Our response to COVID-19

COVID-19 UPDATE

2 April 2019

Following the shutdown of operations on Thursday, 26 March 2020 in terms of South Africa’s national lockdown, DRDGOLD has considered various options to recommence limited operations to sustain infrastructure and soften the impact of the stoppage without exposing employees to increased risk.

Key considerations are the maintenance of hygiene, social distancing, screening capacity and the ability to provide medical assistance and isolation in the event of infections.

It is said that South Africa is lagging international infection trends by approximately two weeks. Hence, exposure to close-proximity situations – for example, commuting by way of public transport – is at this stage amongst the most important challenges informing the decision to start up at sites located in and around the Johannesburg metropolis.

At Far West Gold Recoveries (“FWGR”) in Carletonville social distancing associated with the commute is not nearly as complex. It is a much smaller footprint with employees living much closer to the operations. This situation, coupled with all the other preventative protocols in place, means the FWGR working environment poses a considerably lower risk of infection than, for example, the workspace of those involved in retail and public transport.

Chapter 2, section 11A and Annexure B, section B.22 of the Disaster Management Act Regulations issued by the Department of Co-operative Governance and Traditional Affairs (CoGTA) define gold mining and refining as essential services, exempt from the restrictions imposed by the lockdown announcement.

However, to move simply on a technical interpretation of the Act would be folly and for management to assume exclusive responsibility for the sustaining of health, jobs, social capital, the environment and the economy would be inappropriate in these circumstances.

This situation poses a challenge unlike anything any of us has ever experienced. Taking hard decisions is the essence of management, and invariably requires the weighing up of conflicting interests and finding a compromise of sorts. This time there is no balancing act – this situation requires that we defy the laws of physics, in that it forbids any compromise on the side of health and safety.

We have studied the guidelines to reduce the risk of infection and we have implemented protocols in terms of hygiene and social distancing which will allow us to responsibly conduct limited production at FWGR.

We have briefed our employees of the situation and have called for volunteers to resume work. We are encouraged that there are more volunteers than required at this stage – only 60% of the typical shift complement will be deployed at any given point in time.

A shared responsibility

However, the situation and its implications pose a burden beyond that which management could reasonably be expected to carry by itself. The State, as the representative will of the people of the country, and organised labour as the voice of its members, share this responsibility.

Consequently, on Tuesday, we wrote to the Department of Mineral Resources and Energy (DMRE), explaining the situation and requesting its endorsement. This afternoon we had a very constructive telephone engagement with the Department in which a number of specific issues were discussed in terms of assurances required and the content of protocols. This conversation has paved the way for the limited resumption of reclamation activities and we will build on it in the next few days.

We have also written to organised labour, NUM and AMCU, and have invited their nominated representatives to attend a presentation on the details of the deployment of staff, the risk protocols that are in place and the support offered to employees who present with symptoms of infection. We have also offered to take them on a site tour at FWGR to show exactly what has been put in place to manage the risk of infection.

We are confident that, in the spirit of collaboration and solidarity called for by South Africa’s President, we will receive the support we have requested.

Addressing the human hardship around us

DRDGOLD operates closer to visible human hardship than most entities in South Africa. We re-process mine dumps for gold. The communities living in proximity to our operations are amongst the poorest of the poor, as a result of which a large part of our social investment is focused on poverty alleviation.

Many individuals in these communities live on a per-day economic cycle, performing odd jobs and making only enough money for one day’s food. They are the people hardest hit by the lockdown.

We have therefore entered into an arrangement with Umsizi Sustainable Social Solutions, through a collaboration called Impophomo, to bring relief to these communities. DRDGOLD has made an initial seed investment of R200 000 in this initiative, and private funding of a further R100 000 has also been secured.

This will be applied directly to addressing the immediate needs of certain target communities in Johannesburg, Ekurhuleni and Merafong, leveraging the footprint that we established through our small-scale urban farming initiative in which upwards of 2 000 families participate. Impophomo will also seek to collaborate with social services and other NGOs in the target areas to bring relief.

In Carletonville, the staff of FWGR joined forces with SAVF, a family care organisation, to provide much needed soap, sanitizers and blankets. Security personnel at both operations have been asked to keep their eyes peeled for instances of hardship, which we will try to address through Impophomo.

DRDGOLD has also purchased 35 high-care beds at a total cost of R600 000 in a programme launched by the South African Medical and Education (SAME) Foundation for wards that are being set up for COVID-10 patients at the Chris Hani Baragwanath Hospital in Soweto, Johannesburg.

The importance of preserving the business

Preserving our business by carefully and intelligently managing the impacts of COVID-19 is important.

We are working flat-out to find a solution for the logistical challenges at the Johannesburg-based operations. Many employees there make use of own transport and the commuting service owned and operated by organised labour which we set up several years ago could also feature in providing the desired outcome. We hope to have bedded down a plan in this regard early next week.

There is a lot at stake – the safety and health of our employees and society, employees’ jobs, the savings of hundreds of investors, the South African economy and, ultimately, social stability.

By taking the right decisions at the right time based on solid data, we give ourselves the best chance as a nation of staying on our feet through this crisis. It is the worst possible time for indecision through fear or for political posturing. Ideology and ambition should, just for a short time, play second fiddle to national consensus, collaboration and resolve.

We are hopeful of continued support from the DMRE and from organised labour.

Niël Pretorius

Chief Executive Officer


BEDS FOR CHRIS HANI BARAGWANATH HOSPITAL

DRDGOLD has made a R600 000 contribution towards the supply of 40 electronic beds for the COVID-19 isolation area in the Medical Acute Care Unit and the quarantine/isolation ward at the Chris Hani Baragwanath Hospital in Soweto, Johannesburg.

The donation, made through the South African Medical and Education (SAME) Foundation, covered the cost of 25 three-movement beds and 10 five-movement beds, essential in the treatment of respiratory conditions such as COVID-19.

2 April 2020

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COVID-19 UPDATE: DRDGOLD’S RESPONSE TO THE NATIONAL LOCKDOWN

Early this morning I watched reports on BBC news regarding the escalation of the Coronavirus around the world. In many countries, the infection rate has overtaken the capacity of national health services.

 

DRDGOLD’s priority in dealing with COVID-19 is the health and safety of our employees.

Doctors and nurses are under immense pressure and are becoming infected and dying. In some countries, people seem oblivious to the risk, the fact that health services are collapsing notwithstanding. Their situation may soon become irreversible.

This is the situation that we need to avoid at all costs and the measures that South Africa’s President announced last night give us the best possible chance of doing so. Only by responding positively to his call will we avoid a catastrophe similar to what has befallen those that have left it too late.

It is important however that we don’t panic and that we come out in full support of the measures President Ramaphosa announced to curb the spread of the virus.

To this end, we will implement measures over the next few days to temporarily halt production and to place our operations in a state of care and maintenance whilst maintaining essential services.

We will do what is required to secure our assets, prevent any harm to the environment and ensure that we can start operations up again as seamlessly as we possibly can, once the lockdown is lifted.

We are now working toward a completely different set of goals than that which we set out to achieve at the beginning of the year. Our priorities now are staying healthy, keeping our families and loved ones safe and preserving our business.

It is essential that we have a business to return to, and more importantly, that we all return to our posts once this is over.  We are in a position to do this, having built up a solid cash position over the last 12 months.

I have called upon my colleagues throughout the company not to panic; rather, to be innovative, put the right plans in place, give their implementation their full support and continue to set the right example by demonstrating leadership.

It goes without saying that we will continue to encourage the practice of sound hygiene and social distancing.

All the best.

Niël Pretorius
Chief Executive Officer

24 March 2020

 


COVID-19:
DRDGOLD'S POSITION

Following the declaration of COVID-19 as a global pandemic by the World Health Organisation (WHO), South Africa's President has declared a National State of Disaster.

DRDGOLD and Minerals Council South Africa DRDGOLD Minerals Council South Africa

 

DRDGOLD's priority in dealing with COVID-19 is the health and safety of our employees.

Secondly, it is important we do all we can to preserve our business.

The Minerals Council South Africa, of which DRDGOLD is a member, has taken an important lead in creating awareness within South Africa's mining industry of the virus, its symptoms and prevention measures.

Information prepared by the Minerals Council, sourced from the WHO and National Institute for Communicable Diseases and provided to its members, has been distributed throughout DRDGOLD's workforce.

 

Updating information, formulated with authoritative input from global and national authorities, will continue to be provided as this becomes available.

 

In addition:

  • employees are being encouraged to practice regular, thorough hand washing and responsible hygiene in terms of coughing and sneezing, and to avoid unnecessary physical contact;
  • employees with a dry cough and fever have been requested to stay at home and seek further advice, in the first instance, from their doctor by telephone or email;
  • employees will be offered free 'flu vaccinations when these become available at the beginning of April;
  • essential visitors to our premises are being requested, also, to comply with the personal and workplace hygiene precautions we have put in place;
  • business travel by employees both locally and internationally has been suspended;
  • wherever possible, business meetings are being conducted electronically;
  • arrangements have been made with both local and international suppliers of consumables such as parts and reagents to maintain stability of supply as far as possible.

Should DRDGOLD become aware of a COVID-19 "index" case – an individual who tests positive for the virus – within its workforce, the relevant regulators will be notified immediately and the company will comply fully with all their requirements.

The Minerals Council information distributed within DRDGOLD can be accessed on the Minerals Council's website.

Niël Pretorius
Chief Executive Officer

17 March 2020