At a glance

Implats is one of the world’s foremost producers of platinum and associated platinum group metals (PGMs). Implats is structured around five main operations with a total of 21 underground shafts. Our operations are located within the Bushveld Complex in South Africa and the Great Dyke in Zimbabwe, the two most significant PGM‑bearing ore bodies in the world.

Summary performance data

Implats is one of the world’s foremost producers of platinum and associated platinum group metals (PGMs).

Production date**   2016 2015**** 2014**** Variance %
Tonnes milled (000t) 18 426 16 024 13 916 15
Refined platinum (000oz) 1 438 1 276 1 178 13
PGMs (000oz) 2 908 2 618 2 370 11
Revenue (Rm) 35 932 32 477 29 028 11
Operating cost (Rm) 21 691 19 074*** 14 613
Capital invested*** (Rm) 3 560 4 287 4 345 17
Income tax paid (Rm) 883 401 714 120
Unit cost* per oz Pt (Rand) 21 731 22 222 19 430 2
People   2016 2015 2014 Variance %
Employees in service
Own***** Number 38 189 40 019 40 238 5
Contractors***** Number 13 221 14 729 15 602 10
Turnover % 8 5 5 60
HDSA in management % 53 51 50 4
Safety rates
FIFR Pmmhw 0.091 0.058 0.043 57
RIFR Pmmhw 3.83 2.63 2.68 46
LTIFR Pmmhw 6.49 5.27*** 6.10 23
TIFR Pmmhw 12.31 9.78*** 11.90 26
Operations and shafts with one million or more fatality-free shifts Number 16 11 4 45
Employees’ health
People on wellness programmes Number 6 891 6 140 6 286 12
Total people on ART Number 4 843 4 429 4 276 9
TB cases Number 171 304 268 44
Medical incapacitation Number 377 505 331 25
The environment   2016 2015 2014 Variance %
Energy intensity (GJ/tonne milled) 0.9405 0.9946 1.0344 5
Total direct CO2 intensity (t/tonne milled) 0.2072 0.2091 0.2182 5
Total direct SO2 intensity (t/tonne milled) 0.0017 0.0017 0.0022 0
Water intensity (Mℓ consumed/ tonne milled) 0.0025 0.0025 0.0025 0
% water recycled (total water recycled Mℓ/total water consumed Mℓ) 41 36 39 15
Social capital   2016 2015 2014 Variance %
SED expenditure (RSA) (Rm) 105 83 71 27
SED expenditure (Zimbabwe) (US$m) 4.7 5.1 8.9 8
Housing and living conditions expenditure (RSA) (Rm) 236 228 261 4
Housing and living conditions expenditure (Zimbabwe) (US$m) 1 6 15 83

Improvement Deterioration     * Excluding share-based payments  — Unchanged     ** Production costs exclude Mimosa and Two Rivers and hence impact intensity factors     *** Restated numbers     **** Ramp up and strike impacted     ***** Includes Mimosa employees and contractors attributable to Implats     Variance 2016 versus 2015

Our approach to creating value

Statement by the chairperson of the social, transformation and remuneration committee

Mpho Nkeli
Chairperson, social, transformation and remuneration committee
BSc Environmental Science (NUL), MAP (Wits), MBA (GIBS)

We are committed to promoting sustainable social and economic transformation through constructive collaboration with our stakeholders.

As chair of Implats’ social, transformation and remuneration (STR) committee, it gives me pleasure to present this year’s Sustainable Development Report. This is my first full year on the board of Implats, where it has been a privilege to serve as the chairperson of this committee.

Committee responsibility

My primary responsibility is to ensure the committee delivers on its advisory and oversight functions relating to Implats’ activities on social and economic development, remuneration, corporate citizenship, environmental management and labour and employment issues. In this report, we review Implats’ activities and performance and assess how the Company is delivering on its mission to ensure sustainable value creation for all its stakeholders.

Given the challenging socio-political environment – characterised by high levels of joblessness, persistent income inequality and increasing evidence of community frustration – it is important that businesses play an active role in finding solutions to societal challenges. We need to work with our partners in business, the government, labour and local communities to build an inclusive economy that provides opportunities for social mobility, facilitated by equitable access to jobs, education and health. We equally do not take lightly the duty of care we owe to protecting the natural environment in which we operate. We strive to mitigate our environmental impacts by retaining fauna and flora, rehabilitating land disturbed by our operations, and ensuring responsible waste management and prudent use of water and energy. Ensuring the social, economic and environmental viability of our host communities and the broader economy is critical to safeguard the continuing viability of our business.

Amid growing pressure on companies to demonstrate greater social return, the South African platinum sector continues to face tough operating conditions typified by low commodity prices, increasing costs associated with deep-level mining, the depreciation of the rand on the one hand and a demand for higher wages on the other. In protecting our social licence to trade, Implats needs to ensure responsible behaviour within the organisation and towards all its stakeholders.

Caring for our employees

One of the areas where the Group has made a particularly impressive contribution is in providing quality housing and improved living conditions for employees and their families. Over the past eight years the Group has invested more than US$100 million to provide more than 1 400 company houses for our employees in Zimbabwe. In South Africa it is heartening to see how far the mining sector as a whole has progressed in this area. The Group has invested more than R3.7 billon in accommodation surrounding its South African operations, providing almost 3 000 housing units, converting mining hostels into 5 243 single units and 308 family units and securing substantial land for future housing development. By providing the opportunity for home ownership to mining employees, which in turn opens access to local schools and health services for community members and their families, the Group is making a real difference in offering a source of dignity with economic opportunity and helping to address some painful legacies.

Employee health and safety is a top priority. The Group’s commitment to ensuring a safe and healthy working environment has been evidenced by the visible leadership demonstrated by the Group chief executive officer and the executive team and by the investments made in equipment and infrastructure aimed at providing a safe physical environment across all Group operations. While this has resulted in the notable safety milestones achieved at most operations, these were overshadowed this year by the 11 tragic fatalities at three operations. Our thoughts are with the families, friends and colleagues of each of the deceased.

It was troubling to learn that the root cause of each of these incidents was non-compliance to standards and safe production rules, in some cases at a supervisory level. The Group is taking appropriate disciplinary action and is implementing remedial actions to prevent repeat incidents. The strong safety performance demonstrated by most of the Group’s operations this year shows what can be achieved in the quest for zero harm.

Community development

As a new board member, I have been heartened by what I have seen on the ground and what I have heard from stakeholders regarding Implats’ approach to engaging with and supporting the socio-economic development of neighbouring communities.

Complementing our emphasis on accommodation and living conditions, the communities in which we operate continue to benefit significantly from the implementation of our operations’ social and labour plans, which seek to address identified community needs by focusing on infrastructure, access to clean water, health, education and employment.

Outlined in more detail in this report are the numerous initiatives Implats is taking to stimulate economic opportunities in its neighbouring communities and to ensure responsible management of scarce shared local resources, such as water and energy. The Group’s initiatives relating to skills development, local procurement, supplier and enterprise development and its investments in community infrastructure in health and education, are having a measurable impact on individuals and communities in South Africa and Zimbabwe.

However, it is clear that we continue to face challenges in these communities. Increasingly, there is a fine line between the services local authorities should be providing and those that communities are now expecting from companies such as Implats. With these shifting expectations and the blurring of the expected roles of companies and local authorities, businesses may come under added pressure. Managing these expectations requires us to strike a difficult balance between respecting and upholding the roles and responsibilities of local government, while seeking to allay the growing frustrations of increasingly vocal local communities.

Stakeholder collaboration

While companies mining the country’s resources have a particular duty of care to their communities and to the environment, it is important to recognise and acknowledge joint responsibility – shared between the government, business and each of us as individuals – in finding solutions to our collective challenges. This has worked well where Implats has partnered with passionate entrepreneurs across communities who have seized opportunities presented to them.

A key imperative facing all South African companies is the need to recognise and address the unique challenges South Africa faces due to its difficult history. Driving socio-economic transformation within the Implats work environment and across its value chain remains a priority and informs much of the Group’s engagement with the government, communities and other stakeholders. Implats goes beyond compliance in this area and is committed to engaging actively with the government and regulators to develop frameworks to drive the transformation agenda. I have been encouraged to see the leadership role Implats has played in industry discussions on transformation and how the Group has sought to strengthen its relationships with the government through frank and meaningful engagement, particularly in difficult areas where there may be diverging views on solutions.


I express my thanks to management and my colleagues on the STR committee for their advice throughout the year, which has proved invaluable in ensuring the committee delivers on its oversight and advisory duties. I have witnessed management living and driving the values of “Respect, Care and Deliver”, to ensure that Implats develops as a fair, ethical and sustainable organisation.

As an Implats stakeholder, I encourage you to share your views on Implats’ activities related to delivering on its strategic commitment to minimise negative social and environmental impacts and to promote meaningful social and economic transformation. Implats is committed to building on its current positive contribution to the communities and people with which it engages and I encourage you to engage with us to ensure mining leaves a lasting positive legacy in the region.

Summary of the influences to the Group strategy


Maintaining operational excellence and safe production

Conserving cash, especially while metal prices remain depressed

Maintaining our social licence to operate

Maintaining prudent investment through the cycle

Maintaining strategic optionality and positioning the Group for the future

Supported by

  • Safety strategy
  • Cultural values founded on Respect and Care
  • Health strategy
  • People strategy
  • Operational delivery and performance management
  • Effective planning and mineral resource management
  • Rationalisation and prioritisation of capital allocation across the Group
  • Intensive cost and productivity focus
  • Meaningful and sustainable social investment in our communities
  • Delivering on Social and Labour Plan (SLP) commitments
  • Adhering to commitments in the President’s Framework Agreement
  • Aligning and positioning the organisation in terms of the National Development Plan
  • Respecting human rights and interest of all stakeholders
  • Abiding by the laws of the countries in which we operate
  • Adherence to all relevant environmental legislation
  • Preservation of natural water resources and water quality
  • Optimisation of energy efficiencies and reduction of carbon
  • Cost optimisation at all operations
  • Investment in new technology: modernise to improve safety and production
  • Development of alternative energy sources linked to our metals
  • Optimising of mining efficiencies through productivity programmes
  • Ramping up of new shafts; optimisation of mid-life shafts; closure of old, unprofitable shafts
  • Merensky ore reserves producing at much higher mining efficiency and lower unit cost
  • Targeted interventions to improve mining efficiencies and reduced embedded fixed costs
  • Deferring capital intensive projects to conserve cash and protect the balance sheet

Stakeholder review and mapping

Each stakeholder is allocated an executive or champion responsible for managing the relationship with the organisation.

Stakeholders are defined as those people who are interested and affected by our business as well as those who have a material influence on our ability to create value.

We have undertaken an inclusive stakeholder review process with the primary objective of improving relationships by becoming proactive in our approach to building relationships. This process involved:

  • Identifying all stakeholders
  • Prioritising stakeholders according to our impacts on them and the nature of the relationship
  • Determining their level of influence on the business
  • Mapping each stakeholder against a designated champion or responsible executive
  • Defining the method of engagement and identifying potential opportunities to grow and sustain the relationship
  • Establishing a tool for monitoring and evaluating relations in order to take proactive measures to improve these where they are found lacking

The process identified six priority stakeholder groups in Zone 1 for immediate intervention, informed by the nature of the current relationship and the effectiveness of existing engagement structures. This remains an area of critical focus and requires due care and responsiveness to build better relationships. Each stakeholder is allocated a responsible executive or champion to manage the relationship with the organisation as outlined in the table alongside.

Responsibilities are sub-delegated by each executive to specialist personnel and operational executives depending on the nature of the issues. Quarterly stakeholder engagement meetings where operational executives and group champions meet to discuss and identify material issues were initiated in the latter part of the previous reporting period. Part of the agenda is to:

  • Identify key stakeholder issues;
  • Highlight potential risks; and
  • Develop appropriate action and responses.

Action items following from this process have been populated into the risk management system and allocated to a responsible person, thus ensuring that stakeholder actions and responses are managed on a continuous basis and are accessible to the entire executive team for oversight.

Zone 2 stakeholders have existing and mature engagement structures with strong influence and impact on our business, as such our objectives are to further build on these relationships. Zone 3 stakeholders have existing and mature engagement structures, but have less influence/impact on our business, as such our objectives are to sustain our relationship.

Quarterly stakeholder engagement meetings, where operational executives and group champions meet to discuss and identify material issues, were initiated.

Zone 1 Priority areas

Employees Group executive - People
Unions Group executive - People
CommunitiesChief executive – Operations
Government Group executive officer
Shareholders and
investment community Group executive officer
Chief financial officer
Suppliers Chief financial officer
Customers Group executive – Marketing and refining

Zone 2 Evolutionary progress

Media and analysts Group executive – Corporate affairs
Board Chief executive officer
Business partners Chief financial officer
Industry and
business forumsChief executive officer
Banks and financial
institutions Chief financial officer
Business analystsGroup executive – Corporate affairs

Zone 3 Sustain process

Competitors Chief executive officer
Emergency services Group executive – Health and safety
Civil society Group executive – Corporate affairs
NGOs Group executive – Corporate affairs
Universities and
R & D institutionsGroup executive – Technical services

  • Priority area
  • Evolutionary progress
  • Influenced by progress in Zone 1

Identifying our material sustainability focus areas

Implats’ risk management process sets out to achieve an appropriate balance between minimising the risks associated with any business activity and maximising the potential reward.

We identify our strategic business objectives, and our material sustainability focus areas, through our structured internal risk management process, and with consideration to the views and interests of our stakeholders.

Our risk assessment and management process

Implats’ risk management process sets out to achieve an appropriate balance between minimising the risks associated with any business activity and maximising the potential reward. This process enables the board and senior managers to take decisions regarding the possible trade-off between risk and reward, and assists them to identify and pursue appropriate strategic growth opportunities informed by the Group’s risk appetite and risk tolerance levels.

Our risk management process comprises the following steps:
  • Establishing the context:We consider the nature of the external operating context and the views and interests of our stakeholders
  • Identifying the risk: We establish both the source and cause of the risk and evaluate all possible consequences
  • Analysing and evaluating the risk: We identify and assess what this means for the achievement of our objectives, determine the risk rating (by severity, exposure and frequency), identify the controls (both existing or new) and prioritise the risks
  • Treating the risk: We consider all options to establish the most appropriate response for each identified risk

Arising from this process, that is wholly aligned to ISO 31000, we identify a set of objective-based risk assessments (ORAs) that cover approximately 60 of the most important aspects of the Implats business. Each identified risk, as well as its associated controls, has a clearly defined line management owner. This process is repeated and reviewed regularly, ensuring that the information remains relevant. All information is captured into the Group risk repository system that informs the Group risk profile. The Group risk profile is presented on a monthly basis to the Exco. Each business unit takes full ownership for their respective risk profiles, and these are discussed and debated at various operational reviews on a continuous basis. The Group strategic risks are discussed at Exco on a regular basis for relevance, input and update. This approach allows for robust discussion regarding the materiality of the risk, its likely impact on the business in the short, medium and long term, and the necessary risk mitigation measures. While it is fully acknowledged that the board is responsible for risk management at Implats, risk management is seen to be pervasive throughout the organisation. While risk is used to drive the agenda of each of the Board sub-committees, the oversight of the risk management process and system lies with the health, safety, environment and risk committee (HSER), while each board sub-committee takes ownership of the risks relevant to it.

This process culminates in the identification of a prioritised set of Group strategic risks. Collectively, these risks, along with the outcomes of our internal and external stakeholder engagement activities, and our assessment of market fundamentals, are used to identify our materialsustainability-related issues. These issues are prioritised in terms of their impact both on the organisation and on our key stakeholders. They inform the nature of our Group strategic objectives as well as the performance issues for monitoring and reporting.

Classification of Group strategic risks – June 2016

This year the Group risk profile identified the following top 10 priority risks:

Depressed PGM basket prices


The current weakness in the PGM basket price remains a concern and is unsustainable in the medium to long term. Factors driving this include: reduced economic growth in China; reduced Japanese car sales following 2014 sales tax hike; investors, who are generally negative commodities, have liquidated EFT holdings to satisfy both platinum and palladium market fundamental deficits.

Our response measures

Understanding the future demand for our products, and corresponding industry supply-side profile. Scanning the environment for technological advances that may affect the demand for Implats’ products (substitution). Instituting appropriate responses where possible.

  • Maintaining prudent investment through the cycle

Non-delivery of production and productivity targets at Impala Rustenburg


Short-term challenges include:

  • ramping up to full production;
  • maintaining our ability to achieve completion of the mining cycle;
  • speeding up the establishment of face length in new mining areas; and
  • ensuring increased productivity.
Our response measures

Implementing initiatives relating to: mechanised off-reef development, management of critical spares, detailed work procedures, team mobilisation, training, mine planning protocols, production planning, quality mining and visible felt leadership.

  • Improve efficiencies through operational excellence and safe production

A significant deterioration in safety performance


Safety is the primary priority for the Implats leadership. The increase in the number of fatalities is unacceptable. Mine safety is receiving high priority at a national political level and any significant deterioration in performance carries significant risk.

Our response measures

Strong strategic commitment to develop an appropriate safety culture, driven through initiatives relating to people, practices and the physical environment.

  • Improve efficiencies operational excellence and safe production

Revenue impact of Section 54 safety stoppages by the DMR


The 80 Section 54 stoppages in 2016 are deemed to have cost Impala Rustenburg and Marula approximately R1 394 million in direct forgone revenue during FY2016. The indirect cost of these stoppages in terms of management time and start-up difficulties are of a similar magnitude.

Our response measures

Rigorous interrogation of the impact of Section 54s, along with participation in the initiative by the Chamber of Mines. Strong commitment to training of management, as well as to incentivise safe working conditions.

  • Improve efficiencies through operational excellence and safe production

Weak cash flows and balance sheet constraints (liquidity)


Implats is currently operating in a cash constrained mode, as are our peers.

Our response measures

Proactive and rigorous review of the short and long-term business planning process and parameters, together with ensuring that appropriate funding is available or in place.

  • Maintaining optionality and position for the future
  • Cash conservation

The security of supply of water in South Africa


As an intensive water user, Implats is exposed to risks relating to: reduced water availability; continuing uncertainty in the existing policy environment; the declining state of existing water infrastructure; and the related socio-economic impacts on neighbouring communities.

Our response measures

Promoting water stewardship and security through effective implementation of water conservation and management initiatives, in terms of our revised water strategy.

  • Improve efficiencies through operational excellence and safe production
  • Maintain social licence to operate

Employee relations climate


Our response plan to conserve cash has regrettably resulted in some job losses. A Section 189 notice has been served on the Rustenburg operations. Our aim is to reconnect with our employees – allowing managers and supervisors to retain this space by training/empowering them to resolve problems as fast as possible at every level. We need to sustain the current relationship through the imminent wage negotiation process, local government elections, and election of shop stewards.

Our response measures

Striving to provide an enabling work environment that fosters open, honest and effective relations between management, employees and elected union representatives, with an emphasis on developing direct communication with employees, people leadership and team mobilisation, and our respect and care initiative. Engaging with various government departments directly, working with the Chamber of Mines and labour representatives to find sustainable solutions to industrial relations challenges in the country.

  • Improve efficiencies through operational excellence and safe production

Unavailability of secure and reliable power at Zimplats


Unavailability of reliable and secure power from ZESA to meet company operational and growth requirements or alternatively failure to ensure a stable power supply to operations, both on a short-term and long-term basis, compounded by current low water levels and insecurity of Kariba Dam wall.

Our response measures

Maintaining regular contact with ZESA. Ensuring appropriate contingency plans in place. Implementing initiatives to reduce energy consumption.

  • Improve efficiencies through operational excellence and safe production

Excessive taxation and levies at the Zimbabwean operations


There is an exposure to high taxation as a result of the unique Zimplats taxation, particularly the special mining lease (SML). There are multiple and sometimes conflicting interpretations of this piece of taxation legislation, giving rise to taxation risks.

Our response measures

Ensuring compliance through external tax audits and the use of specialist tax advisory services. Strong commitment to tax training and awareness, resolution of historical tax matters and the tax risk management framework. Engagement with tax authorities to discuss prospective transaction and resolution of historic tax matters.

  • Cash conservation

The security of supply of electricity in South Africa


In South Africa, the electricity supply industry is dominated by Eskom, which owns and operates the transmission grid. Eskom has a net installed generation capacity of 42 000MW. Given planned and unplanned outages it is able to bring a maximum of 36 000MW on line at present. Sixty percent of the generating capacity is beyond the 30 years design life.

Our response measures

Maintaining regular contact with Eskom to ensure we are aware of any situation that may affect us. Ensuring appropriate emergency evacuation plans. Implementing initiatives to reduce energy consumption.

  • Improve efficiencies through operational excellence and safe production
  • Cash conservation


Independent assurance report on selected sustainability information

To the directors of Impala Platinum Holdings Limited

We have undertaken an assurance engagement on selected sustainability information as described below and presented in the 2016 sustainability report of Impala Platinum Holdings Limited (Implats) for the year ended 30 June 2016 (the report). This engagement was conducted by a multidisciplinary team of health, safety, social, environmental and assurance specialists with relevant experience in sustainability reporting.

Subject matter and related assurance

We are required to provide:

Subject matter and related assurance

  1. Reasonable assurance on the following key performance indicators:
    KPIs prepared in accordance with the Global Reporting Initiative Sustainability Reporting Guidelines (GRI G4 Guidelines), supported by Implats’ internal guidelines
    Assured value
    2 Contractor and employee fatalities 11 fatalities 43, 119 Implats Group
    3 Contractor and employee lost time injury frequency rate (LTIFR) 6.49 3, 10, 43, 120 Implats Group
    4 Total injury frequency rate (TIFR) 12.31 3, 43, 120 Implats Group
    5 New cases of noise-induced hearing loss (NIHL) submitted for compensation 61 cases 13, 49, 121 Implats Group
    6 Employees on antiretroviral treatment (ARV/ART) – net enrolment at year end 4 843 employees 3, 13, 48, 49, 121 Implats Group
    7 Employee voluntary counselling and testing programme uptake (VCT) 10 867 tested cases 48, 49, 121 Implats Group
    8 Energy consumption 17 328 GJ000 90, 123 Implats Group
    9 Water withdrawn 26 703 Ml 87, 123 Implats Group
    10 Water consumption 45 528 Ml 87, 123 Implats Group
    11 Total indirect carbon dioxide (CO2) emissions 3 286 098 Tonnes 124 Implats Group
    12 Total nitrogen oxide (NOx) emissions 14 435 Tonnes 93, 124 Implats Group

  2. Limited assurance on the following key performance indicators:
    KPIs prepared in compliance with the Amendment to the Broad-Based Socio- Economic Empowerment Charter for the South African Mining and Minerals Industry (BBSEEC) (2010) and related scorecard (2010)
    Assured value
    13 Number of employees who are classified as historically disadvantaged South Africans (HDSA) and who are employed at management positions, above the supervisor level – excluding non-executive directors 363 employees 59 South African operations only
    14 Number of women employees in management positions, above the supervisor level – excluding non-executive directors 137 employees 14, 59 South African operations only
    15 Number of people trained through adult basic education (ABET) – net enrolment at year end 173 people 122 South African operations only
    16 HDSA procurement (>25%) (in line with the Mining Charter categories of capital goods, services and consumable goods) R6.1 billion 75 South Africanoperations only
    17 Local procurement R608 million spent on Tier 1 procurement 76 South African operations only
    KPIs prepared in accordance with the GRI G4 guidelines, supported by Implats’ internal guidelines
    Assured value
    18 Total socio-economic development (SED) expenditure R104.6 million 10, 66 South Africanoperations only
    19 Total direct carbon dioxide (CO2) emissions 381 780 tonnes 124 Implats Group
    20 Total sulphur dioxide (SO2) emissions 58 747 tonnes 93 Implats Group

Directors’ responsibilities

The directors are responsible for the selection, preparation and presentation of the selected sustainability information in accordance with the following reporting criteria:

  • For the subject matters in 1 and 2(b): the GRI G4 Guidelines, supported by Implats’ internal guidelines; and
  • For the subject matters in 2(a): The amendment to the BBSEEC (2010) and related scorecard (2010).

This responsibility includes the identification of stakeholders and stakeholder requirements, material issues, for commitments with respect to sustainability performance and for the design, implementation and maintenance of internal control relevant to the preparation of the report that is free from material misstatement, whether due to fraud or error.

Our independence and quality control

We have complied with the code of ethics for professional accountants issued by the International Ethics Standards Board for Accountants, which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

KPMG Services Proprietary Limited applies the International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control, including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Our responsibility

Our responsibility is to express an assurance opinion and conclusions on the selected sustainability information based on the work we have performed and the evidence we have obtained. We have conducted our engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standards Board. That standard requires that we plan and perform our engagement to obtain assurance about whether the selected sustainability information is free from material misstatement.

An assurance engagement in accordance with ISAE 3000 (Revised) involves assessing the suitability in the circumstances of Implats’ use of its reporting criteria and performing procedures to obtain evidence about the quantification of the selected sustainability information and related disclosures. The nature, timing and extent of procedures selected depend on the practitioner’s judgement, including the assessment of the risks of material misstatement, whether due to fraud or error. In making those risk assessments we considered internal control relevant to Implats’ preparation of the selected sustainability information. The procedures we performed were based on our professional judgement and included inquiries, observation of processes performed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification methods and reporting policies, and agreeing or reconciling with underlying records.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the selected sustainability information set out in section 1 of the subject matter and related assurance paragraph above. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. Given the circumstances of our limited assurance engagement on the selected sustainability information set out in section 2 of the subject matter and related assurance paragraph above, in performing the procedures listed above we:

  • Interviewed management to obtain an understanding of the internal control environment, risk assessment process and information systems relevant to the sustainability reporting process;
  • Tested the processes and systems to generate, collate, aggregate, monitor and report the selected sustainability information, which included the following;
    • Inspected supporting documentation and performed analytical procedures on a sample basis to evaluate the data generation and reporting processes against the reporting criteria;
    • Undertook site visits to the Rustenburg (mining, concentration and smelting), Springs (refineries), Marula (mining and concentrating) and Zimplats (mining and concentration, where we also met with Mimosa personnel) operations; and
  • Evaluated whether the selected sustainability information presented in the report is consistent with our overall knowledge and experience of sustainability management and performance at Implats.

The procedures performed in a limited assurance engagement vary in nature from, and are less in extent than for, a reasonable assurance engagement. As a result, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion on the matters described in section 2 of the subject matter and related assurance paragraph above.

Reasonable assurance opinion and limited assurance conclusions

  1. On the selected key performance indicators on which we are required to express reasonable assurance

    In our opinion, the selected sustainability information set out in 1 of the subject matter and related assurance paragraph above for the year ended 30 June 2016 is prepared, in all material respects, in accordance with the GRI G4 guidelines, supported by Implats’ internal guidelines.

  2. On the selected key performance indicators on which we are required to express limited assurance
    1. Based on our work performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the selected sustainability information set out in 2(a) of the subject matter and related assurance paragraph above for the year ended 30 June 2016 is not prepared, in all material respects, in compliance with the amendment to the BBSEEC (2010) and related scorecard (2010).
    2. Based on our work performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the selected sustainability information set out in 2(b) of the subject matter and related assurance paragraph above for the year ended 30 June 2016 is not prepared, in all material respects, in accordance with the GRI G4 Guidelines, supported by Implats’ internal guidelines.

Other matters

The maintenance and integrity of the Implats website is the responsibility of Implats’ management. Our procedures did not involve consideration of these matters and, accordingly, we accept no responsibility for any changes to either the information in the report or our independent assurance report that may have occurred since the initial date of presentation on the Implats website.

Restriction of liability

Our work has been undertaken to enable us to express the opinion and conclusions on the selected sustainability information to the directors of Implats in accordance with the terms of our engagement, and for no other purpose. We do not accept or assume liability to any party other than Implats, for our work, for this report, or for the opinion and conclusions we have reached.

KPMG Services Proprietary Limited

Per PD Naidoo

September 2016