to support sustainable development continued

ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT THE YEAR ENDING 30 JUNE 2023

1.4: Assign accountability

Corporate

for sustainability

level

performance at the

board and/or

executive committee

level

1.5: Disclose the value

Corporate

and beneficiaries

level

of financial and

in-kind political

contributions whether

directly or through

an intermediary

The ultimate responsibility for monitoring the effective management

2023 ESG Report

of sustainable development lies with the ARM board. The board

ESG

delegates this responsibility to the ARM SEC. The purpose of this

committee is to monitor and report on the manner and extent to which

ARM protects, enhances and invests in the economy, society and

natural environment in which it operates to ensure its business

practices are sustainable. The executive: sustainable development

operates with oversight from the SEC, and reviews sustainability

policies, standards, strategies and targets and ensures these align with

the board’s commitment to zero tolerance for harm. The executive:

sustainable development provides input into the management risk and

compliance committee on matters related to sustainable development

as a standard agenda item. The executive: sustainable development

participates in SEC meetings and is a member of the management risk

and compliance committee and the ARM steering committee and also

attends board meetings to respond to any sustainable development-

related matters raised by the board. The terms of reference for the

board and its committees, as well as those of divisional and operational

committees, are regularly reviewed and updated to ensure that they

continue to appropriately address industry and regulatory

developments. The Assmang social and ethics committee monitors

sustainability performance in the ferrous division and is chaired by the

ARM executive: investor relations and new business development.

Quarterly compliance meetings at the ARM Ferrous operations ensure

comprehensive reporting is covered at the operational level. The

operations in the ARM Platinum division each have standalone

sustainable development committees chaired by the ARM executive:

sustainable development. These committees report to exco or board

of the respective joint ventures, as appropriate. The Assmang social

and ethics committee and the sustainable development committees

in the ARM Platinum division report regarding operational performance

and compliance to the ARM SEC at quarterly meetings.

The value of political donations is disclosed in the GRI Table

2023 ARM GRI index

https://www.arm-ir-

reports.co.za/reports/

arm-iar-2022/pdf/

ARM-GRI-2022.pdf

ARM’S ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT FOR THE YEAR ENDING 30 JUNE 2023

Meets

Does not meet

Partially meets

N/A

ARM’s ICMM Performance Expectations

Self-assessment for the year ending 30 June 2023 continued

Sites that went through

Self-assessed sites

external verification

Cato

Two Rivers

Modikwa

Beeshoek

Black Rock

Ridge

Machadodorp

Platinum

Nkomati

Khumani

Platinum

ICMM’s Mining Principles

Mine

Mine

Works

Works

Mine

Mine

Corporate

Mine

Mine

Comments

PRINCIPLE 2: Integrate sustainable development in company strategy and decision making processes

Documents and publications

2.1: Integrate sustainable

Corporate

development

level

principles into

corporate strategy

and decision making

processes relating

to investments and

in the design,

operation and closure

of facilities

2.2: Support the adoption

Corporate

of responsible health

and Asset

and safety,

level

environmental,

human rights and

labour policies and

practices by joint

venture partners,

suppliers and

contractors, based

on risk

ARM’s sustainable development model applies (refer to F2023 ESG

2023 ESG Report,

Report, page 32). Asset-level implementation through management

page 32

systems.

ESG

ARM expects its suppliers and contractors to behave ethically and with respect for human rights through the Code of Conduct that suppliers have to sign up to in contracts. Supplier contracts address sustainability issues as far as is practical through the asset-level EHS management systems. The ARM SHE Policy and the ARM Human Rights Policy also addresses these aspects for suppliers and contractors.

ARM’S ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT FOR THE YEAR ENDING 30 JUNE 2023

Meets

Does not meet

Partially meets

N/A

ARM’S ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT FOR THE YEAR ENDING 30 JUNE 2023

ARM’s ICMM Performance Expectations Self-assessment for the year ending 30 June 2023 continued

Sites that went through

Self-assessed sites

external verification

Cato

Two Rivers

Modikwa

Beeshoek

Black Rock

Ridge

Machadodorp

Platinum

Nkomati

Khumani

Platinum

ICMM’s Mining Principles

Mine

Mine

Works

Works

Mine

Mine

Corporate

Mine

Mine

Comments

PRINCIPLE 3: Respect human rights and the interests, cultures, customs and values of employees and communities affected by our activities

Documents and publications

ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT THE YEAR ENDING 30 JUNE 2023

3.1: Support the

Corporate

UN Guiding

and Asset

Principles

level

on Business and

Human Rights

by developing

a policy commitment

to respect human

rights, undertaking

human rights due

diligence and

providing for

or cooperating

in processes

to enable the

remediation

of adverse human

rights impacts that

members have

caused

or contributed to

3.2: Avoid the involuntary

Asset level

physical or economic

displacement

of families and

communities. Where

this is not possible,

apply the mitigation

hierarchy and

implement actions

or remedies that

address residual

adverse effects

to restore or improve

livelihoods and

standards of living

of displaced people

3.3: Implement, based

Asset level

on risk, a human

rights and security

approach consistent

with the Voluntary

Principles on Security

and Human Rights

ARM has a Human Rights Policy, where the approach to promoting and protecting human rights aligns with South Africa’s human rights legislation, including the Constitution and the Bill of Rights, which safeguard basic human rights. We are committed to the 10 principles of the United Nations Global Compact (UNCG) and conduct human rights assessments aligned with the United Nations’ Protect, Respect and Remedy Framework. Human rights principles are integrated into business policies and management systems to ensure that human rights are appropriately managed and addressed. The fundamental concepts underlying these rights inform the Code as well as ARM’s Grievance Procedure, Protected Disclosure and Sexual Harassment policies. The Code emphasises the company’s strong stance against unfair discrimination and, together with the Employment Equity Policy and ARM’s human resources management policies, promotes equality and the elimination of unfair discrimination on the basis of race, ethnicity, colour, gender, sexual orientation, nationality, place of origin, citizenship, creed, political persuasion, age, marital or family status or disability. ARM is committed to fair, responsible and competitive remuneration and all non-management employees are afforded freedom of association. We do not use forced, compulsory or child labour. Security personnel, including contractors, receive human rights training as well as regular refresher training. Operational community relations strategies uphold and promote human rights and respect cultural considerations and heritage. Employees who feel that their human rights have been violated can report their grievances anonymously through the whistleblower facility, directly to their supervisors or managers, or to the human resources department. We expect our suppliers and contractors

to behave ethically and with respect for human rights.

ARM’S ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT FOR THE YEAR ENDING 30 JUNE 2023

Meets

Does not meet

Partially meets

N/A

ARM’s ICMM Performance Expectations Self-assessment for the year ending 30 June 2023 continued

Sites that went through

Self-assessed sites

external verification

Cato

Two Rivers

Modikwa

Beeshoek

Black Rock

Ridge

Machadodorp

Platinum

Nkomati

Khumani

Platinum

ICMM’s Mining Principles

Mine

Mine

Works

Works

Mine

Mine

Corporate

Mine

Mine

Comments

PRINCIPLE 3: Respect human rights and the interests, cultures, customs and values of employees and communities affected by our activities continued

Documents and publications

ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT THE YEAR ENDING 30 JUNE 2023

3.4: Respect the rights

Corporate

of workers by: not

and Asset

employing child

level

or forced labour;

avoiding human

trafficking; not

assigning hazardous/

dangerous work

to those under 18;

eliminating

harassment and

discrimination;

respecting freedom

of association and

collective bargaining;

and providing

a mechanism

to address workers

grievances

3.5: Remunerate

Corporate

employees

and Asset

with wages that equal

level

or exceed legal

requirements

or represent

a competitive wage

within that job market

(whichever is higher)

and assign regular

and overtime working

hours within legally

required limits

ARM has a Human Rights Policy, where the approach to promoting and protecting human rights aligns with South Africa’s human rights legislation, including the Constitution and the Bill of Rights, which safeguard basic human rights. We are committed to the 10 principles of the UNGC and conduct human rights assessments aligned with the United Nations’ Protect, Respect and Remedy Framework. Human rights principles are integrated into business policies and management systems to ensure that human rights are appropriately managed and addressed. The fundamental concepts underlying these rights inform the Code as well as ARM’s Grievance Procedure, Protected Disclosure and Sexual Harassment policies. The Code emphasises the company’s strong stance against unfair discrimination and, together with the Employment Equity Policy and ARM’s human resources management policies, promotes equality and the elimination of unfair discrimination on the basis of race, ethnicity, colour, gender, sexual orientation, nationality, place of origin, citizenship, creed, political persuasion, age, marital or family status or disability. ARM is committed to fair, responsible and competitive remuneration and all non-management employees are afforded freedom of association. We do not use forced, compulsory

or child labour. Security personnel, including contractors, receive human rights training as well as regular refresher training. Operational community relations strategies uphold and promote human rights and respect cultural considerations and heritage. Employees who feel that their human rights have been violated can report their grievances anonymously through the whistleblower facility, directly to their supervisors or managers, or to the human resources department.

We expect our suppliers and contractors to behave ethically and with respect for human rights.

The assets that self-assessed themselves as partially meeting the performance expectations follow ARM policies and standards, but areas of improvement have been identified and the assets are addressing the identified gaps.

ARM’S ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT FOR THE YEAR ENDING 30 JUNE 2023

Meets

Does not meet

Partially meets

N/A

ARM’s ICMM Performance Expectations Self-assessment for the year ending 30 June 2023 continued

Sites that went through

Self-assessed sites

external verification

Cato

Two Rivers

Modikwa

Beeshoek

Black Rock

Ridge

Machadodorp

Platinum

Nkomati

Khumani

Platinum

ICMM’s Mining Principles

Mine

Mine

Works

Works

Mine

Mine

Corporate

Mine

Mine

Comments

PRINCIPLE 3: Respect human rights and the interests, cultures, customs and values of employees and communities affected by our activities continued

Documents and publications

ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT THE YEAR ENDING 30 JUNE 2023

3.6: Respect the rights,

Asset level

interests, aspirations,

culture and natural

resource-based

livelihoods

of Indigenous

Peoples in project

design, development

and operation; apply

the mitigation

hierarchy to address

adverse impacts; and

deliver sustainable

benefits for

Indigenous Peoples

3.7: Work to obtain the

Asset level

free, prior and

informed consent

of Indigenous

Peoples where

significant adverse

impacts are likely

to occur, as a result

of relocation,

disturbance of lands

and territories or of

critical cultural

heritage, and capture

the outcomes

of engagement and

consent processes

in agreements

3.8: Implement policies

Corporate

and practices

and Asset

to respect the rights

level

and interests

of women and

support diversity

in the workplace

ARM has a Human Rights Policy, where the approach to promoting and protecting human rights aligns with South Africa’s human rights legislation, including the Constitution and the Bill of Rights, which safeguard basic human rights. We are committed to the 10 principles of the UNGC and conduct human rights assessments aligned with the United Nations’ Protect, Respect and Remedy Framework. Human rights principles are integrated into business policies and management systems to ensure that human rights are appropriately managed and addressed. The fundamental concepts underlying these rights inform the Code as well as ARM’s Grievance Procedure, Protected Disclosure and Sexual Harassment policies. The Code emphasises the company’s strong stance against unfair discrimination and, together with the Employment Equity Policy and ARM’s human resources management policies, promotes equality and the elimination of unfair discrimination on the basis of race, ethnicity, colour, gender, sexual orientation, nationality, place of origin, citizenship, creed, political persuasion, age, marital or family status or disability. ARM is committed to fair, responsible and competitive remuneration and all non-management employees are afforded freedom of association. We do not use forced, compulsory

or child labour. Security personnel, including contractors, receive human rights training as well as regular refresher training. Operational community relations strategies uphold and promote human rights and respect cultural considerations and heritage. Employees who feel that their human rights have been violated can report their grievances anonymously through the whistleblower facility, directly to their supervisors or managers, or to the human resources department.

We expect our suppliers and contractors to behave ethically and with respect for human rights.

The assets that self-assessed themselves as partially meeting the performance expectations follow ARM policies and standards, but areas of improvement have been identified and the assets are addressing the identified gaps.

ARM’S ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT FOR THE YEAR ENDING 30 JUNE 2023

Meets

Does not meet

Partially meets

N/A

ARM’s ICMM Performance Expectations

Self-assessment for the year ending 30 June 2023 continued

Sites that went through

Self-assessed sites

external verification

Cato

Two Rivers

Modikwa

Beeshoek

Black Rock

Ridge

Machadodorp

Platinum

Nkomati

Khumani

Platinum

ICMM’s Mining Principles

Mine

Mine

Works

Works

Mine

Mine

Corporate

Mine

Mine

Comments

Documents and publications

ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT THE YEAR ENDING 30 JUNE 2023

PRINCIPLE 4: Implement effective risk management strategies and systems based on sound science and which account for stakeholder perceptions of risks

4.1: Assess environmental

Corporate

and social risks and

and Asset

opportunities of new

level

projects and of

significant changes

to existing operations

in consultation with

interested and

affected stakeholders,

and publicly disclose

assessment results

4.2 Undertake risk-based

Corporate

due diligence

and Asset

on conflict and human

level

rights that aligns with

the OECD Due

Diligence Guidance

on conflict-affected

and high-risk areas,

when operating in,

or sourcing from,

a conflict-affected

or high-risk area

4.3: Implement risk-based Asset level controls to avoid/

prevent, minimise, mitigate and/or remedy health, safety and environmental impacts to workers, local communities, cultural heritage and the natural environment, based upon


  1. recognised international standard or management system

4.4: Develop, maintain and Asset level test emergency

response plans. Where risks

to external stakeholders are significant, this should be in collaboration with potentially affected stakeholders and consistent with established industry good practice

ARM’s Risk Management Framework is premised on the principles

of ISO 31000:2018 and contains all of the elements that can be found on our 2023 ESG Report, along with our risk assessment process based on the flow. ARM’s operations do not currently operate in a conflict- affected or high-risk area. The sites are either certified to or have the management systems aligned to ISO 14001 (Environmental), ISO 9001 (Quality), ISO 45001 (Occupational Health and Safety), and SANS 16001 (Wellness and disease management system). South African national legislation such as the National Environmental Management Act (NEMA) and the Environmental Impact Assessment (EIA) regulations requires the assessment of environmental and social risks and opportunities of new projects and of significant changes to existing operations in consultation with interested and affected stakeholders, and to publicly disclose assessment results. In addition, in all our projects or operations expansions EIAs, we are also assessing those risks

Performance Expectation 4.3. For the asset that self-assessed as partially meets, controls are in place to mitigate environmental impacts. All environmental aspects or indicators that are monitored within the mine have downstream points that are monitored to ensure adverse impacts do not occur or extend to local communities and the natural environment. Although controls are in place to mitigate the environmental impacts, the asset is developing a risk management strategy commensurate with the risk.

ARM’S ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT FOR THE YEAR ENDING 30 JUNE 2023

Meets

Does not meet

Partially meets

N/A

ARM’s ICMM Performance Expectations Self-assessment for the year ending 30 June 2023 continued

Sites that went through

Self-assessed sites

external verification

Cato

Two Rivers

Modikwa

Beeshoek

Black Rock

Ridge

Machadodorp

Platinum

Nkomati

Khumani

Platinum

ICMM’s Mining Principles

Mine

Mine

Works

Works

Mine

Mine

Corporate

Mine

Mine

Comments

PRINCIPLE 5: Pursue continual improvement in health and safety performance with the ultimate goal of zero harm

Documents and publications

5.1: Implement practices

Corporate

aimed at continually

and Asset

improving workplace

level

health and safety, and

monitor performance

for the elimination

of workplace fatalities,

serious injuries and

prevention

of occupational

diseases, based upon

a recognised

international standard

or management

system

5.2: Provide workers with

Corporate

training in accordance

and Asset

with their

level

responsibilities for

health and safety, and

implement health

surveillance and

risk-based monitoring

programmes based

on occupational

exposures

ARM has a SHE policy, SEC work plan, quarterly sustainable development committee meeting minutes, annual external health and wellness audit

to ARM standards, annual report on health work, and asset-level health and safety management system, policies and interventions. Scope

of annual occupational health specialist compliance audits. Site-level ISO management systems require training in accordance with relevant job descriptions. Induction training is in place and accredited training centres cover all employees annually for relevant training.

PRINCIPLE 6: Pursue continual improvement in environmental performance issues, such as water stewardship, energy use and climate change

ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT THE YEAR ENDING 30 JUNE 2023

6.1: Plan and design for

Corporate

closure in consultation

and Asset

with relevant authorities

level

and stakeholders,

implement measures

to address closure-

related environmental

and social aspects,

and make financial

provision to enable

agreed closure and

post-closure

commitments to be

realised

Review of closure costing is done by independent consultants in line with applicable legislation and is covered by the financial audit. Closure plans are in place for all assets and are submitted to the Department of Mineral Resources and Energy (DMRE) annually. Closure provisioning assessments are done annually as part of the financial audit.

ARM’S ICMM PERFORMANCE EXPECTATIONS SELF-ASSESSMENT FOR THE YEAR ENDING 30 JUNE 2023

Meets

Does not meet

Partially meets

N/A

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Disclaimer

ARM – African Rainbow Minerals Ltd. published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 15:48:07 UTC.