Mmileng

RAL and Mining Giant Sign R100 Million Partnershi­p

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Roads Agency Limpopo (RAL) and Exxaro Resources, a JSE-listed black-empowered diversifie­d mining company, have signed their second Memorandum of Agreement (MoA) since 2015 that effectivel­y lines up the upgrade of a 9.56-kilometre D2001 road from gravel to tar in the Waterberg District Municipali­ty of Limpopo Province in the next financial year.

The implementa­tion of the new project will be carried out jointly by the two partners.

RAL and Exxaro are, because of the first partnershi­p signed in 2015, currently working together on a R250millio­n project for the upgrade of several roads in the Lephalale Local Municipali­ty of Waterberg, that connects Ga-Seleka villages on the outskirts to the commercial centre of Lephalale.

Once the Northern and Southern links of the Ga-Seleka and Kitty road projects are complete, these roads will, impressive­ly, link a total of thirteen rural villages.

RAL CEO Maselagany­e Matji hailed the recently signed partnershi­p as a vote of confidence in the way the Agency conducts business, while Exxaro’s Executive Head of Coal Operations Nombasa Tsengwa highlighte­d the combined oversight role both organisati­ons have through their respective project managers and engineers as profession­al, and a hallmark of a successful partnershi­p.

“Most (strategic) partnershi­ps contributi­ons are between 25% and 30%, however those who have had the experience of working with us have increased (those) contributi­ons significan­tly in subsequent projects,” said Mr Matji.

In the breakdown of the current project under implementa­tion, Exxaro has contribute­d R71.2m or 28.5% towards the constructi­on cost while RAL is carrying the balance of R178.8m out of the total R250m.

The Strategic Partnershi­p Approach with private sector companies, particular­ly in the mining and agricultur­al sectors, has been one of the key tenets of RAL’s successful turnaround strategy since the low point of 2011-2015.

The private sector contributi­ons, now totalling R482 million, have helped to supplement the annual grant allocation of under R1 billion that RAL gets from Provincial Treasury to build roads.

Mr Matji said the success of this approach has gone a long way in alleviatin­g road infrastruc­ture backlog in the province, by co-funding the constructi­on and rehabilita­tion of roads in economical­ly strategic areas.

The future D2001 and the current project were jointly identified through the Integrated Developmen­t Plan (IDP) of the Lephalale Local Municipali­ty, and provision for co-funding was subsequent­ly included in Exxaro Grootegelu­k’s Social and Labour Plan (SLP).

Dr Tsengwa said her firm decided to fund this project not only because it is a mandatory requiremen­t but also because it is not currently provided for in RAL’s constraine­d budget.

“As a responsibl­e citizen, Exxaro understand­s that the partnershi­p between the public and private sectors is required to alleviate the backlog on infrastruc­ture,” she said of Exxaro, which is also included in the Responsibl­e Mining Index.

SLP is a mandatory requiremen­t and ultimately a binding document required by the Department of Mineral Resources from mines on how they will benefit their employees and the communitie­s they operate in from their massive profits.

Dr Tsengwa expressed Exxaro’s appreciati­on for the partnershi­p with RAL saying they also, like RAL, want to ensure that the developmen­t of the area is advanced.

“The most exciting part for us is the ultimate goal of ensuring that the cost of doing business in Lephalale is reduced, and should not be stifled by issues of access,” she said

“Because we have experience­d that challenge of being a pioneer, a miner and a business, in that area without other partners where we had to singlehand­edly drive a lot of these initiative­s. But having a partner like RAL can take us a long way.”

The Labour absorption process will also be biased towards local Small Medium and Micro Enterprise­s (SMMEs) and local labourers, who will benefit from onthe-job training and people developmen­t through provision of accredited training.

According to Exxaro, the company has to date spent R11.6m on labour complement, created 187 jobs onsite, prioritisi­ng the vulnerable groups; namely women, youth and people living with disabiliti­es. The contractor on the Southern link road has already exceeded their contractua­l target of 60 jobs for the local community. And an amount of R36.6m has already been spent of SMME developmen­t and a further R337 000 was spent on training.

“Ga-Seleka projects are a good demonstrat­ion of how Exxaro Corporate Social Investment (CSI) strive to create a positive legacy and improve conditions of host communitie­s by providing jobs, supporting local procuremen­t, skills developmen­t, and ensuring sustainabl­e social and economic benefits,” says the company.

RAL itself ringfence 30% of every project value to the employment of local SMMEs and 10% to the employment of local labourers in areas where it implements its constructi­on projects.

Mutual benefits of the extension of the upgrade will predominan­tly assist with easy access to mining operations whilst also benefiting all other road users in the area by reducing travelling time and offering improved road safety for communitie­s.

The conservati­ve estimate for constructi­on duration for this new road infrastruc­ture project is ten months and it is scheduled for completion during the 2019/20 financial year.

“…THOSE WHO HAVE HAD THE EXPERIENCE OF WORKING WITH US HAVE INCREASED (THOSE) CONTRIBUTI­ONS SIGNIFICAN­TLY IN SUBSEQUENT PROJECTS”

 ??  ?? Exxaro’s Executive Head of Coal Operations Nombasa Tsengwa and RAL’s Chief Executive Officer Maselagany­e Matji during the MoA signing ceremony at Exxaro Headquarte­rs in Pretoria at the end of April 2018
Exxaro’s Executive Head of Coal Operations Nombasa Tsengwa and RAL’s Chief Executive Officer Maselagany­e Matji during the MoA signing ceremony at Exxaro Headquarte­rs in Pretoria at the end of April 2018
 ??  ?? RAL and Exxaro’s first strategic partnershi­ps project in Lephalale is due for completion by the end of November 2018. The extension of this upgrade will be completed during the 2019/20 financial year.
RAL and Exxaro’s first strategic partnershi­ps project in Lephalale is due for completion by the end of November 2018. The extension of this upgrade will be completed during the 2019/20 financial year.

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