5.1. Introduction
This chapter is a presentation of the cases, that being Anglo American Platinum and Impala Platinum. The chapter presents a description of the two cases based on the investigations and interactions with the respective sources of information. This data is supported or corroborated by information gathered from desk research in order to strengthen its validity. The cases are documented and guided by a pre-established framework that delivers on the research objectives.
The chapter provides sufficient data to understand each MNC, particularly in regards to CSR strategies and practices.
Thorough descriptions of the organisations are presented as a means of providing a general introduction on the MNCs and establishing a basis for comprehension of their CSR effort. The chapter follows up with descriptions on CSR priorities and practises as well as the MNCs’ interactions with government and communities. The chapter delivers, among other matters, how MNCs develop CSR strategies in response to IEEP, the CSR priorities of the MNCs in their home countries juxtaposed to those in the host country as well as articulating the Zimbabwean government’s expectations and how these MNCs have conducted themselves in light of these expectations. Each case follows a similar format, with variations depending on the depth of data that was collected.
A within-case analysis was used to get an in-depth understanding of the cases. This method allows the researcher to be immersed in the cases under review, identifying important statements that have been made by participants and allowing the corroboration of data from documents such as annual reports, newspaper articles, press releases, research papers, official speeches and other authenticated public records. This process helps establish a solid understanding of the MNCs, their CSR practices both at home and in the host country, all of which should culminate in delivering on the research objectives through cross-case analysis and interpretation of these findings in the ensuing chapter.
5.2. Anglo American Platinum
Anglo American Platinum (Amplats) is a subsidiary of Anglo American Corporation (AAC), a South African multinational mining organisation with interests in diamond, copper, iron ore, platinum, coal, nickel and other commodities. AAC was established by German national Ernest Oppenheimer in 1917 and has grown considerably to become one of the largest mining houses in the world. Initially established to take advantage of the gold rush in South Africa, the company gradually diversified into other minerals that were found in the country. In 1926 the company also became the single largest shareholder in De Beers, a company that specialised in diamond mining and trading.
AAC activities are not confined to South Africa and the organisation has expanded over the past 100 years to have a truly global reach. This has seen the establishment of subsidiaries such as Anglo American Gold, Anglo American Coal, Anglo American Canada and Anglo American Australia. The
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group currently has a footprint (operations and offices) on all continents on the globe, has its headquarters in both Johannesburg and London and is also listed on both the Johannesburg Stock Exchange in the London Stock Exchange. AAC has a market capitalisation of US$54 billion (Forbes magazine, 2021: par. 1) and employs 95 000 permanent and contract workers across its global operations according to 2020 reports (Anglo American integrated annual report, 2020:4). Below is a world map that shows the global operations of AAC.
Figure 5.1 Anglo American Corporation global footprint.
Source: Anglo American factsheet (2020:1)
In 1928, upon the discovery of platinum group of metals (PGMs) in South Africa, AAC partnered with Hans Merensky to establish Johannesburg Consolidated Investment, the company that would eventually transform into Anglo American Platinum (Amplats). At this time, the organisation was growing considerably, and its influence was spanning across the South Africa’s economic political and social landscape.
Anglo American Platinum as an entity, was established in 1995 following the unbundling of Johannesburg Consolidated Investments and the acquisition and control of Rustenburg Platinum Mines (Smith, Taylor and Anderson, 2006:301). This exercise resulted in a different investment approach in PGM mining in South Africa. According to Anglo American Platinum Limited Ore Reserves and Mineral Resources Report (2018:7) Amplats’ “mineral resources of PGMs occur exclusively within southern Africa and are hosted by its two distinct layer intrusions that is the Bushveld complex in South Africa and the Great Dyke in Zimbabwe”. These geological structures
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account for approximately 85% of the world's known platinum and 55% of the world’s known palladium reserves.
5.2.1. Structure of operations
According to Official 4, Amplats is the now the world’s largest producer of platinum and is responsible for approximately 40% of the global platinum output. The company has mining operations in South Africa and Zimbabwe, has its headquarters in Johannesburg and is listed on the Johannesburg Stock Exchange. Amplats owns and operates four mines, namely Mogalakwena, Amandelbult, Mototolo in South Africa and Unki in Zimbabwe. The organisation is also involved in three joint ventures in South Africa. The first of these ventures is a 50% joint venture with African Rainbow Minerals at Modikwa platinum mine and the second agreement is with Sibanye-Stillwater and involves operations at Kroondal and Marikana mines. Amplats is also in a joint venture with Atlatsa Resources at Bokoni Platinum Mine. Figure 5.2 outlines the organisation structure, including its relationship with AAC, whilst the discussion that follows serves to highlight the scale of the organisation and its operational capabilities, all of which have a bearing on its CSR approach.
Figure 5.2 Anglo American Platinum structure
Source: Adopted from Anglo American annual report (2020:208)
Mogalakwena mine
Situated in the Limpopo Province of South Africa, Mogalakwena mine was established in 1993 and operates under mining rights which span a total area of 137 square kilometres. The operations
Anglo American Corporation
Anglo American Platinum
79%
Mogalakwena Mine
Amandelbult complex
Twickenham Mine
Modikwa Platinum 50%
Mototolo
Kroondal 50%
Bokoni 49%
Unki Mine
Platinum Processing De Beers
Copper
Coal Iron Ore
Nickel and Manganese
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consist of five open cast mines which have an estimated life of mine which extends to 2060. In 2019 the mine produced 1 181 600 ounces of PGMs which accounted for a net sales revenue of R28 317 000 (Amplats integrated report, 2020:103). The mine employs 1800 employees and operates two concentrators.
Amandelbult
Also situated in Limpopo Province, this mine operates under mining rights covering 141 square kilometres. The entire operation consists of two shaft mines (Tumela and Dishaba) and three concentrators. According to the company’s estimates, Tumela mine has life of mine expectancy which extends to 2030 whilst Dishaba extends to approximately 2057 (Amplats integrated report, 2020:105). In 2020 the mine produced 608,100 ounces of PGM and accounted for 18 248 000 net sales revenue (Amplats integrated report, 2020:105).
Mototolo
Mototolo mine which is also located in Limpopo Province was acquired in 2018. The mine operates under two declining shafts, Lebowa and Borwa. The operations also include a concentrator which is used to separate the valuable concentrate from debris. 223 600 PGM ounces were produced in 2020, an 8% decline from the previous year (Amplats integrated report, 2020:106).
Twickenham mine
This operation which is located in Limpopo Province was placed on care and maintenance in 2016.
Unki Platinum Mine
Unki mine is located on the Great Dyke of Zimbabwe, near Shurugwi in the Midlands Province. The mine is an underground operation and has a life of mine expectation which could extend to 2060. In 2019, the mine employed over 2200 permanent and contract workers (Anglo American Platinum, 2019:2).
Modikwa Platinum Mine
Located 10km from Rustenburg in the North West Province, Modikwa Platinum Mine is a 50:50 joint venture with African Rainbow Minerals. The mine operates three decline shafts, three horizontal shafts and a concentrator.
Kroondal Platinum Mine
Kroondal is another 50:50 joint venture with Sibanye-Stillwater. Also located near Rustenburg in the North West Province of South Africa, the mine operates on 22 square kilometre piece of land and has an estimated life of mine which extends to 2032 and operates five decline shafts and two concentrators.
Marikana Platinum Mine