This successful block and brickmaking project is part of the Titirheleni Womans Project, funded by the Palabora Foundation.
			Local women produce crafts for sale at the tswelopele samall business centre
			Local women produce crafts for sale at teh tswelopele samll business centre

Limpopo Province Government - Government
Kruger National Park - Government
Department of Agriculture and Foresty (Working for Water project) - Government
Nelson Mandela Children´s Fund - NGO
Phalaborwa Community Forum - NGO
Foskor - Business
Sasol Agri. - Business

Through many projects, Rio Tinto Group businesses contribute to economic, social and environmental progress as well as to institutional, operational and technological advances. The Group’s sustainable development goal was set out in the 2000 Social and environment review, requiring businesses, operations and products to integrate social, environmental and economic practices to contribute to the global transition to sustainable development.

Our Virtual Exhibit contribution showcases our sustainable development initiatives through several projects, presented as 12 case studies. How Palabora is prolonging development at South Africa´s largest copper mine featured here is just one of these 12 projects. View the full picture of Rio Tinto programmes [link to come]

Palabora, a Rio Tinto company, operates an integrated mining, concentrator, smelter and refinery complex, located at Phalaborwa in the Limpopo Province of South Africa, approximately 560 km north east of Johannesburg and adjacent to the Kruger National Park. The company mines and processes copper, copper by-products, and industrial minerals.

Construction of the open pit mine began in 1963 and the processing of ore in 1966. Subsequent expansions due to technological improvements extended the life of the mine to nearly double the originally planned 20 years (1965 - 1985).

Open pit operations ceased in April 2002, leaving the company with a choice of closing down operations or looking into the viability of a more costly, yet smaller underground operation.

The decision to go underground was a bold step and, together with a healthy industrial minerals division (vermiculite and zirconium basic sulphate) assures the sustainable future, albeit reduced, of the local economy and the supply nationally of refined copper for at least 20 years.

If the decision had been made to close the mine at the end-of-life of the open pit, negative implications and other harmful multiplier effects would have resulted, not only for the local socio-economic situation, but also for the regional and national economies. Nationally, Palabora supplies all of South Africa´s refined copper needs. Locally, with a population of 200,000 within a 50 km radius, the mine, together with two smaller interdependent organisations, produces approximately 80 per cent of the area´s GDP. Mine closure would have resulted in further aggravation of the local unemployment situation and a disastrous effect on the local economy.

Environmentally, the company has extensive ongoing programmes in place to minimise the effects of emissions, dust and water pollution, as well as an on-site wild life management programme. Palabora shares a common border with South Africa´s largest eco-tourism attraction, the Kruger National Park. The impact of the company´s operations on the surrounding environment is therefore closely scrutinised by government, environmental groups, the National Parks Board and the local community. Sulphur dioxide emission levels as a result of copper smelting have been reduced to an average 14 parts per billion in 2001 from 21 parts per billion in 2000. Since 1999, fresh water intake for operations has been reduced from 50 million litres to 43 million litres per year. In 2002 the target is 38 million litres. The company subscribes to the ISO 14001 environmental management system, and maintains a plan for eventual closure of operations, including management of social and environmental impacts, estimates of closure costs and financial provision, and consultation with local communities.

Health and safety are paramount. The safety goal is zero injuries and the health programme also has a goal of zero occupational illness. There were 18 lost time injuries in 2001 compared with 27 in 2000. The Lost Time Injury Frequency Rate (LTIFR) of 0.27 in 2001, which includes all construction contractor workers in the underground mine, was the lowest on record. The company has been proactive in fighting HIV/AIDS and has awareness and support programmes on site.

The underground mine is already making a contribution to economic development. With the US$410 million project under way this year, 90 per cent of this has been spent within South Africa, of which a large proportion has been spent in Phalaborwa. About 2,000 contractors were employed during construction, and a number of the existing workforce learned specialist skills in hoisting, refrigeration and ventilation.

A major focus of the Foundation is to improve teaching skills and educational performance from pre-school to high school. Intervention is aimed at creating a pool of students with the potential to pursue technical careers. The goal is to create a talent pool of technical skills in the local area that will benefit not only Palabora but the rest of the mining and industrial sector in South Africa. Palabora is addressing the situation in partnership with the Limpopo Province Education Department.

Since 1987 the Palabora Foundation has been a means of identifying ways to enable the local community to develop and become independent. The community, health and education projects of the foundation are chosen in consultation with the community. Since the start of the underground mine, these have been refocused on initiatives that have the greatest potential to contribute to sustainable livelihoods in the region.

Recently, Palabora has thought more about the implications of mine closure on neighbouring communities and how entities like the foundation can help embed sustainable livelihoods. The company has committed itself to exploring avenues through which this transformation process can be carried out in the name of sustainable development

The Palabora Foundation and the company have a role in developing what are called Black Empowered Enterprises (BEEs) owned by “previously disadvantaged people”. Palabora’s procurement of supplies for the mine is used as a lever to provide business opportunities for BEEs in the region. Once on their feet courtesy of mine contracts, they are positioned to develop business relationships elsewhere that should outlive the mine. Three cooperatives, Sewing, Woodwork and Craft, have been developed to the point where they can operate independently of the foundation.

Palabora has sold the local Hans Merensky Golf and Country Club to a local tourism consortium, Golf in the Wild. The club was a holdover from the days of privilege when South African mines operated sport and social amenities for senior staff. It is a non-core asset put in the hands of those who have the expertise to unlock greater value from the facility. Golf in the Wild plans to transform the property into a top class game and golfing destination for tourists This, together with the nearby Kruger National Park will help develop a sustainable business in the tourism sector.