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DRD SDR2009_24NovCover 112509 305 PM Page a
Sustainable Development
Report 2009
DRD SDR2009_24NovCover 112509 305 PM Page b
Contents 2 Corporate profile
4 Key aspects of DRDGOLDrsquos business
6 Letter from the CEO
8 Governance
10 Economic performance
14 Safety and health
22 Employment and human rights
28 Community development
34 Environmental performance
46 GRI index of contents
48 Compliance with the Mining Charter
49 Glossary of terms acronyms and abbreviations
51 Feedback form
IBC Contact details and administration
Scope of report This is DRDGOLDrsquos second annual Sustainable Development Report presented in conjunction
with the companyrsquos Annual Report which is available both in a printed format and on the
website at wwwdrdgoldcom
The economic social and environmental aspects of DRDGOLDrsquos operations in the Gauteng and
North West provinces of South Africa are covered in this report The information presented is
for the 2009 financial year from 1 July 2008 to 30 June 2009 although both historical and
forward-looking data are provided for information purposes
This report has been compiled in line with the G3 guidelines of the Global Reporting Initiative
(GRI) and the South African Mining Charter For this report DRDGOLD has again declared a
C level of reporting in accordance with GRIrsquos requirements for a self-declaration in this respect
For further information on sustainability reporting at DRDGOLD please contact
Barry de Blocq
Tel +27 11 219 8700
Email barrydeblocqzadrdgoldcom
DRD SDR2009_25Nov 112509 259 PM Page 1
1 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 259 PM Page 2
DRDGOLD Sustainable Development Report 2009 2
Corporate profile
Carletonville
Blyvoor
ErgoGold
Crown ERPM
Klerksdorp
Potchefstroom
Vereeniging
Johannesburg Benoni
Nigel
Brakpan
0 10
kilometres
20
SOUTH AFRICA
Klerksdorp
Carletonville Pretoria
Johannesburg
Durban
Port Elizabeth
East London
Bloemfontein
Cape Town
GautengNorth West
DRDGOLD Limited (DRDGOLD) is a medium-sized unhedged gold producer South Africarsquos fourthshy
largest In 2009 the company produced 247 690 ounces and declared Mineral Resources of
564 million ounces and Ore Reserves of 60 million ounces As at 30 June 2009 DRDGOLD
employed 6 715 people comprising 4 869 employees and 1 846 contractors
DRD SDR2009_25Nov 112509 259 PM Page 3
DRDGOLD Sustainable Development Report 2009 3
The companyrsquos 74-owned operating subsidiary is DRDGOLD
South African Operations (Pty) Limited (DRDGOLD SA) Black
economic empowerment partner Khumo Gold SPV (Pty) Limited
(Khumo Gold) holds 20 of DRDGOLD SA and the DRDSA
Empowerment Trust 6
After disposing of its entire interest in Australian gold miner
Emperor Mines Limited in October 2007 DRDGOLDrsquos new
management has aimed at maintaining a healthy mix of assets To
this end the focus has been on
improving the potential of existing South African underground
and retreatment operations and
expanding surface retreatment activity
Although management continues to be bullish about goldrsquos
prospects in the medium to longer term the team has taken careful
stock of current global economic difficulties and the growing
challenges associated with deep-level gold mining In view of this
DRDGOLD has opted to chart a conservative path forward
The operations which are owned and run through DRDGOLD SA
are Blyvooruitzicht Gold Mining Company Limited (Blyvoor) East
Rand Proprietary Mines Limited (ERPM) Crown Gold Recoveries
(Pty) Limited (Crown) Ergo Mining (Pty) Limited (Ergo) and
DRDGOLD structure
ErgoGold (formerly Elsburg Gold Mining Joint Venture) At present
56 of production comes from surface retreatment and this is set
to increase
Stock exchange information DRDGOLD has its primary listing on the JSE Limited and its
secondary listing on the Nasdaq Capital Market At year-end the
company had 378 001 303 ordinary shares in issue and a market
capitalisation of R23 billion ($2869 million)
United States 72
South Africa 15
Europe 10
Other countries 3
Geo
grap
hica
l ana
lysi
s of
shar
ehol
ders
ndash 3
0 Ju
ne 2
009
DRDGOLD
KHUMO GOLD DRDSA
Empowerment Trust
DRDGOLD SA
BLYVOOR CROWN
ERGO JV
ERPM
ERGOGOLD
620
100100100
5065 35
74
JSE DRD Nasdaq DROOY
DRD SDR2009_25Nov 112509 259 PM Page 4
DRDGOLD Sustainable Development Report 2009 4
Key aspects of DRDGOLDrsquos business and implications for sustainable development
Exploration DRDGOLDrsquos exploration activities are focused on the extension of existing orebodies and the identification of new orebodies both at existing and undeveloped sites Once an orebody has been discovered exploration is expanded and intensified in order to enable clearer definition of the orebody and the portions with the potential to be mined
Sustainability issues
bull Effect on biodiversity should the exploration occur in restricted areas
bull Consultation and engagement with communities
Surface retreatment DRDGOLDrsquos Crown ERPM and ErgoGold operations retreat tailings (sand and slime) from non-operational sites Retreatment also forms part of Blyvoorrsquos operations
In general surface material has a history of depositions occurring at different stages This means that there are grade variations associated with improvements in plant recovery over the period of time in question
Sand is reclaimed using mechanical front-end loaders and re-pulped with water Slime is reclaimed using high pressure water monitoring guns
Mining DRDGOLDrsquos Blyvoor mine and ERPM (until the halting of underground operations) access the orebody through underground mining The shaft system comprises vertical and sub-incline shafts which are used for the conveyance of personnel pumping and hoisting of mined ore and waste
Sustainability issues
bull Safety and health of employees and contractors
bull Fair employment practices training and development
bull Careful use of resources ndash water energy and other natural resources ndash and commitment to recycling
bull Preventing pollution particularly with respect to water and dust
bull Land disturbance
Transport of material Underground ore is transported to the plant via conveyer belts and trucks
With regard to retreated material the re-pulped sand and slime is pumped to the plant
Production 2009 Surface retreatment 56 Surfaceunderground Underground splitoperations 44
DRD SDR2009_25Nov 112509 259 PM Page 5
DRDGOLD Sustainable Development Report 2009 5
Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage
The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp
With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal
After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars
Sustainability issues
bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment
to recycling bull Managing and handling cyanide bull Lightening carbon footprint
Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price
Sustainability issues
bull Reducing emissions preventing pollution
Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis
Sustainability issues
bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure
DRD SDR2009_25Nov 112509 300 PM Page 6
DRDGOLD Sustainable Development Report 2009 6
Letter from the CEO
Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect
myriad stakeholders employees unions communities investors
government and regulators non-governmental organisations
suppliers contractors and members of the general public We
also acknowledge that as a South African company we need to play
a role in transforming the economy and society to redress the
imbalances of the past This ranges from developing employees
from the ranks of the previously disadvantaged to supporting
community projects that will create sustainable livelihoods
This was a challenging year for the mining industry in South Africa
in general and at DRDGOLD we experienced some serious
operational difficulties Safety and risk considerations meant that
we had no choice but to stop underground mining at ERPM while
the loss of high-grade panels at Blyvoor combined with the
strengthening of the rand and an increase in the cost of electricity
of 33 resulted in our starting the process of right-sizing Blyvoor
shortly after year-end These decisions were not taken either
lightly or easily We know only too acutely that each of our
employees supports a number of dependants and that job losses
have a knock-on effect in the surrounding communities
However had we not acted as we did we would have put lives in
danger and the companyrsquos future in jeopardy with potentially far
greater negative results
Certainly it is at times like these that sustainability assumes even
greater significance It demonstrates the value of people gaining
the skills to ensure lifelong employment and the importance of the
development and diversification of the local economy so that
communities can continue and prosper when mining activities
decrease or stop completely In this respect we are proud of the
Ekurhuleni Business Development Academy (EBDA) which we have
established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report
Safety issues Of all the aspects of sustainability that we cover in this report
safety is the most important It is with deep regret that we must
advise that five people died in work-related incidents at DRDGOLD
operations during the 2009 financial year We extend our
condolences to the families friends and colleagues of those who
lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa
(4 September 2008) and Annanias Timbe (8 October 2008) at
Blyvoor and Pieter Jonker and Fernando Vate both on
19 September 2008 at ERPM
Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455
There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor
DRD SDR2009_25Nov 112509 300 PM Page 7
DRDGOLD Sustainable Development Report 2009 7
followed by the other DRDGOLD operations We trust that this will
lead to further improvements in our safety performance in the
2010 financial year
Progress with transformation We are pleased to have made further progress in terms of
meeting the requirements of the Mining Charter At Blyvoor the
percentage of historically disadvantaged South Africans (HDSAs)
in management rose from 18 to 25 Crown reached 33 in
2009 At 93 Crown is close to meeting the Mining Charterrsquos
target of women making up 10 of the workforce while at
Blyvoor women comprise 75 of the employee complement up
from 65 last year
We are committed to nurturing talent within the company through
learnerships internships and tertiary education programmes
During 2009 we ran a very successful group-wide pilot
Junior Leadership Programme which combined theoretical with
practical study
Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an
environmental threat and it is a challenge that DRDGOLD is facing
together with several other mining companies Cost-effective
sustainable solutions need to be found Together with those
players DRDGOLD participates in two Section 21 companies the
Western Basin Environmental Corporation and the Central Basin
Environmental Corporation We are hopeful that this consultative
approach will find long-term workable solutions These companies
have commissioned Western Utilities Corporation a wholly owned
subsidiary of AIM-listed Watermark Global plc to develop a holistic
integrated plan Progress is being made towards the establishment
of large-scale water treatment plants with the right technology to
treat AMD to produce both drinking and industrial water More
detailed information on this can be found in the Environment
section of this report
Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have
aligned with the requirements of the Global Reporting Initiativersquos
G3 guidelines We have declared a C level of reporting for the
2009 financial year
We acknowledge that we still have a long way to go before
we meet many of the GRI requirementsWhat is important however
is that we have set these goals for ourselves and are moving in
the right direction The boardrsquos establishment of the Transformation
and Sustainable Development Committee towards the end of the
last financial year is further evidence of our commitment With an
independent non-executive chairman at its helm this committee is
charged with ensuring that DRDGOLD conducts its business in a
manner conducive to the attainment of internationally acceptable
sustainability standards and with promoting transformation
There is a feedback form at the back of this report and we would
appreciate hearing from our stakeholders Let us know what you
think about this report and where we can improve
Nieumll Pretorius
Chief Executive Officer
16 September 2009
DRD SDR2009_25Nov 112509 300 PM Page 8
DRDGOLD Sustainable Development Report 2009 8
Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates
A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34
Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting
As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules
Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)
The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008
The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and
conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards
The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009
Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee
Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter
DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment
The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest
The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage
Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings
Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group
An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services
While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group
DRD SDR2009_25Nov 112509 300 PM Page 9
DRDGOLD Sustainable Development Report 2009 9
Directors and employees are expected to treat all information
pertaining to the group which is not in the public domain in the
strictest confidence and may not divulge such information to any
third party without permission even after the termination of their
services with the group
The company has an anonymous whistle-blower hotline to deal
with complaints from within or outside the company and the
Group Risk Manager provides the Audit Committee with a regular
report on the whistle-blowing programme
Risk management Responsibility for risk management at DRDGOLD starts with the
Board of Directors The overall objective of the Risk Committee is to
assist the board in the discharge of its duties relating to risk
management and control responsibilities assurance issues health
safety and environmental compliance and the monitoring and
reporting of all these matters Responsibility for the quality
integrity and reliability of the groups risk management rests with
the Risk Committee which facilitates communication between the
board the Audit Committee internal auditors and other parties
engaged in risk management activities
The Risk Committee meets every quarter and reports back to the
board Additional ad hoc meetings may be arranged as and when
required Certain members of executive management are invited to
attend Risk Committee meetings on a regular basis including the
Group Risk Manager the Group Financial Manager and the Group
Legal Counsel
The Risk Committee ensures that
an effective risk management programme is implemented and
maintained
risk management awareness is promoted among all employees
risk programmes (financinginsurance) adequately protect the
company against catastrophic risks
regular risk assessments are conducted
the total cost of risk in the long term is reduced
the protection of DRDGOLDs assets is promoted throughout
the group
the health safety and well-being of all stakeholders is
improved and
DRDGOLDs activities are carried out in such a way that the
safety and health of employees is ensured
In addition to strategic and corporate risks the committee also
reviews the effectiveness of the operational risk programmes A
heat map which brings together all the risks that the group faces
is tabled at every meeting
It is widely recognised that integrating risk management
philosophy and practice into the culture of the organisation is an
ongoing process In order to be effective it must be a continuous
dynamic and developing process that addresses risk across the
spectrum ndash from strategic to operational risk Thus a variety of
surveys benchmarks reviews and activities are conducted
throughout the year and these are the building blocks of the risk
management programme
This detailed risk management programme has been in place at
DRDGOLD for a number of years and its effectiveness has ensured
that it forms an integral part of the management of the company
The risk register contains all the relevant information from across
the group and this is updated on a quarterly basis
The process of conducting hazard identification and risk assessment
for the operations is based on
baseline assessment ndash covering the whole operation in a
systematic way in respect of all risks
issues-based assessment ndash specific assessments carried out
prior to the start of an activity and
continuous assessment ndash health safety and environmental
assessments form part of daily activities
DRDGOLD staff members involved in operational risk management
use risk management information and detailed analyses to assist
in decision-making DRDGOLD therefore employs the latest
technology and information wherever required
The system to manage risk involves all significant business and
operational risks which could undermine the achievement of
business objectives and the preservation of shareholder value
The significant risks facing DRDGOLD including those at an
operational level have been identified People have been assigned
to each risk and the results of their work to improve controls are
reviewed by senior management through regular risk meetings
In addition to the above initiatives DRDGOLD also employs thirdshy
party consultants to benchmark its operations against other mining
operations throughout South Africa and more than 300 different
mining companies worldwide
Communication with stakeholders DRDGOLD gives substance to its commitment to transparency
through the implementation of an integrated and sustained
programme of communication directed at its various stakeholders
These include employees unions communities government and
regulators non-governmental organisations suppliers contractors
customers and members of the public
Effective two-way communication with the communities within
which it operates is an area of growing importance to the group
While increasingly much of this communication is required by
regulation and statute and takes the form of formal consultation
with interested and affected parties operational management has
come to recognise the value of community understanding of and
support for managementrsquos actions and of the role that effective
communication plays in securing these
Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in
respect of non-compliance with laws or regulations The company
is engaged in some legal actions the details of which appear on
pages 113 to 114 of the 2009 Annual Report
DRD SDR2009_25Nov 112509 300 PM Page 10
Economic performance
As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people
employees and their dependants investors suppliers and members of the communities
surrounding the companyrsquos operations
The companyrsquos strategy in the short and medium term is to enhance shareholder value by
reducing risk
controlling costs
managing margins and
taking a disciplined approach to growth
One of the most significant operational developments for DRDGOLD in 2009 was the progress
made in shifting the balance of its production towards lower-risk and less costly surface
retreatment operations
During the year under review the company rejoined the Chamber of Mines of South Africa as an
advocacy member The chamber is a voluntary membership private sector employer organisation
and is the principal advocate of major policy positions endorsed by the mining employers and
represents these to various organs of South African national and provincial governments and to
other relevant policy-making and opinion-forming entities both within the country and abroad
The chamber also works closely with the various employee organisations in formulating these
positions where appropriate
DRDGOLD Sustainable Development Report 2009 10
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page b
Contents 2 Corporate profile
4 Key aspects of DRDGOLDrsquos business
6 Letter from the CEO
8 Governance
10 Economic performance
14 Safety and health
22 Employment and human rights
28 Community development
34 Environmental performance
46 GRI index of contents
48 Compliance with the Mining Charter
49 Glossary of terms acronyms and abbreviations
51 Feedback form
IBC Contact details and administration
Scope of report This is DRDGOLDrsquos second annual Sustainable Development Report presented in conjunction
with the companyrsquos Annual Report which is available both in a printed format and on the
website at wwwdrdgoldcom
The economic social and environmental aspects of DRDGOLDrsquos operations in the Gauteng and
North West provinces of South Africa are covered in this report The information presented is
for the 2009 financial year from 1 July 2008 to 30 June 2009 although both historical and
forward-looking data are provided for information purposes
This report has been compiled in line with the G3 guidelines of the Global Reporting Initiative
(GRI) and the South African Mining Charter For this report DRDGOLD has again declared a
C level of reporting in accordance with GRIrsquos requirements for a self-declaration in this respect
For further information on sustainability reporting at DRDGOLD please contact
Barry de Blocq
Tel +27 11 219 8700
Email barrydeblocqzadrdgoldcom
DRD SDR2009_25Nov 112509 259 PM Page 1
1 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 259 PM Page 2
DRDGOLD Sustainable Development Report 2009 2
Corporate profile
Carletonville
Blyvoor
ErgoGold
Crown ERPM
Klerksdorp
Potchefstroom
Vereeniging
Johannesburg Benoni
Nigel
Brakpan
0 10
kilometres
20
SOUTH AFRICA
Klerksdorp
Carletonville Pretoria
Johannesburg
Durban
Port Elizabeth
East London
Bloemfontein
Cape Town
GautengNorth West
DRDGOLD Limited (DRDGOLD) is a medium-sized unhedged gold producer South Africarsquos fourthshy
largest In 2009 the company produced 247 690 ounces and declared Mineral Resources of
564 million ounces and Ore Reserves of 60 million ounces As at 30 June 2009 DRDGOLD
employed 6 715 people comprising 4 869 employees and 1 846 contractors
DRD SDR2009_25Nov 112509 259 PM Page 3
DRDGOLD Sustainable Development Report 2009 3
The companyrsquos 74-owned operating subsidiary is DRDGOLD
South African Operations (Pty) Limited (DRDGOLD SA) Black
economic empowerment partner Khumo Gold SPV (Pty) Limited
(Khumo Gold) holds 20 of DRDGOLD SA and the DRDSA
Empowerment Trust 6
After disposing of its entire interest in Australian gold miner
Emperor Mines Limited in October 2007 DRDGOLDrsquos new
management has aimed at maintaining a healthy mix of assets To
this end the focus has been on
improving the potential of existing South African underground
and retreatment operations and
expanding surface retreatment activity
Although management continues to be bullish about goldrsquos
prospects in the medium to longer term the team has taken careful
stock of current global economic difficulties and the growing
challenges associated with deep-level gold mining In view of this
DRDGOLD has opted to chart a conservative path forward
The operations which are owned and run through DRDGOLD SA
are Blyvooruitzicht Gold Mining Company Limited (Blyvoor) East
Rand Proprietary Mines Limited (ERPM) Crown Gold Recoveries
(Pty) Limited (Crown) Ergo Mining (Pty) Limited (Ergo) and
DRDGOLD structure
ErgoGold (formerly Elsburg Gold Mining Joint Venture) At present
56 of production comes from surface retreatment and this is set
to increase
Stock exchange information DRDGOLD has its primary listing on the JSE Limited and its
secondary listing on the Nasdaq Capital Market At year-end the
company had 378 001 303 ordinary shares in issue and a market
capitalisation of R23 billion ($2869 million)
United States 72
South Africa 15
Europe 10
Other countries 3
Geo
grap
hica
l ana
lysi
s of
shar
ehol
ders
ndash 3
0 Ju
ne 2
009
DRDGOLD
KHUMO GOLD DRDSA
Empowerment Trust
DRDGOLD SA
BLYVOOR CROWN
ERGO JV
ERPM
ERGOGOLD
620
100100100
5065 35
74
JSE DRD Nasdaq DROOY
DRD SDR2009_25Nov 112509 259 PM Page 4
DRDGOLD Sustainable Development Report 2009 4
Key aspects of DRDGOLDrsquos business and implications for sustainable development
Exploration DRDGOLDrsquos exploration activities are focused on the extension of existing orebodies and the identification of new orebodies both at existing and undeveloped sites Once an orebody has been discovered exploration is expanded and intensified in order to enable clearer definition of the orebody and the portions with the potential to be mined
Sustainability issues
bull Effect on biodiversity should the exploration occur in restricted areas
bull Consultation and engagement with communities
Surface retreatment DRDGOLDrsquos Crown ERPM and ErgoGold operations retreat tailings (sand and slime) from non-operational sites Retreatment also forms part of Blyvoorrsquos operations
In general surface material has a history of depositions occurring at different stages This means that there are grade variations associated with improvements in plant recovery over the period of time in question
Sand is reclaimed using mechanical front-end loaders and re-pulped with water Slime is reclaimed using high pressure water monitoring guns
Mining DRDGOLDrsquos Blyvoor mine and ERPM (until the halting of underground operations) access the orebody through underground mining The shaft system comprises vertical and sub-incline shafts which are used for the conveyance of personnel pumping and hoisting of mined ore and waste
Sustainability issues
bull Safety and health of employees and contractors
bull Fair employment practices training and development
bull Careful use of resources ndash water energy and other natural resources ndash and commitment to recycling
bull Preventing pollution particularly with respect to water and dust
bull Land disturbance
Transport of material Underground ore is transported to the plant via conveyer belts and trucks
With regard to retreated material the re-pulped sand and slime is pumped to the plant
Production 2009 Surface retreatment 56 Surfaceunderground Underground splitoperations 44
DRD SDR2009_25Nov 112509 259 PM Page 5
DRDGOLD Sustainable Development Report 2009 5
Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage
The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp
With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal
After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars
Sustainability issues
bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment
to recycling bull Managing and handling cyanide bull Lightening carbon footprint
Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price
Sustainability issues
bull Reducing emissions preventing pollution
Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis
Sustainability issues
bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure
DRD SDR2009_25Nov 112509 300 PM Page 6
DRDGOLD Sustainable Development Report 2009 6
Letter from the CEO
Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect
myriad stakeholders employees unions communities investors
government and regulators non-governmental organisations
suppliers contractors and members of the general public We
also acknowledge that as a South African company we need to play
a role in transforming the economy and society to redress the
imbalances of the past This ranges from developing employees
from the ranks of the previously disadvantaged to supporting
community projects that will create sustainable livelihoods
This was a challenging year for the mining industry in South Africa
in general and at DRDGOLD we experienced some serious
operational difficulties Safety and risk considerations meant that
we had no choice but to stop underground mining at ERPM while
the loss of high-grade panels at Blyvoor combined with the
strengthening of the rand and an increase in the cost of electricity
of 33 resulted in our starting the process of right-sizing Blyvoor
shortly after year-end These decisions were not taken either
lightly or easily We know only too acutely that each of our
employees supports a number of dependants and that job losses
have a knock-on effect in the surrounding communities
However had we not acted as we did we would have put lives in
danger and the companyrsquos future in jeopardy with potentially far
greater negative results
Certainly it is at times like these that sustainability assumes even
greater significance It demonstrates the value of people gaining
the skills to ensure lifelong employment and the importance of the
development and diversification of the local economy so that
communities can continue and prosper when mining activities
decrease or stop completely In this respect we are proud of the
Ekurhuleni Business Development Academy (EBDA) which we have
established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report
Safety issues Of all the aspects of sustainability that we cover in this report
safety is the most important It is with deep regret that we must
advise that five people died in work-related incidents at DRDGOLD
operations during the 2009 financial year We extend our
condolences to the families friends and colleagues of those who
lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa
(4 September 2008) and Annanias Timbe (8 October 2008) at
Blyvoor and Pieter Jonker and Fernando Vate both on
19 September 2008 at ERPM
Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455
There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor
DRD SDR2009_25Nov 112509 300 PM Page 7
DRDGOLD Sustainable Development Report 2009 7
followed by the other DRDGOLD operations We trust that this will
lead to further improvements in our safety performance in the
2010 financial year
Progress with transformation We are pleased to have made further progress in terms of
meeting the requirements of the Mining Charter At Blyvoor the
percentage of historically disadvantaged South Africans (HDSAs)
in management rose from 18 to 25 Crown reached 33 in
2009 At 93 Crown is close to meeting the Mining Charterrsquos
target of women making up 10 of the workforce while at
Blyvoor women comprise 75 of the employee complement up
from 65 last year
We are committed to nurturing talent within the company through
learnerships internships and tertiary education programmes
During 2009 we ran a very successful group-wide pilot
Junior Leadership Programme which combined theoretical with
practical study
Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an
environmental threat and it is a challenge that DRDGOLD is facing
together with several other mining companies Cost-effective
sustainable solutions need to be found Together with those
players DRDGOLD participates in two Section 21 companies the
Western Basin Environmental Corporation and the Central Basin
Environmental Corporation We are hopeful that this consultative
approach will find long-term workable solutions These companies
have commissioned Western Utilities Corporation a wholly owned
subsidiary of AIM-listed Watermark Global plc to develop a holistic
integrated plan Progress is being made towards the establishment
of large-scale water treatment plants with the right technology to
treat AMD to produce both drinking and industrial water More
detailed information on this can be found in the Environment
section of this report
Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have
aligned with the requirements of the Global Reporting Initiativersquos
G3 guidelines We have declared a C level of reporting for the
2009 financial year
We acknowledge that we still have a long way to go before
we meet many of the GRI requirementsWhat is important however
is that we have set these goals for ourselves and are moving in
the right direction The boardrsquos establishment of the Transformation
and Sustainable Development Committee towards the end of the
last financial year is further evidence of our commitment With an
independent non-executive chairman at its helm this committee is
charged with ensuring that DRDGOLD conducts its business in a
manner conducive to the attainment of internationally acceptable
sustainability standards and with promoting transformation
There is a feedback form at the back of this report and we would
appreciate hearing from our stakeholders Let us know what you
think about this report and where we can improve
Nieumll Pretorius
Chief Executive Officer
16 September 2009
DRD SDR2009_25Nov 112509 300 PM Page 8
DRDGOLD Sustainable Development Report 2009 8
Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates
A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34
Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting
As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules
Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)
The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008
The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and
conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards
The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009
Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee
Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter
DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment
The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest
The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage
Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings
Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group
An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services
While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group
DRD SDR2009_25Nov 112509 300 PM Page 9
DRDGOLD Sustainable Development Report 2009 9
Directors and employees are expected to treat all information
pertaining to the group which is not in the public domain in the
strictest confidence and may not divulge such information to any
third party without permission even after the termination of their
services with the group
The company has an anonymous whistle-blower hotline to deal
with complaints from within or outside the company and the
Group Risk Manager provides the Audit Committee with a regular
report on the whistle-blowing programme
Risk management Responsibility for risk management at DRDGOLD starts with the
Board of Directors The overall objective of the Risk Committee is to
assist the board in the discharge of its duties relating to risk
management and control responsibilities assurance issues health
safety and environmental compliance and the monitoring and
reporting of all these matters Responsibility for the quality
integrity and reliability of the groups risk management rests with
the Risk Committee which facilitates communication between the
board the Audit Committee internal auditors and other parties
engaged in risk management activities
The Risk Committee meets every quarter and reports back to the
board Additional ad hoc meetings may be arranged as and when
required Certain members of executive management are invited to
attend Risk Committee meetings on a regular basis including the
Group Risk Manager the Group Financial Manager and the Group
Legal Counsel
The Risk Committee ensures that
an effective risk management programme is implemented and
maintained
risk management awareness is promoted among all employees
risk programmes (financinginsurance) adequately protect the
company against catastrophic risks
regular risk assessments are conducted
the total cost of risk in the long term is reduced
the protection of DRDGOLDs assets is promoted throughout
the group
the health safety and well-being of all stakeholders is
improved and
DRDGOLDs activities are carried out in such a way that the
safety and health of employees is ensured
In addition to strategic and corporate risks the committee also
reviews the effectiveness of the operational risk programmes A
heat map which brings together all the risks that the group faces
is tabled at every meeting
It is widely recognised that integrating risk management
philosophy and practice into the culture of the organisation is an
ongoing process In order to be effective it must be a continuous
dynamic and developing process that addresses risk across the
spectrum ndash from strategic to operational risk Thus a variety of
surveys benchmarks reviews and activities are conducted
throughout the year and these are the building blocks of the risk
management programme
This detailed risk management programme has been in place at
DRDGOLD for a number of years and its effectiveness has ensured
that it forms an integral part of the management of the company
The risk register contains all the relevant information from across
the group and this is updated on a quarterly basis
The process of conducting hazard identification and risk assessment
for the operations is based on
baseline assessment ndash covering the whole operation in a
systematic way in respect of all risks
issues-based assessment ndash specific assessments carried out
prior to the start of an activity and
continuous assessment ndash health safety and environmental
assessments form part of daily activities
DRDGOLD staff members involved in operational risk management
use risk management information and detailed analyses to assist
in decision-making DRDGOLD therefore employs the latest
technology and information wherever required
The system to manage risk involves all significant business and
operational risks which could undermine the achievement of
business objectives and the preservation of shareholder value
The significant risks facing DRDGOLD including those at an
operational level have been identified People have been assigned
to each risk and the results of their work to improve controls are
reviewed by senior management through regular risk meetings
In addition to the above initiatives DRDGOLD also employs thirdshy
party consultants to benchmark its operations against other mining
operations throughout South Africa and more than 300 different
mining companies worldwide
Communication with stakeholders DRDGOLD gives substance to its commitment to transparency
through the implementation of an integrated and sustained
programme of communication directed at its various stakeholders
These include employees unions communities government and
regulators non-governmental organisations suppliers contractors
customers and members of the public
Effective two-way communication with the communities within
which it operates is an area of growing importance to the group
While increasingly much of this communication is required by
regulation and statute and takes the form of formal consultation
with interested and affected parties operational management has
come to recognise the value of community understanding of and
support for managementrsquos actions and of the role that effective
communication plays in securing these
Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in
respect of non-compliance with laws or regulations The company
is engaged in some legal actions the details of which appear on
pages 113 to 114 of the 2009 Annual Report
DRD SDR2009_25Nov 112509 300 PM Page 10
Economic performance
As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people
employees and their dependants investors suppliers and members of the communities
surrounding the companyrsquos operations
The companyrsquos strategy in the short and medium term is to enhance shareholder value by
reducing risk
controlling costs
managing margins and
taking a disciplined approach to growth
One of the most significant operational developments for DRDGOLD in 2009 was the progress
made in shifting the balance of its production towards lower-risk and less costly surface
retreatment operations
During the year under review the company rejoined the Chamber of Mines of South Africa as an
advocacy member The chamber is a voluntary membership private sector employer organisation
and is the principal advocate of major policy positions endorsed by the mining employers and
represents these to various organs of South African national and provincial governments and to
other relevant policy-making and opinion-forming entities both within the country and abroad
The chamber also works closely with the various employee organisations in formulating these
positions where appropriate
DRDGOLD Sustainable Development Report 2009 10
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 259 PM Page 1
1 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 259 PM Page 2
DRDGOLD Sustainable Development Report 2009 2
Corporate profile
Carletonville
Blyvoor
ErgoGold
Crown ERPM
Klerksdorp
Potchefstroom
Vereeniging
Johannesburg Benoni
Nigel
Brakpan
0 10
kilometres
20
SOUTH AFRICA
Klerksdorp
Carletonville Pretoria
Johannesburg
Durban
Port Elizabeth
East London
Bloemfontein
Cape Town
GautengNorth West
DRDGOLD Limited (DRDGOLD) is a medium-sized unhedged gold producer South Africarsquos fourthshy
largest In 2009 the company produced 247 690 ounces and declared Mineral Resources of
564 million ounces and Ore Reserves of 60 million ounces As at 30 June 2009 DRDGOLD
employed 6 715 people comprising 4 869 employees and 1 846 contractors
DRD SDR2009_25Nov 112509 259 PM Page 3
DRDGOLD Sustainable Development Report 2009 3
The companyrsquos 74-owned operating subsidiary is DRDGOLD
South African Operations (Pty) Limited (DRDGOLD SA) Black
economic empowerment partner Khumo Gold SPV (Pty) Limited
(Khumo Gold) holds 20 of DRDGOLD SA and the DRDSA
Empowerment Trust 6
After disposing of its entire interest in Australian gold miner
Emperor Mines Limited in October 2007 DRDGOLDrsquos new
management has aimed at maintaining a healthy mix of assets To
this end the focus has been on
improving the potential of existing South African underground
and retreatment operations and
expanding surface retreatment activity
Although management continues to be bullish about goldrsquos
prospects in the medium to longer term the team has taken careful
stock of current global economic difficulties and the growing
challenges associated with deep-level gold mining In view of this
DRDGOLD has opted to chart a conservative path forward
The operations which are owned and run through DRDGOLD SA
are Blyvooruitzicht Gold Mining Company Limited (Blyvoor) East
Rand Proprietary Mines Limited (ERPM) Crown Gold Recoveries
(Pty) Limited (Crown) Ergo Mining (Pty) Limited (Ergo) and
DRDGOLD structure
ErgoGold (formerly Elsburg Gold Mining Joint Venture) At present
56 of production comes from surface retreatment and this is set
to increase
Stock exchange information DRDGOLD has its primary listing on the JSE Limited and its
secondary listing on the Nasdaq Capital Market At year-end the
company had 378 001 303 ordinary shares in issue and a market
capitalisation of R23 billion ($2869 million)
United States 72
South Africa 15
Europe 10
Other countries 3
Geo
grap
hica
l ana
lysi
s of
shar
ehol
ders
ndash 3
0 Ju
ne 2
009
DRDGOLD
KHUMO GOLD DRDSA
Empowerment Trust
DRDGOLD SA
BLYVOOR CROWN
ERGO JV
ERPM
ERGOGOLD
620
100100100
5065 35
74
JSE DRD Nasdaq DROOY
DRD SDR2009_25Nov 112509 259 PM Page 4
DRDGOLD Sustainable Development Report 2009 4
Key aspects of DRDGOLDrsquos business and implications for sustainable development
Exploration DRDGOLDrsquos exploration activities are focused on the extension of existing orebodies and the identification of new orebodies both at existing and undeveloped sites Once an orebody has been discovered exploration is expanded and intensified in order to enable clearer definition of the orebody and the portions with the potential to be mined
Sustainability issues
bull Effect on biodiversity should the exploration occur in restricted areas
bull Consultation and engagement with communities
Surface retreatment DRDGOLDrsquos Crown ERPM and ErgoGold operations retreat tailings (sand and slime) from non-operational sites Retreatment also forms part of Blyvoorrsquos operations
In general surface material has a history of depositions occurring at different stages This means that there are grade variations associated with improvements in plant recovery over the period of time in question
Sand is reclaimed using mechanical front-end loaders and re-pulped with water Slime is reclaimed using high pressure water monitoring guns
Mining DRDGOLDrsquos Blyvoor mine and ERPM (until the halting of underground operations) access the orebody through underground mining The shaft system comprises vertical and sub-incline shafts which are used for the conveyance of personnel pumping and hoisting of mined ore and waste
Sustainability issues
bull Safety and health of employees and contractors
bull Fair employment practices training and development
bull Careful use of resources ndash water energy and other natural resources ndash and commitment to recycling
bull Preventing pollution particularly with respect to water and dust
bull Land disturbance
Transport of material Underground ore is transported to the plant via conveyer belts and trucks
With regard to retreated material the re-pulped sand and slime is pumped to the plant
Production 2009 Surface retreatment 56 Surfaceunderground Underground splitoperations 44
DRD SDR2009_25Nov 112509 259 PM Page 5
DRDGOLD Sustainable Development Report 2009 5
Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage
The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp
With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal
After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars
Sustainability issues
bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment
to recycling bull Managing and handling cyanide bull Lightening carbon footprint
Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price
Sustainability issues
bull Reducing emissions preventing pollution
Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis
Sustainability issues
bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure
DRD SDR2009_25Nov 112509 300 PM Page 6
DRDGOLD Sustainable Development Report 2009 6
Letter from the CEO
Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect
myriad stakeholders employees unions communities investors
government and regulators non-governmental organisations
suppliers contractors and members of the general public We
also acknowledge that as a South African company we need to play
a role in transforming the economy and society to redress the
imbalances of the past This ranges from developing employees
from the ranks of the previously disadvantaged to supporting
community projects that will create sustainable livelihoods
This was a challenging year for the mining industry in South Africa
in general and at DRDGOLD we experienced some serious
operational difficulties Safety and risk considerations meant that
we had no choice but to stop underground mining at ERPM while
the loss of high-grade panels at Blyvoor combined with the
strengthening of the rand and an increase in the cost of electricity
of 33 resulted in our starting the process of right-sizing Blyvoor
shortly after year-end These decisions were not taken either
lightly or easily We know only too acutely that each of our
employees supports a number of dependants and that job losses
have a knock-on effect in the surrounding communities
However had we not acted as we did we would have put lives in
danger and the companyrsquos future in jeopardy with potentially far
greater negative results
Certainly it is at times like these that sustainability assumes even
greater significance It demonstrates the value of people gaining
the skills to ensure lifelong employment and the importance of the
development and diversification of the local economy so that
communities can continue and prosper when mining activities
decrease or stop completely In this respect we are proud of the
Ekurhuleni Business Development Academy (EBDA) which we have
established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report
Safety issues Of all the aspects of sustainability that we cover in this report
safety is the most important It is with deep regret that we must
advise that five people died in work-related incidents at DRDGOLD
operations during the 2009 financial year We extend our
condolences to the families friends and colleagues of those who
lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa
(4 September 2008) and Annanias Timbe (8 October 2008) at
Blyvoor and Pieter Jonker and Fernando Vate both on
19 September 2008 at ERPM
Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455
There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor
DRD SDR2009_25Nov 112509 300 PM Page 7
DRDGOLD Sustainable Development Report 2009 7
followed by the other DRDGOLD operations We trust that this will
lead to further improvements in our safety performance in the
2010 financial year
Progress with transformation We are pleased to have made further progress in terms of
meeting the requirements of the Mining Charter At Blyvoor the
percentage of historically disadvantaged South Africans (HDSAs)
in management rose from 18 to 25 Crown reached 33 in
2009 At 93 Crown is close to meeting the Mining Charterrsquos
target of women making up 10 of the workforce while at
Blyvoor women comprise 75 of the employee complement up
from 65 last year
We are committed to nurturing talent within the company through
learnerships internships and tertiary education programmes
During 2009 we ran a very successful group-wide pilot
Junior Leadership Programme which combined theoretical with
practical study
Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an
environmental threat and it is a challenge that DRDGOLD is facing
together with several other mining companies Cost-effective
sustainable solutions need to be found Together with those
players DRDGOLD participates in two Section 21 companies the
Western Basin Environmental Corporation and the Central Basin
Environmental Corporation We are hopeful that this consultative
approach will find long-term workable solutions These companies
have commissioned Western Utilities Corporation a wholly owned
subsidiary of AIM-listed Watermark Global plc to develop a holistic
integrated plan Progress is being made towards the establishment
of large-scale water treatment plants with the right technology to
treat AMD to produce both drinking and industrial water More
detailed information on this can be found in the Environment
section of this report
Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have
aligned with the requirements of the Global Reporting Initiativersquos
G3 guidelines We have declared a C level of reporting for the
2009 financial year
We acknowledge that we still have a long way to go before
we meet many of the GRI requirementsWhat is important however
is that we have set these goals for ourselves and are moving in
the right direction The boardrsquos establishment of the Transformation
and Sustainable Development Committee towards the end of the
last financial year is further evidence of our commitment With an
independent non-executive chairman at its helm this committee is
charged with ensuring that DRDGOLD conducts its business in a
manner conducive to the attainment of internationally acceptable
sustainability standards and with promoting transformation
There is a feedback form at the back of this report and we would
appreciate hearing from our stakeholders Let us know what you
think about this report and where we can improve
Nieumll Pretorius
Chief Executive Officer
16 September 2009
DRD SDR2009_25Nov 112509 300 PM Page 8
DRDGOLD Sustainable Development Report 2009 8
Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates
A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34
Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting
As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules
Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)
The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008
The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and
conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards
The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009
Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee
Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter
DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment
The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest
The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage
Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings
Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group
An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services
While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group
DRD SDR2009_25Nov 112509 300 PM Page 9
DRDGOLD Sustainable Development Report 2009 9
Directors and employees are expected to treat all information
pertaining to the group which is not in the public domain in the
strictest confidence and may not divulge such information to any
third party without permission even after the termination of their
services with the group
The company has an anonymous whistle-blower hotline to deal
with complaints from within or outside the company and the
Group Risk Manager provides the Audit Committee with a regular
report on the whistle-blowing programme
Risk management Responsibility for risk management at DRDGOLD starts with the
Board of Directors The overall objective of the Risk Committee is to
assist the board in the discharge of its duties relating to risk
management and control responsibilities assurance issues health
safety and environmental compliance and the monitoring and
reporting of all these matters Responsibility for the quality
integrity and reliability of the groups risk management rests with
the Risk Committee which facilitates communication between the
board the Audit Committee internal auditors and other parties
engaged in risk management activities
The Risk Committee meets every quarter and reports back to the
board Additional ad hoc meetings may be arranged as and when
required Certain members of executive management are invited to
attend Risk Committee meetings on a regular basis including the
Group Risk Manager the Group Financial Manager and the Group
Legal Counsel
The Risk Committee ensures that
an effective risk management programme is implemented and
maintained
risk management awareness is promoted among all employees
risk programmes (financinginsurance) adequately protect the
company against catastrophic risks
regular risk assessments are conducted
the total cost of risk in the long term is reduced
the protection of DRDGOLDs assets is promoted throughout
the group
the health safety and well-being of all stakeholders is
improved and
DRDGOLDs activities are carried out in such a way that the
safety and health of employees is ensured
In addition to strategic and corporate risks the committee also
reviews the effectiveness of the operational risk programmes A
heat map which brings together all the risks that the group faces
is tabled at every meeting
It is widely recognised that integrating risk management
philosophy and practice into the culture of the organisation is an
ongoing process In order to be effective it must be a continuous
dynamic and developing process that addresses risk across the
spectrum ndash from strategic to operational risk Thus a variety of
surveys benchmarks reviews and activities are conducted
throughout the year and these are the building blocks of the risk
management programme
This detailed risk management programme has been in place at
DRDGOLD for a number of years and its effectiveness has ensured
that it forms an integral part of the management of the company
The risk register contains all the relevant information from across
the group and this is updated on a quarterly basis
The process of conducting hazard identification and risk assessment
for the operations is based on
baseline assessment ndash covering the whole operation in a
systematic way in respect of all risks
issues-based assessment ndash specific assessments carried out
prior to the start of an activity and
continuous assessment ndash health safety and environmental
assessments form part of daily activities
DRDGOLD staff members involved in operational risk management
use risk management information and detailed analyses to assist
in decision-making DRDGOLD therefore employs the latest
technology and information wherever required
The system to manage risk involves all significant business and
operational risks which could undermine the achievement of
business objectives and the preservation of shareholder value
The significant risks facing DRDGOLD including those at an
operational level have been identified People have been assigned
to each risk and the results of their work to improve controls are
reviewed by senior management through regular risk meetings
In addition to the above initiatives DRDGOLD also employs thirdshy
party consultants to benchmark its operations against other mining
operations throughout South Africa and more than 300 different
mining companies worldwide
Communication with stakeholders DRDGOLD gives substance to its commitment to transparency
through the implementation of an integrated and sustained
programme of communication directed at its various stakeholders
These include employees unions communities government and
regulators non-governmental organisations suppliers contractors
customers and members of the public
Effective two-way communication with the communities within
which it operates is an area of growing importance to the group
While increasingly much of this communication is required by
regulation and statute and takes the form of formal consultation
with interested and affected parties operational management has
come to recognise the value of community understanding of and
support for managementrsquos actions and of the role that effective
communication plays in securing these
Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in
respect of non-compliance with laws or regulations The company
is engaged in some legal actions the details of which appear on
pages 113 to 114 of the 2009 Annual Report
DRD SDR2009_25Nov 112509 300 PM Page 10
Economic performance
As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people
employees and their dependants investors suppliers and members of the communities
surrounding the companyrsquos operations
The companyrsquos strategy in the short and medium term is to enhance shareholder value by
reducing risk
controlling costs
managing margins and
taking a disciplined approach to growth
One of the most significant operational developments for DRDGOLD in 2009 was the progress
made in shifting the balance of its production towards lower-risk and less costly surface
retreatment operations
During the year under review the company rejoined the Chamber of Mines of South Africa as an
advocacy member The chamber is a voluntary membership private sector employer organisation
and is the principal advocate of major policy positions endorsed by the mining employers and
represents these to various organs of South African national and provincial governments and to
other relevant policy-making and opinion-forming entities both within the country and abroad
The chamber also works closely with the various employee organisations in formulating these
positions where appropriate
DRDGOLD Sustainable Development Report 2009 10
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 259 PM Page 2
DRDGOLD Sustainable Development Report 2009 2
Corporate profile
Carletonville
Blyvoor
ErgoGold
Crown ERPM
Klerksdorp
Potchefstroom
Vereeniging
Johannesburg Benoni
Nigel
Brakpan
0 10
kilometres
20
SOUTH AFRICA
Klerksdorp
Carletonville Pretoria
Johannesburg
Durban
Port Elizabeth
East London
Bloemfontein
Cape Town
GautengNorth West
DRDGOLD Limited (DRDGOLD) is a medium-sized unhedged gold producer South Africarsquos fourthshy
largest In 2009 the company produced 247 690 ounces and declared Mineral Resources of
564 million ounces and Ore Reserves of 60 million ounces As at 30 June 2009 DRDGOLD
employed 6 715 people comprising 4 869 employees and 1 846 contractors
DRD SDR2009_25Nov 112509 259 PM Page 3
DRDGOLD Sustainable Development Report 2009 3
The companyrsquos 74-owned operating subsidiary is DRDGOLD
South African Operations (Pty) Limited (DRDGOLD SA) Black
economic empowerment partner Khumo Gold SPV (Pty) Limited
(Khumo Gold) holds 20 of DRDGOLD SA and the DRDSA
Empowerment Trust 6
After disposing of its entire interest in Australian gold miner
Emperor Mines Limited in October 2007 DRDGOLDrsquos new
management has aimed at maintaining a healthy mix of assets To
this end the focus has been on
improving the potential of existing South African underground
and retreatment operations and
expanding surface retreatment activity
Although management continues to be bullish about goldrsquos
prospects in the medium to longer term the team has taken careful
stock of current global economic difficulties and the growing
challenges associated with deep-level gold mining In view of this
DRDGOLD has opted to chart a conservative path forward
The operations which are owned and run through DRDGOLD SA
are Blyvooruitzicht Gold Mining Company Limited (Blyvoor) East
Rand Proprietary Mines Limited (ERPM) Crown Gold Recoveries
(Pty) Limited (Crown) Ergo Mining (Pty) Limited (Ergo) and
DRDGOLD structure
ErgoGold (formerly Elsburg Gold Mining Joint Venture) At present
56 of production comes from surface retreatment and this is set
to increase
Stock exchange information DRDGOLD has its primary listing on the JSE Limited and its
secondary listing on the Nasdaq Capital Market At year-end the
company had 378 001 303 ordinary shares in issue and a market
capitalisation of R23 billion ($2869 million)
United States 72
South Africa 15
Europe 10
Other countries 3
Geo
grap
hica
l ana
lysi
s of
shar
ehol
ders
ndash 3
0 Ju
ne 2
009
DRDGOLD
KHUMO GOLD DRDSA
Empowerment Trust
DRDGOLD SA
BLYVOOR CROWN
ERGO JV
ERPM
ERGOGOLD
620
100100100
5065 35
74
JSE DRD Nasdaq DROOY
DRD SDR2009_25Nov 112509 259 PM Page 4
DRDGOLD Sustainable Development Report 2009 4
Key aspects of DRDGOLDrsquos business and implications for sustainable development
Exploration DRDGOLDrsquos exploration activities are focused on the extension of existing orebodies and the identification of new orebodies both at existing and undeveloped sites Once an orebody has been discovered exploration is expanded and intensified in order to enable clearer definition of the orebody and the portions with the potential to be mined
Sustainability issues
bull Effect on biodiversity should the exploration occur in restricted areas
bull Consultation and engagement with communities
Surface retreatment DRDGOLDrsquos Crown ERPM and ErgoGold operations retreat tailings (sand and slime) from non-operational sites Retreatment also forms part of Blyvoorrsquos operations
In general surface material has a history of depositions occurring at different stages This means that there are grade variations associated with improvements in plant recovery over the period of time in question
Sand is reclaimed using mechanical front-end loaders and re-pulped with water Slime is reclaimed using high pressure water monitoring guns
Mining DRDGOLDrsquos Blyvoor mine and ERPM (until the halting of underground operations) access the orebody through underground mining The shaft system comprises vertical and sub-incline shafts which are used for the conveyance of personnel pumping and hoisting of mined ore and waste
Sustainability issues
bull Safety and health of employees and contractors
bull Fair employment practices training and development
bull Careful use of resources ndash water energy and other natural resources ndash and commitment to recycling
bull Preventing pollution particularly with respect to water and dust
bull Land disturbance
Transport of material Underground ore is transported to the plant via conveyer belts and trucks
With regard to retreated material the re-pulped sand and slime is pumped to the plant
Production 2009 Surface retreatment 56 Surfaceunderground Underground splitoperations 44
DRD SDR2009_25Nov 112509 259 PM Page 5
DRDGOLD Sustainable Development Report 2009 5
Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage
The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp
With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal
After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars
Sustainability issues
bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment
to recycling bull Managing and handling cyanide bull Lightening carbon footprint
Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price
Sustainability issues
bull Reducing emissions preventing pollution
Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis
Sustainability issues
bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure
DRD SDR2009_25Nov 112509 300 PM Page 6
DRDGOLD Sustainable Development Report 2009 6
Letter from the CEO
Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect
myriad stakeholders employees unions communities investors
government and regulators non-governmental organisations
suppliers contractors and members of the general public We
also acknowledge that as a South African company we need to play
a role in transforming the economy and society to redress the
imbalances of the past This ranges from developing employees
from the ranks of the previously disadvantaged to supporting
community projects that will create sustainable livelihoods
This was a challenging year for the mining industry in South Africa
in general and at DRDGOLD we experienced some serious
operational difficulties Safety and risk considerations meant that
we had no choice but to stop underground mining at ERPM while
the loss of high-grade panels at Blyvoor combined with the
strengthening of the rand and an increase in the cost of electricity
of 33 resulted in our starting the process of right-sizing Blyvoor
shortly after year-end These decisions were not taken either
lightly or easily We know only too acutely that each of our
employees supports a number of dependants and that job losses
have a knock-on effect in the surrounding communities
However had we not acted as we did we would have put lives in
danger and the companyrsquos future in jeopardy with potentially far
greater negative results
Certainly it is at times like these that sustainability assumes even
greater significance It demonstrates the value of people gaining
the skills to ensure lifelong employment and the importance of the
development and diversification of the local economy so that
communities can continue and prosper when mining activities
decrease or stop completely In this respect we are proud of the
Ekurhuleni Business Development Academy (EBDA) which we have
established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report
Safety issues Of all the aspects of sustainability that we cover in this report
safety is the most important It is with deep regret that we must
advise that five people died in work-related incidents at DRDGOLD
operations during the 2009 financial year We extend our
condolences to the families friends and colleagues of those who
lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa
(4 September 2008) and Annanias Timbe (8 October 2008) at
Blyvoor and Pieter Jonker and Fernando Vate both on
19 September 2008 at ERPM
Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455
There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor
DRD SDR2009_25Nov 112509 300 PM Page 7
DRDGOLD Sustainable Development Report 2009 7
followed by the other DRDGOLD operations We trust that this will
lead to further improvements in our safety performance in the
2010 financial year
Progress with transformation We are pleased to have made further progress in terms of
meeting the requirements of the Mining Charter At Blyvoor the
percentage of historically disadvantaged South Africans (HDSAs)
in management rose from 18 to 25 Crown reached 33 in
2009 At 93 Crown is close to meeting the Mining Charterrsquos
target of women making up 10 of the workforce while at
Blyvoor women comprise 75 of the employee complement up
from 65 last year
We are committed to nurturing talent within the company through
learnerships internships and tertiary education programmes
During 2009 we ran a very successful group-wide pilot
Junior Leadership Programme which combined theoretical with
practical study
Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an
environmental threat and it is a challenge that DRDGOLD is facing
together with several other mining companies Cost-effective
sustainable solutions need to be found Together with those
players DRDGOLD participates in two Section 21 companies the
Western Basin Environmental Corporation and the Central Basin
Environmental Corporation We are hopeful that this consultative
approach will find long-term workable solutions These companies
have commissioned Western Utilities Corporation a wholly owned
subsidiary of AIM-listed Watermark Global plc to develop a holistic
integrated plan Progress is being made towards the establishment
of large-scale water treatment plants with the right technology to
treat AMD to produce both drinking and industrial water More
detailed information on this can be found in the Environment
section of this report
Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have
aligned with the requirements of the Global Reporting Initiativersquos
G3 guidelines We have declared a C level of reporting for the
2009 financial year
We acknowledge that we still have a long way to go before
we meet many of the GRI requirementsWhat is important however
is that we have set these goals for ourselves and are moving in
the right direction The boardrsquos establishment of the Transformation
and Sustainable Development Committee towards the end of the
last financial year is further evidence of our commitment With an
independent non-executive chairman at its helm this committee is
charged with ensuring that DRDGOLD conducts its business in a
manner conducive to the attainment of internationally acceptable
sustainability standards and with promoting transformation
There is a feedback form at the back of this report and we would
appreciate hearing from our stakeholders Let us know what you
think about this report and where we can improve
Nieumll Pretorius
Chief Executive Officer
16 September 2009
DRD SDR2009_25Nov 112509 300 PM Page 8
DRDGOLD Sustainable Development Report 2009 8
Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates
A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34
Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting
As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules
Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)
The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008
The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and
conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards
The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009
Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee
Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter
DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment
The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest
The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage
Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings
Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group
An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services
While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group
DRD SDR2009_25Nov 112509 300 PM Page 9
DRDGOLD Sustainable Development Report 2009 9
Directors and employees are expected to treat all information
pertaining to the group which is not in the public domain in the
strictest confidence and may not divulge such information to any
third party without permission even after the termination of their
services with the group
The company has an anonymous whistle-blower hotline to deal
with complaints from within or outside the company and the
Group Risk Manager provides the Audit Committee with a regular
report on the whistle-blowing programme
Risk management Responsibility for risk management at DRDGOLD starts with the
Board of Directors The overall objective of the Risk Committee is to
assist the board in the discharge of its duties relating to risk
management and control responsibilities assurance issues health
safety and environmental compliance and the monitoring and
reporting of all these matters Responsibility for the quality
integrity and reliability of the groups risk management rests with
the Risk Committee which facilitates communication between the
board the Audit Committee internal auditors and other parties
engaged in risk management activities
The Risk Committee meets every quarter and reports back to the
board Additional ad hoc meetings may be arranged as and when
required Certain members of executive management are invited to
attend Risk Committee meetings on a regular basis including the
Group Risk Manager the Group Financial Manager and the Group
Legal Counsel
The Risk Committee ensures that
an effective risk management programme is implemented and
maintained
risk management awareness is promoted among all employees
risk programmes (financinginsurance) adequately protect the
company against catastrophic risks
regular risk assessments are conducted
the total cost of risk in the long term is reduced
the protection of DRDGOLDs assets is promoted throughout
the group
the health safety and well-being of all stakeholders is
improved and
DRDGOLDs activities are carried out in such a way that the
safety and health of employees is ensured
In addition to strategic and corporate risks the committee also
reviews the effectiveness of the operational risk programmes A
heat map which brings together all the risks that the group faces
is tabled at every meeting
It is widely recognised that integrating risk management
philosophy and practice into the culture of the organisation is an
ongoing process In order to be effective it must be a continuous
dynamic and developing process that addresses risk across the
spectrum ndash from strategic to operational risk Thus a variety of
surveys benchmarks reviews and activities are conducted
throughout the year and these are the building blocks of the risk
management programme
This detailed risk management programme has been in place at
DRDGOLD for a number of years and its effectiveness has ensured
that it forms an integral part of the management of the company
The risk register contains all the relevant information from across
the group and this is updated on a quarterly basis
The process of conducting hazard identification and risk assessment
for the operations is based on
baseline assessment ndash covering the whole operation in a
systematic way in respect of all risks
issues-based assessment ndash specific assessments carried out
prior to the start of an activity and
continuous assessment ndash health safety and environmental
assessments form part of daily activities
DRDGOLD staff members involved in operational risk management
use risk management information and detailed analyses to assist
in decision-making DRDGOLD therefore employs the latest
technology and information wherever required
The system to manage risk involves all significant business and
operational risks which could undermine the achievement of
business objectives and the preservation of shareholder value
The significant risks facing DRDGOLD including those at an
operational level have been identified People have been assigned
to each risk and the results of their work to improve controls are
reviewed by senior management through regular risk meetings
In addition to the above initiatives DRDGOLD also employs thirdshy
party consultants to benchmark its operations against other mining
operations throughout South Africa and more than 300 different
mining companies worldwide
Communication with stakeholders DRDGOLD gives substance to its commitment to transparency
through the implementation of an integrated and sustained
programme of communication directed at its various stakeholders
These include employees unions communities government and
regulators non-governmental organisations suppliers contractors
customers and members of the public
Effective two-way communication with the communities within
which it operates is an area of growing importance to the group
While increasingly much of this communication is required by
regulation and statute and takes the form of formal consultation
with interested and affected parties operational management has
come to recognise the value of community understanding of and
support for managementrsquos actions and of the role that effective
communication plays in securing these
Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in
respect of non-compliance with laws or regulations The company
is engaged in some legal actions the details of which appear on
pages 113 to 114 of the 2009 Annual Report
DRD SDR2009_25Nov 112509 300 PM Page 10
Economic performance
As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people
employees and their dependants investors suppliers and members of the communities
surrounding the companyrsquos operations
The companyrsquos strategy in the short and medium term is to enhance shareholder value by
reducing risk
controlling costs
managing margins and
taking a disciplined approach to growth
One of the most significant operational developments for DRDGOLD in 2009 was the progress
made in shifting the balance of its production towards lower-risk and less costly surface
retreatment operations
During the year under review the company rejoined the Chamber of Mines of South Africa as an
advocacy member The chamber is a voluntary membership private sector employer organisation
and is the principal advocate of major policy positions endorsed by the mining employers and
represents these to various organs of South African national and provincial governments and to
other relevant policy-making and opinion-forming entities both within the country and abroad
The chamber also works closely with the various employee organisations in formulating these
positions where appropriate
DRDGOLD Sustainable Development Report 2009 10
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 259 PM Page 3
DRDGOLD Sustainable Development Report 2009 3
The companyrsquos 74-owned operating subsidiary is DRDGOLD
South African Operations (Pty) Limited (DRDGOLD SA) Black
economic empowerment partner Khumo Gold SPV (Pty) Limited
(Khumo Gold) holds 20 of DRDGOLD SA and the DRDSA
Empowerment Trust 6
After disposing of its entire interest in Australian gold miner
Emperor Mines Limited in October 2007 DRDGOLDrsquos new
management has aimed at maintaining a healthy mix of assets To
this end the focus has been on
improving the potential of existing South African underground
and retreatment operations and
expanding surface retreatment activity
Although management continues to be bullish about goldrsquos
prospects in the medium to longer term the team has taken careful
stock of current global economic difficulties and the growing
challenges associated with deep-level gold mining In view of this
DRDGOLD has opted to chart a conservative path forward
The operations which are owned and run through DRDGOLD SA
are Blyvooruitzicht Gold Mining Company Limited (Blyvoor) East
Rand Proprietary Mines Limited (ERPM) Crown Gold Recoveries
(Pty) Limited (Crown) Ergo Mining (Pty) Limited (Ergo) and
DRDGOLD structure
ErgoGold (formerly Elsburg Gold Mining Joint Venture) At present
56 of production comes from surface retreatment and this is set
to increase
Stock exchange information DRDGOLD has its primary listing on the JSE Limited and its
secondary listing on the Nasdaq Capital Market At year-end the
company had 378 001 303 ordinary shares in issue and a market
capitalisation of R23 billion ($2869 million)
United States 72
South Africa 15
Europe 10
Other countries 3
Geo
grap
hica
l ana
lysi
s of
shar
ehol
ders
ndash 3
0 Ju
ne 2
009
DRDGOLD
KHUMO GOLD DRDSA
Empowerment Trust
DRDGOLD SA
BLYVOOR CROWN
ERGO JV
ERPM
ERGOGOLD
620
100100100
5065 35
74
JSE DRD Nasdaq DROOY
DRD SDR2009_25Nov 112509 259 PM Page 4
DRDGOLD Sustainable Development Report 2009 4
Key aspects of DRDGOLDrsquos business and implications for sustainable development
Exploration DRDGOLDrsquos exploration activities are focused on the extension of existing orebodies and the identification of new orebodies both at existing and undeveloped sites Once an orebody has been discovered exploration is expanded and intensified in order to enable clearer definition of the orebody and the portions with the potential to be mined
Sustainability issues
bull Effect on biodiversity should the exploration occur in restricted areas
bull Consultation and engagement with communities
Surface retreatment DRDGOLDrsquos Crown ERPM and ErgoGold operations retreat tailings (sand and slime) from non-operational sites Retreatment also forms part of Blyvoorrsquos operations
In general surface material has a history of depositions occurring at different stages This means that there are grade variations associated with improvements in plant recovery over the period of time in question
Sand is reclaimed using mechanical front-end loaders and re-pulped with water Slime is reclaimed using high pressure water monitoring guns
Mining DRDGOLDrsquos Blyvoor mine and ERPM (until the halting of underground operations) access the orebody through underground mining The shaft system comprises vertical and sub-incline shafts which are used for the conveyance of personnel pumping and hoisting of mined ore and waste
Sustainability issues
bull Safety and health of employees and contractors
bull Fair employment practices training and development
bull Careful use of resources ndash water energy and other natural resources ndash and commitment to recycling
bull Preventing pollution particularly with respect to water and dust
bull Land disturbance
Transport of material Underground ore is transported to the plant via conveyer belts and trucks
With regard to retreated material the re-pulped sand and slime is pumped to the plant
Production 2009 Surface retreatment 56 Surfaceunderground Underground splitoperations 44
DRD SDR2009_25Nov 112509 259 PM Page 5
DRDGOLD Sustainable Development Report 2009 5
Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage
The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp
With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal
After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars
Sustainability issues
bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment
to recycling bull Managing and handling cyanide bull Lightening carbon footprint
Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price
Sustainability issues
bull Reducing emissions preventing pollution
Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis
Sustainability issues
bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure
DRD SDR2009_25Nov 112509 300 PM Page 6
DRDGOLD Sustainable Development Report 2009 6
Letter from the CEO
Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect
myriad stakeholders employees unions communities investors
government and regulators non-governmental organisations
suppliers contractors and members of the general public We
also acknowledge that as a South African company we need to play
a role in transforming the economy and society to redress the
imbalances of the past This ranges from developing employees
from the ranks of the previously disadvantaged to supporting
community projects that will create sustainable livelihoods
This was a challenging year for the mining industry in South Africa
in general and at DRDGOLD we experienced some serious
operational difficulties Safety and risk considerations meant that
we had no choice but to stop underground mining at ERPM while
the loss of high-grade panels at Blyvoor combined with the
strengthening of the rand and an increase in the cost of electricity
of 33 resulted in our starting the process of right-sizing Blyvoor
shortly after year-end These decisions were not taken either
lightly or easily We know only too acutely that each of our
employees supports a number of dependants and that job losses
have a knock-on effect in the surrounding communities
However had we not acted as we did we would have put lives in
danger and the companyrsquos future in jeopardy with potentially far
greater negative results
Certainly it is at times like these that sustainability assumes even
greater significance It demonstrates the value of people gaining
the skills to ensure lifelong employment and the importance of the
development and diversification of the local economy so that
communities can continue and prosper when mining activities
decrease or stop completely In this respect we are proud of the
Ekurhuleni Business Development Academy (EBDA) which we have
established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report
Safety issues Of all the aspects of sustainability that we cover in this report
safety is the most important It is with deep regret that we must
advise that five people died in work-related incidents at DRDGOLD
operations during the 2009 financial year We extend our
condolences to the families friends and colleagues of those who
lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa
(4 September 2008) and Annanias Timbe (8 October 2008) at
Blyvoor and Pieter Jonker and Fernando Vate both on
19 September 2008 at ERPM
Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455
There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor
DRD SDR2009_25Nov 112509 300 PM Page 7
DRDGOLD Sustainable Development Report 2009 7
followed by the other DRDGOLD operations We trust that this will
lead to further improvements in our safety performance in the
2010 financial year
Progress with transformation We are pleased to have made further progress in terms of
meeting the requirements of the Mining Charter At Blyvoor the
percentage of historically disadvantaged South Africans (HDSAs)
in management rose from 18 to 25 Crown reached 33 in
2009 At 93 Crown is close to meeting the Mining Charterrsquos
target of women making up 10 of the workforce while at
Blyvoor women comprise 75 of the employee complement up
from 65 last year
We are committed to nurturing talent within the company through
learnerships internships and tertiary education programmes
During 2009 we ran a very successful group-wide pilot
Junior Leadership Programme which combined theoretical with
practical study
Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an
environmental threat and it is a challenge that DRDGOLD is facing
together with several other mining companies Cost-effective
sustainable solutions need to be found Together with those
players DRDGOLD participates in two Section 21 companies the
Western Basin Environmental Corporation and the Central Basin
Environmental Corporation We are hopeful that this consultative
approach will find long-term workable solutions These companies
have commissioned Western Utilities Corporation a wholly owned
subsidiary of AIM-listed Watermark Global plc to develop a holistic
integrated plan Progress is being made towards the establishment
of large-scale water treatment plants with the right technology to
treat AMD to produce both drinking and industrial water More
detailed information on this can be found in the Environment
section of this report
Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have
aligned with the requirements of the Global Reporting Initiativersquos
G3 guidelines We have declared a C level of reporting for the
2009 financial year
We acknowledge that we still have a long way to go before
we meet many of the GRI requirementsWhat is important however
is that we have set these goals for ourselves and are moving in
the right direction The boardrsquos establishment of the Transformation
and Sustainable Development Committee towards the end of the
last financial year is further evidence of our commitment With an
independent non-executive chairman at its helm this committee is
charged with ensuring that DRDGOLD conducts its business in a
manner conducive to the attainment of internationally acceptable
sustainability standards and with promoting transformation
There is a feedback form at the back of this report and we would
appreciate hearing from our stakeholders Let us know what you
think about this report and where we can improve
Nieumll Pretorius
Chief Executive Officer
16 September 2009
DRD SDR2009_25Nov 112509 300 PM Page 8
DRDGOLD Sustainable Development Report 2009 8
Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates
A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34
Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting
As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules
Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)
The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008
The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and
conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards
The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009
Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee
Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter
DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment
The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest
The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage
Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings
Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group
An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services
While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group
DRD SDR2009_25Nov 112509 300 PM Page 9
DRDGOLD Sustainable Development Report 2009 9
Directors and employees are expected to treat all information
pertaining to the group which is not in the public domain in the
strictest confidence and may not divulge such information to any
third party without permission even after the termination of their
services with the group
The company has an anonymous whistle-blower hotline to deal
with complaints from within or outside the company and the
Group Risk Manager provides the Audit Committee with a regular
report on the whistle-blowing programme
Risk management Responsibility for risk management at DRDGOLD starts with the
Board of Directors The overall objective of the Risk Committee is to
assist the board in the discharge of its duties relating to risk
management and control responsibilities assurance issues health
safety and environmental compliance and the monitoring and
reporting of all these matters Responsibility for the quality
integrity and reliability of the groups risk management rests with
the Risk Committee which facilitates communication between the
board the Audit Committee internal auditors and other parties
engaged in risk management activities
The Risk Committee meets every quarter and reports back to the
board Additional ad hoc meetings may be arranged as and when
required Certain members of executive management are invited to
attend Risk Committee meetings on a regular basis including the
Group Risk Manager the Group Financial Manager and the Group
Legal Counsel
The Risk Committee ensures that
an effective risk management programme is implemented and
maintained
risk management awareness is promoted among all employees
risk programmes (financinginsurance) adequately protect the
company against catastrophic risks
regular risk assessments are conducted
the total cost of risk in the long term is reduced
the protection of DRDGOLDs assets is promoted throughout
the group
the health safety and well-being of all stakeholders is
improved and
DRDGOLDs activities are carried out in such a way that the
safety and health of employees is ensured
In addition to strategic and corporate risks the committee also
reviews the effectiveness of the operational risk programmes A
heat map which brings together all the risks that the group faces
is tabled at every meeting
It is widely recognised that integrating risk management
philosophy and practice into the culture of the organisation is an
ongoing process In order to be effective it must be a continuous
dynamic and developing process that addresses risk across the
spectrum ndash from strategic to operational risk Thus a variety of
surveys benchmarks reviews and activities are conducted
throughout the year and these are the building blocks of the risk
management programme
This detailed risk management programme has been in place at
DRDGOLD for a number of years and its effectiveness has ensured
that it forms an integral part of the management of the company
The risk register contains all the relevant information from across
the group and this is updated on a quarterly basis
The process of conducting hazard identification and risk assessment
for the operations is based on
baseline assessment ndash covering the whole operation in a
systematic way in respect of all risks
issues-based assessment ndash specific assessments carried out
prior to the start of an activity and
continuous assessment ndash health safety and environmental
assessments form part of daily activities
DRDGOLD staff members involved in operational risk management
use risk management information and detailed analyses to assist
in decision-making DRDGOLD therefore employs the latest
technology and information wherever required
The system to manage risk involves all significant business and
operational risks which could undermine the achievement of
business objectives and the preservation of shareholder value
The significant risks facing DRDGOLD including those at an
operational level have been identified People have been assigned
to each risk and the results of their work to improve controls are
reviewed by senior management through regular risk meetings
In addition to the above initiatives DRDGOLD also employs thirdshy
party consultants to benchmark its operations against other mining
operations throughout South Africa and more than 300 different
mining companies worldwide
Communication with stakeholders DRDGOLD gives substance to its commitment to transparency
through the implementation of an integrated and sustained
programme of communication directed at its various stakeholders
These include employees unions communities government and
regulators non-governmental organisations suppliers contractors
customers and members of the public
Effective two-way communication with the communities within
which it operates is an area of growing importance to the group
While increasingly much of this communication is required by
regulation and statute and takes the form of formal consultation
with interested and affected parties operational management has
come to recognise the value of community understanding of and
support for managementrsquos actions and of the role that effective
communication plays in securing these
Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in
respect of non-compliance with laws or regulations The company
is engaged in some legal actions the details of which appear on
pages 113 to 114 of the 2009 Annual Report
DRD SDR2009_25Nov 112509 300 PM Page 10
Economic performance
As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people
employees and their dependants investors suppliers and members of the communities
surrounding the companyrsquos operations
The companyrsquos strategy in the short and medium term is to enhance shareholder value by
reducing risk
controlling costs
managing margins and
taking a disciplined approach to growth
One of the most significant operational developments for DRDGOLD in 2009 was the progress
made in shifting the balance of its production towards lower-risk and less costly surface
retreatment operations
During the year under review the company rejoined the Chamber of Mines of South Africa as an
advocacy member The chamber is a voluntary membership private sector employer organisation
and is the principal advocate of major policy positions endorsed by the mining employers and
represents these to various organs of South African national and provincial governments and to
other relevant policy-making and opinion-forming entities both within the country and abroad
The chamber also works closely with the various employee organisations in formulating these
positions where appropriate
DRDGOLD Sustainable Development Report 2009 10
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 259 PM Page 4
DRDGOLD Sustainable Development Report 2009 4
Key aspects of DRDGOLDrsquos business and implications for sustainable development
Exploration DRDGOLDrsquos exploration activities are focused on the extension of existing orebodies and the identification of new orebodies both at existing and undeveloped sites Once an orebody has been discovered exploration is expanded and intensified in order to enable clearer definition of the orebody and the portions with the potential to be mined
Sustainability issues
bull Effect on biodiversity should the exploration occur in restricted areas
bull Consultation and engagement with communities
Surface retreatment DRDGOLDrsquos Crown ERPM and ErgoGold operations retreat tailings (sand and slime) from non-operational sites Retreatment also forms part of Blyvoorrsquos operations
In general surface material has a history of depositions occurring at different stages This means that there are grade variations associated with improvements in plant recovery over the period of time in question
Sand is reclaimed using mechanical front-end loaders and re-pulped with water Slime is reclaimed using high pressure water monitoring guns
Mining DRDGOLDrsquos Blyvoor mine and ERPM (until the halting of underground operations) access the orebody through underground mining The shaft system comprises vertical and sub-incline shafts which are used for the conveyance of personnel pumping and hoisting of mined ore and waste
Sustainability issues
bull Safety and health of employees and contractors
bull Fair employment practices training and development
bull Careful use of resources ndash water energy and other natural resources ndash and commitment to recycling
bull Preventing pollution particularly with respect to water and dust
bull Land disturbance
Transport of material Underground ore is transported to the plant via conveyer belts and trucks
With regard to retreated material the re-pulped sand and slime is pumped to the plant
Production 2009 Surface retreatment 56 Surfaceunderground Underground splitoperations 44
DRD SDR2009_25Nov 112509 259 PM Page 5
DRDGOLD Sustainable Development Report 2009 5
Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage
The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp
With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal
After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars
Sustainability issues
bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment
to recycling bull Managing and handling cyanide bull Lightening carbon footprint
Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price
Sustainability issues
bull Reducing emissions preventing pollution
Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis
Sustainability issues
bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure
DRD SDR2009_25Nov 112509 300 PM Page 6
DRDGOLD Sustainable Development Report 2009 6
Letter from the CEO
Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect
myriad stakeholders employees unions communities investors
government and regulators non-governmental organisations
suppliers contractors and members of the general public We
also acknowledge that as a South African company we need to play
a role in transforming the economy and society to redress the
imbalances of the past This ranges from developing employees
from the ranks of the previously disadvantaged to supporting
community projects that will create sustainable livelihoods
This was a challenging year for the mining industry in South Africa
in general and at DRDGOLD we experienced some serious
operational difficulties Safety and risk considerations meant that
we had no choice but to stop underground mining at ERPM while
the loss of high-grade panels at Blyvoor combined with the
strengthening of the rand and an increase in the cost of electricity
of 33 resulted in our starting the process of right-sizing Blyvoor
shortly after year-end These decisions were not taken either
lightly or easily We know only too acutely that each of our
employees supports a number of dependants and that job losses
have a knock-on effect in the surrounding communities
However had we not acted as we did we would have put lives in
danger and the companyrsquos future in jeopardy with potentially far
greater negative results
Certainly it is at times like these that sustainability assumes even
greater significance It demonstrates the value of people gaining
the skills to ensure lifelong employment and the importance of the
development and diversification of the local economy so that
communities can continue and prosper when mining activities
decrease or stop completely In this respect we are proud of the
Ekurhuleni Business Development Academy (EBDA) which we have
established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report
Safety issues Of all the aspects of sustainability that we cover in this report
safety is the most important It is with deep regret that we must
advise that five people died in work-related incidents at DRDGOLD
operations during the 2009 financial year We extend our
condolences to the families friends and colleagues of those who
lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa
(4 September 2008) and Annanias Timbe (8 October 2008) at
Blyvoor and Pieter Jonker and Fernando Vate both on
19 September 2008 at ERPM
Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455
There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor
DRD SDR2009_25Nov 112509 300 PM Page 7
DRDGOLD Sustainable Development Report 2009 7
followed by the other DRDGOLD operations We trust that this will
lead to further improvements in our safety performance in the
2010 financial year
Progress with transformation We are pleased to have made further progress in terms of
meeting the requirements of the Mining Charter At Blyvoor the
percentage of historically disadvantaged South Africans (HDSAs)
in management rose from 18 to 25 Crown reached 33 in
2009 At 93 Crown is close to meeting the Mining Charterrsquos
target of women making up 10 of the workforce while at
Blyvoor women comprise 75 of the employee complement up
from 65 last year
We are committed to nurturing talent within the company through
learnerships internships and tertiary education programmes
During 2009 we ran a very successful group-wide pilot
Junior Leadership Programme which combined theoretical with
practical study
Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an
environmental threat and it is a challenge that DRDGOLD is facing
together with several other mining companies Cost-effective
sustainable solutions need to be found Together with those
players DRDGOLD participates in two Section 21 companies the
Western Basin Environmental Corporation and the Central Basin
Environmental Corporation We are hopeful that this consultative
approach will find long-term workable solutions These companies
have commissioned Western Utilities Corporation a wholly owned
subsidiary of AIM-listed Watermark Global plc to develop a holistic
integrated plan Progress is being made towards the establishment
of large-scale water treatment plants with the right technology to
treat AMD to produce both drinking and industrial water More
detailed information on this can be found in the Environment
section of this report
Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have
aligned with the requirements of the Global Reporting Initiativersquos
G3 guidelines We have declared a C level of reporting for the
2009 financial year
We acknowledge that we still have a long way to go before
we meet many of the GRI requirementsWhat is important however
is that we have set these goals for ourselves and are moving in
the right direction The boardrsquos establishment of the Transformation
and Sustainable Development Committee towards the end of the
last financial year is further evidence of our commitment With an
independent non-executive chairman at its helm this committee is
charged with ensuring that DRDGOLD conducts its business in a
manner conducive to the attainment of internationally acceptable
sustainability standards and with promoting transformation
There is a feedback form at the back of this report and we would
appreciate hearing from our stakeholders Let us know what you
think about this report and where we can improve
Nieumll Pretorius
Chief Executive Officer
16 September 2009
DRD SDR2009_25Nov 112509 300 PM Page 8
DRDGOLD Sustainable Development Report 2009 8
Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates
A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34
Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting
As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules
Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)
The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008
The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and
conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards
The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009
Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee
Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter
DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment
The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest
The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage
Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings
Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group
An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services
While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group
DRD SDR2009_25Nov 112509 300 PM Page 9
DRDGOLD Sustainable Development Report 2009 9
Directors and employees are expected to treat all information
pertaining to the group which is not in the public domain in the
strictest confidence and may not divulge such information to any
third party without permission even after the termination of their
services with the group
The company has an anonymous whistle-blower hotline to deal
with complaints from within or outside the company and the
Group Risk Manager provides the Audit Committee with a regular
report on the whistle-blowing programme
Risk management Responsibility for risk management at DRDGOLD starts with the
Board of Directors The overall objective of the Risk Committee is to
assist the board in the discharge of its duties relating to risk
management and control responsibilities assurance issues health
safety and environmental compliance and the monitoring and
reporting of all these matters Responsibility for the quality
integrity and reliability of the groups risk management rests with
the Risk Committee which facilitates communication between the
board the Audit Committee internal auditors and other parties
engaged in risk management activities
The Risk Committee meets every quarter and reports back to the
board Additional ad hoc meetings may be arranged as and when
required Certain members of executive management are invited to
attend Risk Committee meetings on a regular basis including the
Group Risk Manager the Group Financial Manager and the Group
Legal Counsel
The Risk Committee ensures that
an effective risk management programme is implemented and
maintained
risk management awareness is promoted among all employees
risk programmes (financinginsurance) adequately protect the
company against catastrophic risks
regular risk assessments are conducted
the total cost of risk in the long term is reduced
the protection of DRDGOLDs assets is promoted throughout
the group
the health safety and well-being of all stakeholders is
improved and
DRDGOLDs activities are carried out in such a way that the
safety and health of employees is ensured
In addition to strategic and corporate risks the committee also
reviews the effectiveness of the operational risk programmes A
heat map which brings together all the risks that the group faces
is tabled at every meeting
It is widely recognised that integrating risk management
philosophy and practice into the culture of the organisation is an
ongoing process In order to be effective it must be a continuous
dynamic and developing process that addresses risk across the
spectrum ndash from strategic to operational risk Thus a variety of
surveys benchmarks reviews and activities are conducted
throughout the year and these are the building blocks of the risk
management programme
This detailed risk management programme has been in place at
DRDGOLD for a number of years and its effectiveness has ensured
that it forms an integral part of the management of the company
The risk register contains all the relevant information from across
the group and this is updated on a quarterly basis
The process of conducting hazard identification and risk assessment
for the operations is based on
baseline assessment ndash covering the whole operation in a
systematic way in respect of all risks
issues-based assessment ndash specific assessments carried out
prior to the start of an activity and
continuous assessment ndash health safety and environmental
assessments form part of daily activities
DRDGOLD staff members involved in operational risk management
use risk management information and detailed analyses to assist
in decision-making DRDGOLD therefore employs the latest
technology and information wherever required
The system to manage risk involves all significant business and
operational risks which could undermine the achievement of
business objectives and the preservation of shareholder value
The significant risks facing DRDGOLD including those at an
operational level have been identified People have been assigned
to each risk and the results of their work to improve controls are
reviewed by senior management through regular risk meetings
In addition to the above initiatives DRDGOLD also employs thirdshy
party consultants to benchmark its operations against other mining
operations throughout South Africa and more than 300 different
mining companies worldwide
Communication with stakeholders DRDGOLD gives substance to its commitment to transparency
through the implementation of an integrated and sustained
programme of communication directed at its various stakeholders
These include employees unions communities government and
regulators non-governmental organisations suppliers contractors
customers and members of the public
Effective two-way communication with the communities within
which it operates is an area of growing importance to the group
While increasingly much of this communication is required by
regulation and statute and takes the form of formal consultation
with interested and affected parties operational management has
come to recognise the value of community understanding of and
support for managementrsquos actions and of the role that effective
communication plays in securing these
Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in
respect of non-compliance with laws or regulations The company
is engaged in some legal actions the details of which appear on
pages 113 to 114 of the 2009 Annual Report
DRD SDR2009_25Nov 112509 300 PM Page 10
Economic performance
As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people
employees and their dependants investors suppliers and members of the communities
surrounding the companyrsquos operations
The companyrsquos strategy in the short and medium term is to enhance shareholder value by
reducing risk
controlling costs
managing margins and
taking a disciplined approach to growth
One of the most significant operational developments for DRDGOLD in 2009 was the progress
made in shifting the balance of its production towards lower-risk and less costly surface
retreatment operations
During the year under review the company rejoined the Chamber of Mines of South Africa as an
advocacy member The chamber is a voluntary membership private sector employer organisation
and is the principal advocate of major policy positions endorsed by the mining employers and
represents these to various organs of South African national and provincial governments and to
other relevant policy-making and opinion-forming entities both within the country and abroad
The chamber also works closely with the various employee organisations in formulating these
positions where appropriate
DRDGOLD Sustainable Development Report 2009 10
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 259 PM Page 5
DRDGOLD Sustainable Development Report 2009 5
Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage
The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp
With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal
After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars
Sustainability issues
bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment
to recycling bull Managing and handling cyanide bull Lightening carbon footprint
Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price
Sustainability issues
bull Reducing emissions preventing pollution
Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis
Sustainability issues
bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure
DRD SDR2009_25Nov 112509 300 PM Page 6
DRDGOLD Sustainable Development Report 2009 6
Letter from the CEO
Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect
myriad stakeholders employees unions communities investors
government and regulators non-governmental organisations
suppliers contractors and members of the general public We
also acknowledge that as a South African company we need to play
a role in transforming the economy and society to redress the
imbalances of the past This ranges from developing employees
from the ranks of the previously disadvantaged to supporting
community projects that will create sustainable livelihoods
This was a challenging year for the mining industry in South Africa
in general and at DRDGOLD we experienced some serious
operational difficulties Safety and risk considerations meant that
we had no choice but to stop underground mining at ERPM while
the loss of high-grade panels at Blyvoor combined with the
strengthening of the rand and an increase in the cost of electricity
of 33 resulted in our starting the process of right-sizing Blyvoor
shortly after year-end These decisions were not taken either
lightly or easily We know only too acutely that each of our
employees supports a number of dependants and that job losses
have a knock-on effect in the surrounding communities
However had we not acted as we did we would have put lives in
danger and the companyrsquos future in jeopardy with potentially far
greater negative results
Certainly it is at times like these that sustainability assumes even
greater significance It demonstrates the value of people gaining
the skills to ensure lifelong employment and the importance of the
development and diversification of the local economy so that
communities can continue and prosper when mining activities
decrease or stop completely In this respect we are proud of the
Ekurhuleni Business Development Academy (EBDA) which we have
established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report
Safety issues Of all the aspects of sustainability that we cover in this report
safety is the most important It is with deep regret that we must
advise that five people died in work-related incidents at DRDGOLD
operations during the 2009 financial year We extend our
condolences to the families friends and colleagues of those who
lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa
(4 September 2008) and Annanias Timbe (8 October 2008) at
Blyvoor and Pieter Jonker and Fernando Vate both on
19 September 2008 at ERPM
Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455
There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor
DRD SDR2009_25Nov 112509 300 PM Page 7
DRDGOLD Sustainable Development Report 2009 7
followed by the other DRDGOLD operations We trust that this will
lead to further improvements in our safety performance in the
2010 financial year
Progress with transformation We are pleased to have made further progress in terms of
meeting the requirements of the Mining Charter At Blyvoor the
percentage of historically disadvantaged South Africans (HDSAs)
in management rose from 18 to 25 Crown reached 33 in
2009 At 93 Crown is close to meeting the Mining Charterrsquos
target of women making up 10 of the workforce while at
Blyvoor women comprise 75 of the employee complement up
from 65 last year
We are committed to nurturing talent within the company through
learnerships internships and tertiary education programmes
During 2009 we ran a very successful group-wide pilot
Junior Leadership Programme which combined theoretical with
practical study
Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an
environmental threat and it is a challenge that DRDGOLD is facing
together with several other mining companies Cost-effective
sustainable solutions need to be found Together with those
players DRDGOLD participates in two Section 21 companies the
Western Basin Environmental Corporation and the Central Basin
Environmental Corporation We are hopeful that this consultative
approach will find long-term workable solutions These companies
have commissioned Western Utilities Corporation a wholly owned
subsidiary of AIM-listed Watermark Global plc to develop a holistic
integrated plan Progress is being made towards the establishment
of large-scale water treatment plants with the right technology to
treat AMD to produce both drinking and industrial water More
detailed information on this can be found in the Environment
section of this report
Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have
aligned with the requirements of the Global Reporting Initiativersquos
G3 guidelines We have declared a C level of reporting for the
2009 financial year
We acknowledge that we still have a long way to go before
we meet many of the GRI requirementsWhat is important however
is that we have set these goals for ourselves and are moving in
the right direction The boardrsquos establishment of the Transformation
and Sustainable Development Committee towards the end of the
last financial year is further evidence of our commitment With an
independent non-executive chairman at its helm this committee is
charged with ensuring that DRDGOLD conducts its business in a
manner conducive to the attainment of internationally acceptable
sustainability standards and with promoting transformation
There is a feedback form at the back of this report and we would
appreciate hearing from our stakeholders Let us know what you
think about this report and where we can improve
Nieumll Pretorius
Chief Executive Officer
16 September 2009
DRD SDR2009_25Nov 112509 300 PM Page 8
DRDGOLD Sustainable Development Report 2009 8
Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates
A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34
Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting
As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules
Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)
The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008
The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and
conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards
The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009
Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee
Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter
DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment
The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest
The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage
Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings
Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group
An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services
While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group
DRD SDR2009_25Nov 112509 300 PM Page 9
DRDGOLD Sustainable Development Report 2009 9
Directors and employees are expected to treat all information
pertaining to the group which is not in the public domain in the
strictest confidence and may not divulge such information to any
third party without permission even after the termination of their
services with the group
The company has an anonymous whistle-blower hotline to deal
with complaints from within or outside the company and the
Group Risk Manager provides the Audit Committee with a regular
report on the whistle-blowing programme
Risk management Responsibility for risk management at DRDGOLD starts with the
Board of Directors The overall objective of the Risk Committee is to
assist the board in the discharge of its duties relating to risk
management and control responsibilities assurance issues health
safety and environmental compliance and the monitoring and
reporting of all these matters Responsibility for the quality
integrity and reliability of the groups risk management rests with
the Risk Committee which facilitates communication between the
board the Audit Committee internal auditors and other parties
engaged in risk management activities
The Risk Committee meets every quarter and reports back to the
board Additional ad hoc meetings may be arranged as and when
required Certain members of executive management are invited to
attend Risk Committee meetings on a regular basis including the
Group Risk Manager the Group Financial Manager and the Group
Legal Counsel
The Risk Committee ensures that
an effective risk management programme is implemented and
maintained
risk management awareness is promoted among all employees
risk programmes (financinginsurance) adequately protect the
company against catastrophic risks
regular risk assessments are conducted
the total cost of risk in the long term is reduced
the protection of DRDGOLDs assets is promoted throughout
the group
the health safety and well-being of all stakeholders is
improved and
DRDGOLDs activities are carried out in such a way that the
safety and health of employees is ensured
In addition to strategic and corporate risks the committee also
reviews the effectiveness of the operational risk programmes A
heat map which brings together all the risks that the group faces
is tabled at every meeting
It is widely recognised that integrating risk management
philosophy and practice into the culture of the organisation is an
ongoing process In order to be effective it must be a continuous
dynamic and developing process that addresses risk across the
spectrum ndash from strategic to operational risk Thus a variety of
surveys benchmarks reviews and activities are conducted
throughout the year and these are the building blocks of the risk
management programme
This detailed risk management programme has been in place at
DRDGOLD for a number of years and its effectiveness has ensured
that it forms an integral part of the management of the company
The risk register contains all the relevant information from across
the group and this is updated on a quarterly basis
The process of conducting hazard identification and risk assessment
for the operations is based on
baseline assessment ndash covering the whole operation in a
systematic way in respect of all risks
issues-based assessment ndash specific assessments carried out
prior to the start of an activity and
continuous assessment ndash health safety and environmental
assessments form part of daily activities
DRDGOLD staff members involved in operational risk management
use risk management information and detailed analyses to assist
in decision-making DRDGOLD therefore employs the latest
technology and information wherever required
The system to manage risk involves all significant business and
operational risks which could undermine the achievement of
business objectives and the preservation of shareholder value
The significant risks facing DRDGOLD including those at an
operational level have been identified People have been assigned
to each risk and the results of their work to improve controls are
reviewed by senior management through regular risk meetings
In addition to the above initiatives DRDGOLD also employs thirdshy
party consultants to benchmark its operations against other mining
operations throughout South Africa and more than 300 different
mining companies worldwide
Communication with stakeholders DRDGOLD gives substance to its commitment to transparency
through the implementation of an integrated and sustained
programme of communication directed at its various stakeholders
These include employees unions communities government and
regulators non-governmental organisations suppliers contractors
customers and members of the public
Effective two-way communication with the communities within
which it operates is an area of growing importance to the group
While increasingly much of this communication is required by
regulation and statute and takes the form of formal consultation
with interested and affected parties operational management has
come to recognise the value of community understanding of and
support for managementrsquos actions and of the role that effective
communication plays in securing these
Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in
respect of non-compliance with laws or regulations The company
is engaged in some legal actions the details of which appear on
pages 113 to 114 of the 2009 Annual Report
DRD SDR2009_25Nov 112509 300 PM Page 10
Economic performance
As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people
employees and their dependants investors suppliers and members of the communities
surrounding the companyrsquos operations
The companyrsquos strategy in the short and medium term is to enhance shareholder value by
reducing risk
controlling costs
managing margins and
taking a disciplined approach to growth
One of the most significant operational developments for DRDGOLD in 2009 was the progress
made in shifting the balance of its production towards lower-risk and less costly surface
retreatment operations
During the year under review the company rejoined the Chamber of Mines of South Africa as an
advocacy member The chamber is a voluntary membership private sector employer organisation
and is the principal advocate of major policy positions endorsed by the mining employers and
represents these to various organs of South African national and provincial governments and to
other relevant policy-making and opinion-forming entities both within the country and abroad
The chamber also works closely with the various employee organisations in formulating these
positions where appropriate
DRDGOLD Sustainable Development Report 2009 10
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 6
DRDGOLD Sustainable Development Report 2009 6
Letter from the CEO
Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect
myriad stakeholders employees unions communities investors
government and regulators non-governmental organisations
suppliers contractors and members of the general public We
also acknowledge that as a South African company we need to play
a role in transforming the economy and society to redress the
imbalances of the past This ranges from developing employees
from the ranks of the previously disadvantaged to supporting
community projects that will create sustainable livelihoods
This was a challenging year for the mining industry in South Africa
in general and at DRDGOLD we experienced some serious
operational difficulties Safety and risk considerations meant that
we had no choice but to stop underground mining at ERPM while
the loss of high-grade panels at Blyvoor combined with the
strengthening of the rand and an increase in the cost of electricity
of 33 resulted in our starting the process of right-sizing Blyvoor
shortly after year-end These decisions were not taken either
lightly or easily We know only too acutely that each of our
employees supports a number of dependants and that job losses
have a knock-on effect in the surrounding communities
However had we not acted as we did we would have put lives in
danger and the companyrsquos future in jeopardy with potentially far
greater negative results
Certainly it is at times like these that sustainability assumes even
greater significance It demonstrates the value of people gaining
the skills to ensure lifelong employment and the importance of the
development and diversification of the local economy so that
communities can continue and prosper when mining activities
decrease or stop completely In this respect we are proud of the
Ekurhuleni Business Development Academy (EBDA) which we have
established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report
Safety issues Of all the aspects of sustainability that we cover in this report
safety is the most important It is with deep regret that we must
advise that five people died in work-related incidents at DRDGOLD
operations during the 2009 financial year We extend our
condolences to the families friends and colleagues of those who
lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa
(4 September 2008) and Annanias Timbe (8 October 2008) at
Blyvoor and Pieter Jonker and Fernando Vate both on
19 September 2008 at ERPM
Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455
There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor
DRD SDR2009_25Nov 112509 300 PM Page 7
DRDGOLD Sustainable Development Report 2009 7
followed by the other DRDGOLD operations We trust that this will
lead to further improvements in our safety performance in the
2010 financial year
Progress with transformation We are pleased to have made further progress in terms of
meeting the requirements of the Mining Charter At Blyvoor the
percentage of historically disadvantaged South Africans (HDSAs)
in management rose from 18 to 25 Crown reached 33 in
2009 At 93 Crown is close to meeting the Mining Charterrsquos
target of women making up 10 of the workforce while at
Blyvoor women comprise 75 of the employee complement up
from 65 last year
We are committed to nurturing talent within the company through
learnerships internships and tertiary education programmes
During 2009 we ran a very successful group-wide pilot
Junior Leadership Programme which combined theoretical with
practical study
Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an
environmental threat and it is a challenge that DRDGOLD is facing
together with several other mining companies Cost-effective
sustainable solutions need to be found Together with those
players DRDGOLD participates in two Section 21 companies the
Western Basin Environmental Corporation and the Central Basin
Environmental Corporation We are hopeful that this consultative
approach will find long-term workable solutions These companies
have commissioned Western Utilities Corporation a wholly owned
subsidiary of AIM-listed Watermark Global plc to develop a holistic
integrated plan Progress is being made towards the establishment
of large-scale water treatment plants with the right technology to
treat AMD to produce both drinking and industrial water More
detailed information on this can be found in the Environment
section of this report
Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have
aligned with the requirements of the Global Reporting Initiativersquos
G3 guidelines We have declared a C level of reporting for the
2009 financial year
We acknowledge that we still have a long way to go before
we meet many of the GRI requirementsWhat is important however
is that we have set these goals for ourselves and are moving in
the right direction The boardrsquos establishment of the Transformation
and Sustainable Development Committee towards the end of the
last financial year is further evidence of our commitment With an
independent non-executive chairman at its helm this committee is
charged with ensuring that DRDGOLD conducts its business in a
manner conducive to the attainment of internationally acceptable
sustainability standards and with promoting transformation
There is a feedback form at the back of this report and we would
appreciate hearing from our stakeholders Let us know what you
think about this report and where we can improve
Nieumll Pretorius
Chief Executive Officer
16 September 2009
DRD SDR2009_25Nov 112509 300 PM Page 8
DRDGOLD Sustainable Development Report 2009 8
Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates
A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34
Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting
As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules
Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)
The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008
The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and
conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards
The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009
Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee
Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter
DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment
The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest
The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage
Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings
Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group
An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services
While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group
DRD SDR2009_25Nov 112509 300 PM Page 9
DRDGOLD Sustainable Development Report 2009 9
Directors and employees are expected to treat all information
pertaining to the group which is not in the public domain in the
strictest confidence and may not divulge such information to any
third party without permission even after the termination of their
services with the group
The company has an anonymous whistle-blower hotline to deal
with complaints from within or outside the company and the
Group Risk Manager provides the Audit Committee with a regular
report on the whistle-blowing programme
Risk management Responsibility for risk management at DRDGOLD starts with the
Board of Directors The overall objective of the Risk Committee is to
assist the board in the discharge of its duties relating to risk
management and control responsibilities assurance issues health
safety and environmental compliance and the monitoring and
reporting of all these matters Responsibility for the quality
integrity and reliability of the groups risk management rests with
the Risk Committee which facilitates communication between the
board the Audit Committee internal auditors and other parties
engaged in risk management activities
The Risk Committee meets every quarter and reports back to the
board Additional ad hoc meetings may be arranged as and when
required Certain members of executive management are invited to
attend Risk Committee meetings on a regular basis including the
Group Risk Manager the Group Financial Manager and the Group
Legal Counsel
The Risk Committee ensures that
an effective risk management programme is implemented and
maintained
risk management awareness is promoted among all employees
risk programmes (financinginsurance) adequately protect the
company against catastrophic risks
regular risk assessments are conducted
the total cost of risk in the long term is reduced
the protection of DRDGOLDs assets is promoted throughout
the group
the health safety and well-being of all stakeholders is
improved and
DRDGOLDs activities are carried out in such a way that the
safety and health of employees is ensured
In addition to strategic and corporate risks the committee also
reviews the effectiveness of the operational risk programmes A
heat map which brings together all the risks that the group faces
is tabled at every meeting
It is widely recognised that integrating risk management
philosophy and practice into the culture of the organisation is an
ongoing process In order to be effective it must be a continuous
dynamic and developing process that addresses risk across the
spectrum ndash from strategic to operational risk Thus a variety of
surveys benchmarks reviews and activities are conducted
throughout the year and these are the building blocks of the risk
management programme
This detailed risk management programme has been in place at
DRDGOLD for a number of years and its effectiveness has ensured
that it forms an integral part of the management of the company
The risk register contains all the relevant information from across
the group and this is updated on a quarterly basis
The process of conducting hazard identification and risk assessment
for the operations is based on
baseline assessment ndash covering the whole operation in a
systematic way in respect of all risks
issues-based assessment ndash specific assessments carried out
prior to the start of an activity and
continuous assessment ndash health safety and environmental
assessments form part of daily activities
DRDGOLD staff members involved in operational risk management
use risk management information and detailed analyses to assist
in decision-making DRDGOLD therefore employs the latest
technology and information wherever required
The system to manage risk involves all significant business and
operational risks which could undermine the achievement of
business objectives and the preservation of shareholder value
The significant risks facing DRDGOLD including those at an
operational level have been identified People have been assigned
to each risk and the results of their work to improve controls are
reviewed by senior management through regular risk meetings
In addition to the above initiatives DRDGOLD also employs thirdshy
party consultants to benchmark its operations against other mining
operations throughout South Africa and more than 300 different
mining companies worldwide
Communication with stakeholders DRDGOLD gives substance to its commitment to transparency
through the implementation of an integrated and sustained
programme of communication directed at its various stakeholders
These include employees unions communities government and
regulators non-governmental organisations suppliers contractors
customers and members of the public
Effective two-way communication with the communities within
which it operates is an area of growing importance to the group
While increasingly much of this communication is required by
regulation and statute and takes the form of formal consultation
with interested and affected parties operational management has
come to recognise the value of community understanding of and
support for managementrsquos actions and of the role that effective
communication plays in securing these
Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in
respect of non-compliance with laws or regulations The company
is engaged in some legal actions the details of which appear on
pages 113 to 114 of the 2009 Annual Report
DRD SDR2009_25Nov 112509 300 PM Page 10
Economic performance
As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people
employees and their dependants investors suppliers and members of the communities
surrounding the companyrsquos operations
The companyrsquos strategy in the short and medium term is to enhance shareholder value by
reducing risk
controlling costs
managing margins and
taking a disciplined approach to growth
One of the most significant operational developments for DRDGOLD in 2009 was the progress
made in shifting the balance of its production towards lower-risk and less costly surface
retreatment operations
During the year under review the company rejoined the Chamber of Mines of South Africa as an
advocacy member The chamber is a voluntary membership private sector employer organisation
and is the principal advocate of major policy positions endorsed by the mining employers and
represents these to various organs of South African national and provincial governments and to
other relevant policy-making and opinion-forming entities both within the country and abroad
The chamber also works closely with the various employee organisations in formulating these
positions where appropriate
DRDGOLD Sustainable Development Report 2009 10
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 7
DRDGOLD Sustainable Development Report 2009 7
followed by the other DRDGOLD operations We trust that this will
lead to further improvements in our safety performance in the
2010 financial year
Progress with transformation We are pleased to have made further progress in terms of
meeting the requirements of the Mining Charter At Blyvoor the
percentage of historically disadvantaged South Africans (HDSAs)
in management rose from 18 to 25 Crown reached 33 in
2009 At 93 Crown is close to meeting the Mining Charterrsquos
target of women making up 10 of the workforce while at
Blyvoor women comprise 75 of the employee complement up
from 65 last year
We are committed to nurturing talent within the company through
learnerships internships and tertiary education programmes
During 2009 we ran a very successful group-wide pilot
Junior Leadership Programme which combined theoretical with
practical study
Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an
environmental threat and it is a challenge that DRDGOLD is facing
together with several other mining companies Cost-effective
sustainable solutions need to be found Together with those
players DRDGOLD participates in two Section 21 companies the
Western Basin Environmental Corporation and the Central Basin
Environmental Corporation We are hopeful that this consultative
approach will find long-term workable solutions These companies
have commissioned Western Utilities Corporation a wholly owned
subsidiary of AIM-listed Watermark Global plc to develop a holistic
integrated plan Progress is being made towards the establishment
of large-scale water treatment plants with the right technology to
treat AMD to produce both drinking and industrial water More
detailed information on this can be found in the Environment
section of this report
Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have
aligned with the requirements of the Global Reporting Initiativersquos
G3 guidelines We have declared a C level of reporting for the
2009 financial year
We acknowledge that we still have a long way to go before
we meet many of the GRI requirementsWhat is important however
is that we have set these goals for ourselves and are moving in
the right direction The boardrsquos establishment of the Transformation
and Sustainable Development Committee towards the end of the
last financial year is further evidence of our commitment With an
independent non-executive chairman at its helm this committee is
charged with ensuring that DRDGOLD conducts its business in a
manner conducive to the attainment of internationally acceptable
sustainability standards and with promoting transformation
There is a feedback form at the back of this report and we would
appreciate hearing from our stakeholders Let us know what you
think about this report and where we can improve
Nieumll Pretorius
Chief Executive Officer
16 September 2009
DRD SDR2009_25Nov 112509 300 PM Page 8
DRDGOLD Sustainable Development Report 2009 8
Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates
A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34
Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting
As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules
Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)
The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008
The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and
conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards
The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009
Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee
Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter
DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment
The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest
The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage
Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings
Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group
An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services
While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group
DRD SDR2009_25Nov 112509 300 PM Page 9
DRDGOLD Sustainable Development Report 2009 9
Directors and employees are expected to treat all information
pertaining to the group which is not in the public domain in the
strictest confidence and may not divulge such information to any
third party without permission even after the termination of their
services with the group
The company has an anonymous whistle-blower hotline to deal
with complaints from within or outside the company and the
Group Risk Manager provides the Audit Committee with a regular
report on the whistle-blowing programme
Risk management Responsibility for risk management at DRDGOLD starts with the
Board of Directors The overall objective of the Risk Committee is to
assist the board in the discharge of its duties relating to risk
management and control responsibilities assurance issues health
safety and environmental compliance and the monitoring and
reporting of all these matters Responsibility for the quality
integrity and reliability of the groups risk management rests with
the Risk Committee which facilitates communication between the
board the Audit Committee internal auditors and other parties
engaged in risk management activities
The Risk Committee meets every quarter and reports back to the
board Additional ad hoc meetings may be arranged as and when
required Certain members of executive management are invited to
attend Risk Committee meetings on a regular basis including the
Group Risk Manager the Group Financial Manager and the Group
Legal Counsel
The Risk Committee ensures that
an effective risk management programme is implemented and
maintained
risk management awareness is promoted among all employees
risk programmes (financinginsurance) adequately protect the
company against catastrophic risks
regular risk assessments are conducted
the total cost of risk in the long term is reduced
the protection of DRDGOLDs assets is promoted throughout
the group
the health safety and well-being of all stakeholders is
improved and
DRDGOLDs activities are carried out in such a way that the
safety and health of employees is ensured
In addition to strategic and corporate risks the committee also
reviews the effectiveness of the operational risk programmes A
heat map which brings together all the risks that the group faces
is tabled at every meeting
It is widely recognised that integrating risk management
philosophy and practice into the culture of the organisation is an
ongoing process In order to be effective it must be a continuous
dynamic and developing process that addresses risk across the
spectrum ndash from strategic to operational risk Thus a variety of
surveys benchmarks reviews and activities are conducted
throughout the year and these are the building blocks of the risk
management programme
This detailed risk management programme has been in place at
DRDGOLD for a number of years and its effectiveness has ensured
that it forms an integral part of the management of the company
The risk register contains all the relevant information from across
the group and this is updated on a quarterly basis
The process of conducting hazard identification and risk assessment
for the operations is based on
baseline assessment ndash covering the whole operation in a
systematic way in respect of all risks
issues-based assessment ndash specific assessments carried out
prior to the start of an activity and
continuous assessment ndash health safety and environmental
assessments form part of daily activities
DRDGOLD staff members involved in operational risk management
use risk management information and detailed analyses to assist
in decision-making DRDGOLD therefore employs the latest
technology and information wherever required
The system to manage risk involves all significant business and
operational risks which could undermine the achievement of
business objectives and the preservation of shareholder value
The significant risks facing DRDGOLD including those at an
operational level have been identified People have been assigned
to each risk and the results of their work to improve controls are
reviewed by senior management through regular risk meetings
In addition to the above initiatives DRDGOLD also employs thirdshy
party consultants to benchmark its operations against other mining
operations throughout South Africa and more than 300 different
mining companies worldwide
Communication with stakeholders DRDGOLD gives substance to its commitment to transparency
through the implementation of an integrated and sustained
programme of communication directed at its various stakeholders
These include employees unions communities government and
regulators non-governmental organisations suppliers contractors
customers and members of the public
Effective two-way communication with the communities within
which it operates is an area of growing importance to the group
While increasingly much of this communication is required by
regulation and statute and takes the form of formal consultation
with interested and affected parties operational management has
come to recognise the value of community understanding of and
support for managementrsquos actions and of the role that effective
communication plays in securing these
Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in
respect of non-compliance with laws or regulations The company
is engaged in some legal actions the details of which appear on
pages 113 to 114 of the 2009 Annual Report
DRD SDR2009_25Nov 112509 300 PM Page 10
Economic performance
As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people
employees and their dependants investors suppliers and members of the communities
surrounding the companyrsquos operations
The companyrsquos strategy in the short and medium term is to enhance shareholder value by
reducing risk
controlling costs
managing margins and
taking a disciplined approach to growth
One of the most significant operational developments for DRDGOLD in 2009 was the progress
made in shifting the balance of its production towards lower-risk and less costly surface
retreatment operations
During the year under review the company rejoined the Chamber of Mines of South Africa as an
advocacy member The chamber is a voluntary membership private sector employer organisation
and is the principal advocate of major policy positions endorsed by the mining employers and
represents these to various organs of South African national and provincial governments and to
other relevant policy-making and opinion-forming entities both within the country and abroad
The chamber also works closely with the various employee organisations in formulating these
positions where appropriate
DRDGOLD Sustainable Development Report 2009 10
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 8
DRDGOLD Sustainable Development Report 2009 8
Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates
A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34
Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting
As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules
Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)
The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008
The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and
conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards
The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009
Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee
Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter
DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment
The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest
The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage
Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings
Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group
An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services
While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group
DRD SDR2009_25Nov 112509 300 PM Page 9
DRDGOLD Sustainable Development Report 2009 9
Directors and employees are expected to treat all information
pertaining to the group which is not in the public domain in the
strictest confidence and may not divulge such information to any
third party without permission even after the termination of their
services with the group
The company has an anonymous whistle-blower hotline to deal
with complaints from within or outside the company and the
Group Risk Manager provides the Audit Committee with a regular
report on the whistle-blowing programme
Risk management Responsibility for risk management at DRDGOLD starts with the
Board of Directors The overall objective of the Risk Committee is to
assist the board in the discharge of its duties relating to risk
management and control responsibilities assurance issues health
safety and environmental compliance and the monitoring and
reporting of all these matters Responsibility for the quality
integrity and reliability of the groups risk management rests with
the Risk Committee which facilitates communication between the
board the Audit Committee internal auditors and other parties
engaged in risk management activities
The Risk Committee meets every quarter and reports back to the
board Additional ad hoc meetings may be arranged as and when
required Certain members of executive management are invited to
attend Risk Committee meetings on a regular basis including the
Group Risk Manager the Group Financial Manager and the Group
Legal Counsel
The Risk Committee ensures that
an effective risk management programme is implemented and
maintained
risk management awareness is promoted among all employees
risk programmes (financinginsurance) adequately protect the
company against catastrophic risks
regular risk assessments are conducted
the total cost of risk in the long term is reduced
the protection of DRDGOLDs assets is promoted throughout
the group
the health safety and well-being of all stakeholders is
improved and
DRDGOLDs activities are carried out in such a way that the
safety and health of employees is ensured
In addition to strategic and corporate risks the committee also
reviews the effectiveness of the operational risk programmes A
heat map which brings together all the risks that the group faces
is tabled at every meeting
It is widely recognised that integrating risk management
philosophy and practice into the culture of the organisation is an
ongoing process In order to be effective it must be a continuous
dynamic and developing process that addresses risk across the
spectrum ndash from strategic to operational risk Thus a variety of
surveys benchmarks reviews and activities are conducted
throughout the year and these are the building blocks of the risk
management programme
This detailed risk management programme has been in place at
DRDGOLD for a number of years and its effectiveness has ensured
that it forms an integral part of the management of the company
The risk register contains all the relevant information from across
the group and this is updated on a quarterly basis
The process of conducting hazard identification and risk assessment
for the operations is based on
baseline assessment ndash covering the whole operation in a
systematic way in respect of all risks
issues-based assessment ndash specific assessments carried out
prior to the start of an activity and
continuous assessment ndash health safety and environmental
assessments form part of daily activities
DRDGOLD staff members involved in operational risk management
use risk management information and detailed analyses to assist
in decision-making DRDGOLD therefore employs the latest
technology and information wherever required
The system to manage risk involves all significant business and
operational risks which could undermine the achievement of
business objectives and the preservation of shareholder value
The significant risks facing DRDGOLD including those at an
operational level have been identified People have been assigned
to each risk and the results of their work to improve controls are
reviewed by senior management through regular risk meetings
In addition to the above initiatives DRDGOLD also employs thirdshy
party consultants to benchmark its operations against other mining
operations throughout South Africa and more than 300 different
mining companies worldwide
Communication with stakeholders DRDGOLD gives substance to its commitment to transparency
through the implementation of an integrated and sustained
programme of communication directed at its various stakeholders
These include employees unions communities government and
regulators non-governmental organisations suppliers contractors
customers and members of the public
Effective two-way communication with the communities within
which it operates is an area of growing importance to the group
While increasingly much of this communication is required by
regulation and statute and takes the form of formal consultation
with interested and affected parties operational management has
come to recognise the value of community understanding of and
support for managementrsquos actions and of the role that effective
communication plays in securing these
Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in
respect of non-compliance with laws or regulations The company
is engaged in some legal actions the details of which appear on
pages 113 to 114 of the 2009 Annual Report
DRD SDR2009_25Nov 112509 300 PM Page 10
Economic performance
As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people
employees and their dependants investors suppliers and members of the communities
surrounding the companyrsquos operations
The companyrsquos strategy in the short and medium term is to enhance shareholder value by
reducing risk
controlling costs
managing margins and
taking a disciplined approach to growth
One of the most significant operational developments for DRDGOLD in 2009 was the progress
made in shifting the balance of its production towards lower-risk and less costly surface
retreatment operations
During the year under review the company rejoined the Chamber of Mines of South Africa as an
advocacy member The chamber is a voluntary membership private sector employer organisation
and is the principal advocate of major policy positions endorsed by the mining employers and
represents these to various organs of South African national and provincial governments and to
other relevant policy-making and opinion-forming entities both within the country and abroad
The chamber also works closely with the various employee organisations in formulating these
positions where appropriate
DRDGOLD Sustainable Development Report 2009 10
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 9
DRDGOLD Sustainable Development Report 2009 9
Directors and employees are expected to treat all information
pertaining to the group which is not in the public domain in the
strictest confidence and may not divulge such information to any
third party without permission even after the termination of their
services with the group
The company has an anonymous whistle-blower hotline to deal
with complaints from within or outside the company and the
Group Risk Manager provides the Audit Committee with a regular
report on the whistle-blowing programme
Risk management Responsibility for risk management at DRDGOLD starts with the
Board of Directors The overall objective of the Risk Committee is to
assist the board in the discharge of its duties relating to risk
management and control responsibilities assurance issues health
safety and environmental compliance and the monitoring and
reporting of all these matters Responsibility for the quality
integrity and reliability of the groups risk management rests with
the Risk Committee which facilitates communication between the
board the Audit Committee internal auditors and other parties
engaged in risk management activities
The Risk Committee meets every quarter and reports back to the
board Additional ad hoc meetings may be arranged as and when
required Certain members of executive management are invited to
attend Risk Committee meetings on a regular basis including the
Group Risk Manager the Group Financial Manager and the Group
Legal Counsel
The Risk Committee ensures that
an effective risk management programme is implemented and
maintained
risk management awareness is promoted among all employees
risk programmes (financinginsurance) adequately protect the
company against catastrophic risks
regular risk assessments are conducted
the total cost of risk in the long term is reduced
the protection of DRDGOLDs assets is promoted throughout
the group
the health safety and well-being of all stakeholders is
improved and
DRDGOLDs activities are carried out in such a way that the
safety and health of employees is ensured
In addition to strategic and corporate risks the committee also
reviews the effectiveness of the operational risk programmes A
heat map which brings together all the risks that the group faces
is tabled at every meeting
It is widely recognised that integrating risk management
philosophy and practice into the culture of the organisation is an
ongoing process In order to be effective it must be a continuous
dynamic and developing process that addresses risk across the
spectrum ndash from strategic to operational risk Thus a variety of
surveys benchmarks reviews and activities are conducted
throughout the year and these are the building blocks of the risk
management programme
This detailed risk management programme has been in place at
DRDGOLD for a number of years and its effectiveness has ensured
that it forms an integral part of the management of the company
The risk register contains all the relevant information from across
the group and this is updated on a quarterly basis
The process of conducting hazard identification and risk assessment
for the operations is based on
baseline assessment ndash covering the whole operation in a
systematic way in respect of all risks
issues-based assessment ndash specific assessments carried out
prior to the start of an activity and
continuous assessment ndash health safety and environmental
assessments form part of daily activities
DRDGOLD staff members involved in operational risk management
use risk management information and detailed analyses to assist
in decision-making DRDGOLD therefore employs the latest
technology and information wherever required
The system to manage risk involves all significant business and
operational risks which could undermine the achievement of
business objectives and the preservation of shareholder value
The significant risks facing DRDGOLD including those at an
operational level have been identified People have been assigned
to each risk and the results of their work to improve controls are
reviewed by senior management through regular risk meetings
In addition to the above initiatives DRDGOLD also employs thirdshy
party consultants to benchmark its operations against other mining
operations throughout South Africa and more than 300 different
mining companies worldwide
Communication with stakeholders DRDGOLD gives substance to its commitment to transparency
through the implementation of an integrated and sustained
programme of communication directed at its various stakeholders
These include employees unions communities government and
regulators non-governmental organisations suppliers contractors
customers and members of the public
Effective two-way communication with the communities within
which it operates is an area of growing importance to the group
While increasingly much of this communication is required by
regulation and statute and takes the form of formal consultation
with interested and affected parties operational management has
come to recognise the value of community understanding of and
support for managementrsquos actions and of the role that effective
communication plays in securing these
Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in
respect of non-compliance with laws or regulations The company
is engaged in some legal actions the details of which appear on
pages 113 to 114 of the 2009 Annual Report
DRD SDR2009_25Nov 112509 300 PM Page 10
Economic performance
As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people
employees and their dependants investors suppliers and members of the communities
surrounding the companyrsquos operations
The companyrsquos strategy in the short and medium term is to enhance shareholder value by
reducing risk
controlling costs
managing margins and
taking a disciplined approach to growth
One of the most significant operational developments for DRDGOLD in 2009 was the progress
made in shifting the balance of its production towards lower-risk and less costly surface
retreatment operations
During the year under review the company rejoined the Chamber of Mines of South Africa as an
advocacy member The chamber is a voluntary membership private sector employer organisation
and is the principal advocate of major policy positions endorsed by the mining employers and
represents these to various organs of South African national and provincial governments and to
other relevant policy-making and opinion-forming entities both within the country and abroad
The chamber also works closely with the various employee organisations in formulating these
positions where appropriate
DRDGOLD Sustainable Development Report 2009 10
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 10
Economic performance
As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people
employees and their dependants investors suppliers and members of the communities
surrounding the companyrsquos operations
The companyrsquos strategy in the short and medium term is to enhance shareholder value by
reducing risk
controlling costs
managing margins and
taking a disciplined approach to growth
One of the most significant operational developments for DRDGOLD in 2009 was the progress
made in shifting the balance of its production towards lower-risk and less costly surface
retreatment operations
During the year under review the company rejoined the Chamber of Mines of South Africa as an
advocacy member The chamber is a voluntary membership private sector employer organisation
and is the principal advocate of major policy positions endorsed by the mining employers and
represents these to various organs of South African national and provincial governments and to
other relevant policy-making and opinion-forming entities both within the country and abroad
The chamber also works closely with the various employee organisations in formulating these
positions where appropriate
DRDGOLD Sustainable Development Report 2009 10
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 11
DRDGOLD Sustainable Development Report 2009 11
Operational and financial performance The average gold price received for the financial year was $873oz
compared with $821oz the previous year illustrating that the
precious metal has retained its status as a store of value during
times of financial turmoil DRDGOLDrsquos performance in the first
three quarters was excellent ndash the fourth quarter demonstrated the
companyrsquos exposure when the rand strengthens against the dollar
rand gold receipts fall and operating costs rise While the average
rand gold price received in the third quarter was R292 369kg it fell
to R244 927kg in the fourth quarter
For an in-depth look at DRDGOLDrsquos operational and financial
performance during the financial year under review please refer to
the Annual Report 2009 at wwwdrdgoldcom The key features of
the year are set out below
Gold production decreased by 23 to 247 690 ounces
(2008 321 432 ounces) The main reasons for this decline
were the suspension of underground mining at ERPM in the
second quarter and the downward adjustment to throughput
at Crown as part of the decommissioning of the Crown Tailings
Deposition Facility Also contributing were several operational
challenges at Blyvoor in particular the reduction in production
days following two fatalities in the first half of the year as well
as the loss ndash through seismicity ndash of high-grade panels during
the fourth quarter at No 5 Shaft
Total operating costs increased by 40 to R219 024kg
(2008 R162 794kg)
Operating profit at R2234 million was down by 27
Net profit declined by 91 to R1107 million the R1 2251 million
recorded in 2008 reflected the sale of the Australasian assets
Net asset value per share rose 21 to 419 South African cents
(2008 347 SA cents)
Dividend payments to shareholders amounted to R377 million
(10 SA cents per share)
Market capitalisation was R23 billion ($2869 million)
compared with R24 billion ($2907 million) in the previous year
Economic value added DRDGOLD continued to add significant value during the year The
value-added statement for 2009 appears on page 12 The key
features are discussed below
In 2009 R673 million was paid to employees in the form of
salaries and wages as well as contributions to retirement and
health care funds representing 68 of the total value
distributed during the year (2008 R658 million 69)
Although this cannot be quantified employees are likely to
have spent a sizeable portion of their disposable income in the
region in which they work
Taxes of R46 million were paid to local and national
government ndash the same amount paid in 2008 No significant
financial benefits were received from government
The company spent R13 billion with the suppliers of capital and
consumer goods and services during the 2009 financial year
(2008 R13 billion)
350 000 1000
300 000 800
250 000
600200 000
150 000
100 000
50 000
0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Average Rkg received Average $oz received
300
250
200
150
100
50
0 2005 2006 2007 2008 2009
800
700
600
500
400
300
200
100
0 2005 2006 2007 2008 2009
250
200
150
100
50
0 2005 2006 2007 2008 2009
400
200
Aver
age
oper
atin
g co
sts
Gol
d pr
oduc
tion
(00
0oz)
Aver
age
gold
pric
e re
ceiv
edAv
erag
e R
kg a
nd $
oz
(R
rsquo000
kg)
200
5-09
20
05-0
9 (R
rsquo000
kg)
200
5-09
pr
ice
rece
ived
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 12
DRDGOLD Sustainable Development Report 2009 12
Economic performance
Valu
e di
strib
uted
A
nnua
l cap
ital
exp
endi
ture
in 2
009
()
(Rm
) 20
05-0
9
400
350
300
250
200
150
100
50
0
Shareholders DRDGOLD has its primary listing on the JSE Limited in
Johannesburg South Africa and its secondary listing on the Nasdaq
Capital Market in the United States By far the largest percentage
of shareholders 72 are in the United States followed by
South Africa at 15 and Europe at 10 At 30 June 2009
institutions and bodies corporate held 936 of the issued shares
DRDGOLDrsquos shares are very liquid with about 80 being held in
free float Around 70 of trading occurs on Nasdaq Volumes
traded and share prices during the financial year under review are
2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid
R377 million in dividends during the year
Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)
The breakdown is as follows Employees 68
R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4
Most of the capital expenditure incurred related to projects to
increase production For example at ErgoGold the Elsburg
reclamation site was completed while at Blyvoor opening up and
development and the Way Ahead Project were the main components
Value added statement for the year ended 30 June 2009
Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations
2009 2008
Rm Rm
VALUE ADDED
Sale of precious metals 1 911 1 933
Less cost of materials and services (1 133) (1 080)
Value added by operations 778 79 853 90
Income from investments 206 21 95 10
Total value added 984 100 948 100
VALUE DISTRIBUTED
Employees
Salaries wages and other benefits 673 68 658 69
Government
Current taxation 46 5 46 5
Providers of capital
Dividends to shareholders 38 4 ndash ndash
Interest on borrowings 4 0 36 4
Total value distributed 761 77 740 78
Reinvested in the group 223 23 208 22
Depreciation 99 70
Reinvested in the group 124 138
Total value distributed 984 100 948 100
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 13
Total 1 284 948 360 771 788 755
DRDGOLD Sustainable Development Report 2009 13
JSE closing prices and volumes traded Nasdaq closing prices and volumes traded
SA cents US dollars
BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as
R of total of total
545
685
666
602
600
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
1 000
900
800
700
600
500
400
300
200
100
0
1 Jul 08 1 Jun 09
Volumes traded JSE closing prices
Black economic empowerment Black economic empowerment (BEE) in South Africa covers three
areas equity ownership affirmative procurement and employment
equity The last-mentioned is dealt with in the Employment section
of this report
With regard to the first aspect DRDGOLD is in compliance with the
BEE equity target of 26 set by the South African Broad-based
Socio-economic Empowerment Charter (the Mining Charter) for
2014 It achieved this goal in the 2007 financial year
The companyrsquos BEE partner Khumo Gold acquired a 15 interest
in DRDGOLD SA in 2005 At that time Khumo Gold was granted an
option exercisable over the next three years to acquire a further
11 interest in DRDGOLD SA which included a 6 stake to be
placed in a new proposed employee trust
In 2006 Khumo Gold acquired 60 000 ordinary shares in
DRDGOLD SA which increased its stake to 20 In addition
as promoter for an employee trust it exercised its option to
acquire a further 60 000 ordinary shares This trust the DRDSA
Empowerment Trust has a 6 holding in DRDGOLD SA and it
benefits a broad group of historically disadvantaged employees
Khumo Gold and the DRDSA Empowerment Trust also own
preference shares in Blyvoor Crown and ERPM which entitle them
to receive a dividend of R026 for every R074 paid by these
10
8
6
4
2
0
1 Jul 08 1 Jun 09
600 000
500 000
400 000
300 000
200 000
100 000
0
Volumes traded Nasdaq closing prices
12 800 000
700 000
companies towards capital and interest on their outstanding intershy
group loans as at 30 November 2005 During the year a preference
dividend of R318 million was paid to Khumo Gold and the trust
Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred
supplier status This means that these companies are on
DRDGOLDrsquos vendor list and provided they are commercially
competitive they are given preference when contracts are awarded
In total DRDGOLDrsquos operations spent R13 billion on procurement
in 2009 of which R7718 million went to BEE companies The
statistics provided include expenditure with state power utility
Eskom and the Rand Water Board
Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines
and sells all of its gold Gold is refined to a purity of approximately
85 at the DRDGOLD operations At Rand Refinery the gold is
purified to 999 and cast into troy ounce bars On the same day
as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos
behalf at the London afternoon fixed price
ERPM
679 638 872
145 202 882
388 274 655
71 831 951
99 474 687
Blyvoor 370 612 525
Crown 258 458 378
ErgoGold 43 243 165
It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the
categories of capital goods consumables and services
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 14
Safety and health
DRDGOLD Sustainable Development Report 2009 14
DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the
Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government
unions and employees
Each operation has a safety department which reports to the general manager of the mine and to
the general manager responsible for projects across the group who submits a quarterly report on
safety and health to the Board of Directors
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 15
DRDGOLD Sustainable Development Report 2009 15
Details of those who died in work-related accidents at DRDGOLD operations in 2009
Occupation and
Name and age Date Operation length of service Home Family
Aron Maqoma (45) 16 August 2008 Blyvoor accident
occurred at 35-29
S2 cross cut
Rock drill operator
26 years
Bizana Eastern Cape
Province South Africa
Aron leaves his
wife Mantswele
and seven children
Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator
six years
Lusikisiki Eastern
Cape Province
South Africa
Velelo leaves his
wife Ncediswa
and six children
Pieter Jonker (49) 19 September 2008 ERPM South West
Vertical Shaft
Timberman 12 years Boksburg Gauteng
Province South Africa
Pieter leaves his
wife Maria and
three children
Fernando Vate (57) 19 September 2008 ERPM South West
Vertical Shaft
Shaft assistant
six years
Canicado
Mozambique
Fernando leaves his
wives Albertina and
Theresa and 13
children
Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close
to three years
Massinga
Mozambique
Annanias leaves his
wife Raquel and
three children
There are health and safety agreements with unions in place at all
the operations About 84 of the workforce is unionised Unions
and employees who are not unionised are involved in monitoring
and assessing health and safety programmes at operational level
A Health and Safety Committee which comprises management
and employees is in place at each operation Mine management
holds a monthly forum meeting with the unions at which members
of the Health and Safety Committee are present Health and safety
issues are among the matters discussed at these sessions
At Blyvoor there are four full-time health and safety representatives
in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the
metallurgical plant This mine has a steering committee which
evaluates occupational health and safety programmes in the
workplace A total of 25 members of the National Union of
Mineworkers (062 of the workforce) serve on these committees
Blyvoor also has a Lifestyle Committee which concentrates on
health issues
There is one full-time safety representative at ERPM and one at
Crown who visits the plants on a rotational basis
Safety DRDGOLD regrets to report that five employees died at work
during the year three at Blyvoor and two at ERPM Two of the fatal
accidents at Blyvoor were caused by seismic events the third
occurred from injuries sustained when the employee fell into the
measuring flask of a loading box At ERPM two employees were
asphyxiated in a shaft conveyance while on their way to conduct
routine water level measurements underground The names and
details of those who lost their lives appear in the table above
The board and management of DRDGOLD extend their sincerest
condolences to the families friends and colleagues of those who died
Regrettably the number of fatalities rose by one in 2009
(2008 four) and consequently there was a deterioration in the
Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million
hours worked The company is pleased to report however that
there were no fatalities in the last eight months of the year
All the other safety indicators ndash measured per million hours worked
ndash at DRDGOLD improved the Lost Time Injury Frequency Rate
(LTIFR) decreased from 867 to 760 the Reportable Injury
Frequency Rate (RIFR) from 361 to 262 and the Dressing Station
Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for
ERPM indicate an improvement in all these categories but this has
to be put into context Underground mining was suspended in
October 2008 The minersquos full labour complement however was
employed and recorded for accident purposes from the 6 October
2008 until 28 February 2009 Surface operations continue at ERPM
More accidents were caused by falls of ground (FOG) than any other
factor with gravity-related and seismic FOG accounting for just over
21 of all accidents These were the major safety risks at Blyvoor
followed by fire and trucks and tramming incidents Until underground
mining was suspended at ERPM falls of ground accounted for 27 of
all accidents As Crown is a surface operation the main safety issues
at this operation were very different and related to conveyor belts the
lifting of equipment reagent handling and machinery
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 16
DRDGOLD Sustainable Development Report 2009 16
Safety and health (continued)
The accompanying table indicates the agencies 040
or causes of all accidents for the DRDGOLD group as a whole during 2009
035
030
DSI
FR
LTIF
R RI
FR
FIFR
pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d pe
r m
illio
n ho
urs
wor
ked
per
mill
ion
hour
s w
orke
d
Agency Total 025
020
015
010
005
000
Blyvoor
50
45
40
35
30
25
20
15
10
05
00
Blyvoor
12
10
9
8
7
6
5
4
3
2
1
Blyvoor
70
60
50
40
30
20
10
0
Blyvoor
2008
Crown ERPM Group
Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8
2008
2008
Crown ERPM
Crown ERPM
2008
Crown ERPM
2009 Rolling rock 35
2009
2009
Group Total 838
2009
Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1
Group
Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39
Rolling material 7 Lifting equipment 7
FOG ndash gravity 19
Fire 15
Slip and fall 14
Materials handling 11
Bumped against 10
Struck by 9
FOG ndash seismic 6
Rolling rock 5
Foreign body 5
Caught between 5
Top
ten
agen
cies
of a
ccid
ents
ndash 2
009
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 17
DRDGOLD Sustainable Development Report 2009 17
During the year Blyvoor lost 2 469 shifts (2008 2 220) through
accidents Crown 321 shifts (2008 253) and ERPM 858 shifts
(2008 2 610) As in the case of the safety indicators discussed
above the cessation of underground mining activities at ERPM
explains the big discrepancy between the figure for this year and
that for the previous year
Section 54 of South Africarsquos Mine Health and Safety Act makes
provision for the Mine Safety Inspectorate to close part or
all of a mine should it believe that any particular occurrence
or condition may endanger the health and safety of any individual
on the mine DRDGOLD received three such instructions during
the year under review Four-day stoppages were imposed at
Blyvoor after the seismic events that led to fatalities on
16 August and 4 September 2008 The Section 54 instruction on
19 September 2008 at ERPM which followed the death by
asphyxiation of two employees has not been lifted to date
As mentioned above no underground mining takes place at this
operation There were no Section 54 orders received for Crown
Addressing safety issues A behaviour-based safety intervention which was signed off by
management and the unions was launched at Blyvoor during 2009
This initiative focuses on reducing behaviour that places employees
at risk and focuses on encouraging safe behaviour No 6 Shaft will
be used as a pilot site for this process which then be rolled out to
the rest of Blyvoor and the other DRDGOLD operations
The lsquoBefore you Workrsquo campaign which focuses on making
workplaces safe before work begins was successfully implemented
during 2008 at Blyvoor and is ongoing
After the establishment of the Mining Industry Occupational
Safety and Health (MOSH) Task Team which followed the Mine
Health and Safety Councilrsquos summit of 2003 a team was set up
to focus on each of the four key health and safety areas in the
South African mining industry leadership noise dust and FOG
Once leading practices had been identified the emphasis
changed to implementation At this stage Community of Practice
for Adoption (COPA) groups were formed The members of these
groups interact to share information in order to help in
overcoming problems associated with implementation and to
bring about continuous improvements in performance During
2009 Blyvoor signed up as a COPA member to support the
adoption team that focuses on falls of ground The COPA to which
the mine belongs is looking at the aspect of entry examinations
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 18
Crown ERPM Total
DRDGOLD Sustainable Development Report 2009 18
Safety and health (continued)
Occupational health disease Blyvoor ERPM Crown
2008 2009 2008 2009 2008 2009
OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0
TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0
ndash new cases 82 49 65 53 7 0
NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1
ndash submissions for possible compensation 27 31 27 52 1 1
ndash cases compensated 22 6 0 0 0 0
Periodic
Blyvoor
644
3 307
185
4 136
823
231
543
1 401
2 175
4 673
Initial 598 1 473
Exit 267 1 853
Crown started a lsquohands and fingersrsquo campaign during the year to
make employees aware of the importance of taking precautions by
wearing the right protective clothing and of vigilance at all times
There was also a major drive to focus attention on the wearing of
eye protection
As ERPM was placed on care and maintenance during the year no
safety-related initiatives were launched at this operation
Health The most significant occupational health diseases at DRDGOLDrsquos
operations are occupational lung disease (OLD) comprising silicosis
and chronic obstructive airway disease (COAD) which can be
caused by exposure to silica dust in operations with quartz-bearing
rock pulmonary tuberculosis (TB) the risk of contracting which is
increased by exposure to silica and when people are HIV positive
and noise-induced hearing loss (NIHL) which can occur when
employees are consistently exposed to high levels of noise ndash in
excess of 85 decibels (dBA) ndash over an extended period of time
Statistics regarding these diseases are provided for the operations
in the table above
DRDGOLDrsquos occupational health strategy has two pillars trying to
eliminate or reduce the cause of health problems and regular
medical monitoring of employees particularly those most at risk in
an effort to prevent such problems occurring and to detect
symptoms as early as possible (See case study Improving
occupational health care at Blyvoor on page 21)
Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was
conducted at all operations during 2007 and project planning for
Medical surveillance examinations in 2009
the implementation of a hearing protection programme is under
way Major focus areas during the year under review have included
a programme to reduce the sound level of rock drills and fans and
reinforcing procedures regarding the use of hearing protection
devices which are provided to all employees exposed to high levels
of noise Another 20 of all rock drills at Blyvoor were muffled to
bring the percentage for 2009 to 95 This procedure reduces
sound levels by approximately 10dBA In addition 90 of all fan
installations at this mine have been silenced The installation of
muffles was planned to start at ERPM in October 2008 ndash the month
in which the operation was placed on care and maintenance
The fact that ERPM has been placed on care and maintenance
means that no water is being used underground to allay dust This
means that when employees are required to go underground they
are issued with respirators The installation of foggers to reduce
dust at the tips at Blyvoor is being investigated
Managing health care Occupational health care at DRDGOLD which forms part of the
companyrsquos broader health care programme makes provision for
initial periodic and exit medical examinations Employees are
screened for heat tolerance NIHL and TB The treatment for TB is in
line with that prescribed by the World Health Organisation
(WHO) Statutory records are kept and compensation claims
submitted to the Medical Bureau for Occupational Diseases
(MBOD)
At Blyvoor health care has been outsourced to Healthshare Health
Solutions since 2005 Primary health care is available 24 hours a
day at two on-mine clinics Secondary and tertiary health care is
available to Blyvoor employees at the Gold Fields West Hospital in
Carletonville The mine subsidises the cost of this service
Total 1 688 7 999
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 19
19 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 20
ERPM
DRDGOLD Sustainable Development Report 2009 20
Employees on ART (Blyvoor) referrals for ART (ERPM)
Blyvoor
64 91
169 102 - 40
VCT attendance 2 85
Safety and health (continued)
All employees at Crown are covered by a medical aid scheme An
occupational health clinic is staffed by a full-time occupational
health practitioner and a part-time doctor
Health care at ERPM was outsourced to Life Healthcare until the
end of February 2009 when the operation was placed on care and
maintenance Since March health care has been provided at an onshy
site clinic where there is a full-time sister and a part-time doctor
on duty
HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the
well-being of employees the company and the industry The
average prevalence level in the mining industry in South Africa
is reported to be approximately 30
While acknowledging that there is no simple way to counter this
threat DRDGOLDrsquos strategy includes the following
actively driving awareness programmes at each operation
involving all stakeholders in a multi-faceted approach to
educate employees and their dependants to prevent the
incidence of HIV amp AIDS
the development of wellness programmes for employees
providing confidential informed voluntary counselling and
testing (VCT)
providing appropriate medical care to employees suffering
from HIV amp AIDS and
giving terminally ill employees the opportunity to live the rest
of their lives with dignity
Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based
on preventing people from getting the disease and on providing
treatment when they are found to HIV-positive
At Blyvoor a joint managementunion initiative known as Project
Tsietsi was established in 2008 and conducts awareness campaigns
relating to HIV amp AIDS including the holding of education sessions
and the use of posters The minersquos wellness programme encourages
HIV amp AIDS statistics
Aspect 2008 2009 2008 2009
a healthy lifestyle and a health awareness day was held during
the year
Crown is a participant in a three-year HIV awareness campaign
which is run by accredited education and training service provider
Redpeg (a company owned and managed by black women) in
collaboration with the government
Wellness days were held every quarter at ERPM with HIV amp AIDS
and TB alternating as the topics
Condoms are dispensed by the on-mine clinics at Blyvoor and the
medical station at Crown where dispensers are placed in the
change houses At ERPM every shaft recreation place and all
change houses had condom dispensers and condoms were
distributed on wellness days
Blyvoor employees are encouraged to go for VCT at the clinics When
employees at Crown request assistance VCT is recommended
Medication for opportunistic infections is available at the Blyvoor
clinics and patients are referred to a private practitioner in Carletonville
for anti-retroviral therapy (ART) when this is medically indicated
The total cost of Blyvoorrsquos HIV amp AIDS programme is between
R800 and R1 000 per person per month
As Crown employees do not live on site and are covered by a
medical aid scheme they attend private or government
clinicshospitals and the operation does not keep their medical
records It is therefore not possible to give an estimate regarding
the number of employees on ART or the costs associated with this
Crown and corporate office support the AIDS Week
Bannerthon when the business community in South Africa shows
its solidarity with HIV amp AIDS sufferers and helps to raise money
for Aids orphans
ERPM donated the premises for the Khotso-Caritas Care Home
which offers a wide range of treatment to employees and people
from the wider Ekurhuleni area This includes VCT a wellness
programme and free ART See the Community section of this report
for further information about this facility
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 21
Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is
under way and is expected to be finalised by the end of September 2009
As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix
(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals
during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical
care they require and have significantly reduced travelling expensesrdquo Madelein explained
Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards
the prevention of unnecessary hospitalisation
The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme
In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of
awareness on the mine and increased the number of employees receiving VCT
Other health services available on site include audiology lung function tests TB X-rays and the admission of directly
observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma
counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital
Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and
safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo
Improving occupational health care at Blyvoor
Together with service provider Healthshare which manages the operationrsquos primary and
secondary health care Blyvoor is in the process of improving the standard of health care
given to employees
DRDGOLD Sustainable Development Report 2009 21
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 22
Employment and human rights
DRDGOLD Sustainable Development Report 2009 22
DRDGOLD has a group policy regarding recruitment selection engagement and separation
practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining
industry and the policy seeks to recruit and select the best talent available to fill vacancies and
to ensure that the engagement of successful applicants and their induction as new employees
takes place smoothly Another objective is that the policy serves as a vehicle for identifying and
analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo
factors that may attract such people away from the company When a vacancy occurs the
company looks among existing employees to fill the position and only looks outside if there is no
suitable internal candidate
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 23
2008
DRDGOLD Sustainable Development Report 2009 23
Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total
Crown
2009
4 005 596 4 601
510 680 1 190
185 61 246
139 509 648
30 0 30
4 869 1 846 6 715
492 687 1 179
Blyvoor 3 835 676 4 511
ERPM 1 892 8 1 900
ErgoGold NA NA NA
Corporate and regional offices 37 0 37
Total 6 256 1 371 7 627
Union membership as of workforce by operation
Each operation has a human resources manager with specialist
human resources and training personnel to handle the day-to-day
management of employee-related issues This manager reports to
mine management and to the Executive Officer Human Resources
who has overall responsibility for human resources industrial
relations and labour practices across the group
The operations have employee forums that engage with
management on different issues At Crown for example there are
four forums education health and safety future and employment
equity and transformation
Talent is fostered through learnerships internships and tertiary
education programmes In particular all the operations identify
historically disadvantaged South Africans (HDSAs) for skills
development and advancement In the year under review Blyvoor had
41 Crown 15 and ERPM 12 HDSAs in their respective talent pools
At the end of 2009 DRDGOLD employed 6 715 people of whom
1 846 were contractors (275 of the workforce) The turnover
rates for the three operations were Blyvoor 084 Crown 35
and ERPM 87 The reason for the high percentage at ERPM was
the placing of the underground operations on care and
maintenanceThis resulted in the retrenchment of 1 336 employees
while 116 were transferred to other DRDGOLD operations
Human rights South African legislation ndash in particular the Labour Relations Act the
Employment Equity Act aspects of the Mine Health and Safety Act
the Mineral and Petroleum Resources Development Act (MPDRA)
and the Mining Charter ndash lays down certain requirements in respect
of labour relations operating in the country These include such
human rights conventions as freedom of association and collective
bargaining In addition the countryrsquos constitution and its
subscription to various International Labour Organisation
declarations as well as other international regulations play a part in
setting parameters for employeremployee relations
DRDGOLDrsquos adherence to the legislation declarations and
regulations outlined above means that the company prohibits
forced compulsory and child labour and ensures that its
employment practices are fair
DRDGOLDrsquos board-approved Code of Ethics commits the company
to fair employment practices equal opportunity and employment
equity The code states that DRDGOLD respects and defends the
rights of all employees to a working environment free of
discrimination on the basis of attributes unrelated to job
performance for example race gender religious belief political
affiliation age or disability Company policy prohibits harassment
whether it occurs in the workplace or at other employee-related
events or activities
All employees have the right to freedom of association and to act out
this freedom within the bounds of the law and collective agreements
and provided that this does not impinge on the rights of others
Labour relations The two unions recognised by DRDGOLD are the National Union of
Mineworkers (NUM) and UASA ndash the Union In total 84 of
DRDGOLD employees are unionised 65 belonging to NUM and 19
to UASA The company has recognition agreements with both unions
Wages and conditions of employment are negotiated on a biennial
basis for each operation Monthly managementlabour meetings
are held at each operation where unions are informed about
production results and employee concerns are addressed
When operational changes occur DRDGOLD observes the 60-day
consultation process specified in Section 189A of the Labour
Relations Act and this was the case with the retrenchments that
took place at ERPM in January 2009 There was no industrial action
associated with this process The retrenchment packages were
agreed with the unions and the company worked closely with the
unions and the Department of Labour to identify and implement
re-skilling programmes Where possible it engaged with other
Blyvoor 65 11
Crown 70 10
ERPM 60 37
Total
76
80
97
Operation NUM UASA
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 24
2008
DRDGOLD Sustainable Development Report 2009 24
Employment and human rights (continued)
HDSAs in management Operationentity Number in of total Number in of total
management management management management
Crown
2009
14 25
10 33
1 8
7 32
19 40
Blyvoor 21 18
ERPM 13 27
Corporate and regional offices 6 22
Wom
en in
min
ing
as
perc
enta
ge o
f w
orkf
orce
mining companies which expressed an interest in recruiting
employees and established lines of communication between these
companies and the unions
Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce
There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year
Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women
Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool
Training and development DRDGOLD is committed to training and developing its employees
at all levels across the group In 2009 a total of R45 million
40
35
30
25
20
15
10
5
0 Blyvoor Crown ERPM Corporate and
regional offices 2008 2009
(2008 R55 million) was spent by the company on these aspects
During 2009 employees at Blyvoor in categories 4 to 8 spent an
average of 13 days in training four days in refresher training and
three days in first aid training For those in category 9 and above
an average of four days were spent in refresher training and three
days in first aid training
Adult Basic Education and Training (ABET) is available at all
operations At Blyvoor ABET is available on a part-time basis to
employees as well as to people from the surrounding community
The company employs a full-time co-ordinator and four part-time
educators During 2009 140 learners enrolled at the ABET centre
60 of whom wrote an examination and were certified as competent
in Levels 1 2 3 and 4
Full-time ABET classes (from Level 1 to Level 4) were offered on the
Crown premises to around 20 employees a year until 2008 A skills
audit is scheduled in order to determine future requirements and
classes will start again in January 2010 for identified employees
These will be conducted by the Ekurhuleni Business Development
Academy (EBDA) which DRDGOLD has established in partnership
with its Ergo joint venture partner Mintails
Prior to January 2009 there were four trained ABET facilitators at
ERPM and 55 employees were taking ABET classes on a full-time
basis at Ergorsquos training facilities The entire ABET curriculum ndash
equivalent to nine years of schooling ndash was offered The cost of
ABET at this operation in calendar 2008 was R250 000
Learnerships provide employees with the opportunity to improve their
skills through a combination of studying and practical on-the-job
trainingAt Crown 16 employees 15 of whom are HDSAs are learning
trades eight as fitters four as electricians one as a rigger and three
in platingwelding Three streams are being run six employees will
be eligible to take trade tests in November 2009 six in 2010 and
four in the second quarter of 2012 There are currently 12 employees
on learnerships at Blyvoor ndash some learning to be boilermakers and
electricians and others learning mining-related skills
Currently Blyvoor has two HDSA students on its bursary
programme both of whom are studying mining engineering at a
tertiary institution The cost of this in 2009 was R72 000 No
bursaries or scholarships were awarded by Crown or ERPM during
the year under review
(See case study Junior Leadership Programme empowers employees
and saves company money on page 26)
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 25
DRDGOLD Sustainable Development Report 2009 25
Employee benefits Benefits at Blyvoor include free medical care (for category 4 to
8 employees) medical aid for other employees maternity and
family responsibility leave pension and provident funds
accommodation and study assistance
At Crown benefits include medical aid maternity leave a pension
fund profit share and study assistance
Benefits at ERPM were free medical care (for category 4 to
8 employees) a monthly medical allowance for other employees a
skills retention allowance and study assistance
Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation
provided by the mine The breakdown is as follows
764 in houses
396 in family units and
1 660 in single accommodation in hostels
The remainder of the workforce 1 181 employees live in their
own accommodation which they may rent or own
There has been a steady decline in the number of employees
residing in the two on-site hostels from 1 995 in 2007 to 1 797 in
2008 and to 1 660 (47 of the workforce) in 2009 In the
meantime the mine has continued with its project to convert
hostel rooms into family units To date 292 units have been
completed Blyvoor is also converting part of a hostel into
accommodation for female mineworkers who are single The
cost of these programmes to date is R14 million In addition
15 employees per month are being allocated company
accommodation which was formerly used for rental purposes
Daily meals are provided to all Blyvoor hostel residents
while underground and plant employees are given a meal pack on
their way to their workplace The annual cost to the company is
some R193 million a year
There is no on-site accommodation at Crown or ErgoGold and
employees are not provided with meals Crown employees receive
a housing allowance of R400 a month The company donated the
land part of the now closed Durban Roodepoort Deep Mine on
which a new suburb of Soweto ndash Bramfischerville ndash was built
Before ERPM was placed on care and maintenance 5 of
employees resided in housing provided by the mine Home
ownership was encouraged through a low-cost housing initiative
The mine made 62 hectares of its land near Boksburg available to
the Ekurhuleni Municipality for the construction of housing units
for employees and community members
Some 11 of ERPM employees lived in an on-site hostel The
majority of category 4 to 8 employees opted for the living out
allowance All underground employees were provided with meals at
a cost of around R60 000 a year
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 26
DRDGOLD Sustainable Development Report 2009 26
Employment and human rights (continued)
Junior Leadership Programme empowers
employees and saves company money
DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive
Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an
effort to teach those attending the course about finance management and decisionshy
making and lastly to try to create a sustainable project that will help chosen
candidates grow in their current positionsrdquo
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 27
Union membership as of workforce by
operation
Operation NUM UASA Total
Blyvoor 65 11 76
Crown 70 10 80
ERPM 60 37 97
DRDGOLD Sustainable Development Report 2009 27
Comprising both theoretical and practical study
candidates were required to submit an impact project at
the end of the course Of the 13 people who completed
the course 11 submitted impact projects ldquoThe
outstanding thing about a course such as this is that the
impact projects presented represent a total saving of
around R14 million per month for DRDGOLD When you
consider that the cost of the training amounted to
R400 000 in total this is a significant saving for the
companyrdquo training consultant Piet Pistorius said
Candidates had to present their impact projects to senior
management and to the main lecturers involved with the
JLP after which the most outstanding projects were
announced at a function on 24 June 2009 Piet explained
ldquoWinners were judged on a number of criteria such as
the quality of their presentation the financial impact of
their projects their overall performance throughout the
course and the incorporation of project key performance
areas (KPAs)rdquo
Some examples of outstanding projects included
cost benefit analysis of hiring versus purchasing TLBs
at Ergo
implementation of geological drilling schedules to
reduce costs associated with ad hoc drilling
interrogation of systems and controls to improve net
cash flow in respect of living out allowances paid to
contractors and VAT at ERPM and
maintaining a constant oxygen supply into the elution
process to dramatically improve extraction efficiencies
Leonard Nxumalo a geologist at Blyvoor received the
best student award no mean feat for someone working
full-time His impact project looked at reducing the unit
costs per metre drilled in the diamond drilling programme
It has revolutionised the manner in which diamond drilling
is scheduled and conducted and to date has saved the
company in excess of R150 000
ldquoThe entire course was most valuablerdquo Leonard said ldquobut
my best module was personal productivity ndash it made me
become more effective as an individual a more effective
team member and most importantly an effective leader It
also improved my personal life in a very amazing wayrdquo
Tessa Wilkins an assistant financial accountant at ERPM
received the award for the best impact project Her project
entailed detailed scrutiny of current living out allowances
paid by the mine to contractors who provide hostel
accommodation on behalf of the mine Allowances were
verified by the payroll department after physical counts
were conducted to more accurately reflect the correct
amounts owed to the contractor and the projectrsquos return
on investment which was around R100 000 over a threeshy
month period is escalating monthly
Tessa found the course beneficial ldquoIt gave me the ability
to deal more effectively with change to work more
assertively to unite a diverse team to manage my time
more effectively and to delegate and prioritise After the
course I have become more focused and understand that
goal-setting is crucial to successrdquo she said
Andrew concluded ldquoThis all-encompassing programme
has been well received by the students and the company
Along the way we have learnt a great deal about
managing learnersrsquo expectations and how best to apply
the selection criteria at the outset so as to minimise the
number of drop-outs We look forward to welcoming the
next set of learners and hope that they can implement as
efficient and sustainable projects as their predecessorsrdquo
The course comprised five modules
Module 1 Personal productivity
Module 2 Leadership
Module 3 Fundamentals of management
Module 4 Fundamental principles of economics and business finance
Module 5 Introduction to project management
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 28
Community development
DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that
is based on resources that are locally available
DRDGOLD Sustainable Development Report 2009 28
is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people
Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities
With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour
The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment
A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 29
rdquo
DRDGOLD Sustainable Development Report 2009 29
Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009
The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa
Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)
EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people
Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations
During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM
Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing
Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the
surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected
on page 30)
Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community
Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years
A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor
planting for the future on page 32)
During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots
Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)
Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses
The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period
of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles
Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas
To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts
When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 30
Community development (continued)
DRDGOLD Sustainable Development Report 2009 30
Supporting Ekurhulenirsquos HIV amp AIDS affected
DRDGOLD has supported the Khotso-Caritas Hospice which provides care and
assistance to employees and members of the community infected and affected by
HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs
three programmes which include palliative care to terminally ill patients anti-retroviral
treatment (ART) and a childrenrsquos day care centre which provides care to 66 children
between the ages of three and six from the surrounding communities
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 31
DRDGOLD Sustainable Development Report 2009 31
The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by
donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that
the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of
objectivesrdquo he said accommodating 18 patients at any given time and has
been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every
Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges
admitted and treated which came to an average of grow each year as well ldquoHaving worked in public
31 patients a month hospitals and experienced the lack of resources I now
Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current
funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better
Dr Ncholo training opportunities for medical staff
The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate
a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has
and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are
collected from their homes every morning and Carnival City Complex in Brakpan in this venture
returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate
from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas
treatment at the centre and their well-being is and will run until the end of the year During
monitored on a regular basis this time the members of the group are receiving a
stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs
period the 10 most promising candidates will be 36 people responsible for tending to the needs of
sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two
hydroponic vegetable growing part-time doctors a nursing staff of 14 four
counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties
project on the road towards achieving selfshy
sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a
board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy
activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers
Resources Manager at ERPM and Ergo was appointed or directly to the public
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 32
DRDGOLD Sustainable Development Report 2009 32
Community development (continued)
The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities
Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the
project until it has reached a level of self-sustainability
Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine
hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes
cucumbers and sweet peppers
Merafong councillors have been actively involved in the process of developing this project and will continue to visit the
site on a monthly basis to promote community participation
Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are
currently employed They have all received theoretical and practical training in hydroponics and plant production at the
Dicla agricultural training centre which is close to Mogale City (Krugersdorp)
ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation
systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics
context during the different growing periods of the vegetablesldquo he said
Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has
been fully established we will embark on open field cabbage and spinach farmingrdquo he explained
The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then
be sold to members of the surrounding communities and local supermarkets
Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination
stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo
Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local
community DRDGOLD launched the Morogo hydroponic vegetable growing project at
Blyvoor during 2009
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 33
33 DRDGOLD Sustainable Development Report 2009
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 34
Environmental performance
DRDGOLD Sustainable Development Report 2009 34
Environmental management
The environmental function at DRDGOLD is managed in line with the environmental legislation
and regulations of in particular the Department of Mineral Resources (DMR) the Department of
Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on
opposite page) Consultations are also held with the regulatory authorities
As is required by legislation Environmental Management Plans (EMPs) are in place at all of the
grouprsquos active operations These plans have been developed by the company and submitted to the
DMR and address the impacts and potential impacts on the environment by the company as well
the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to
assess compliance with the EMP and submitted to the DMR The most recent audit was conducted
in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic
document and informed by any changes in legislation and changes in scope Any new projects are
subject to Environmental Impact Assessments (EIAs) which include a high degree of
public participation
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 35
DRDGOLD Sustainable Development Report 2009 35
Revised EMPs for all operations were submitted to the DMR for
Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is
awaited All the operations have applied for integrated water use
licences and are awaiting approval from the authorities In the interim
water is managed in terms of previously approved water permits
No fines were imposed on any of the grouprsquos operations during
2009 in respect of environmental management
DRDGOLD has a Group Environmental Manager who takes overall
responsibility for this discipline across the group and monitors
performance against the EMPs All key environmental staff and
contractors report into this function although the ultimate
responsibility for environmental practices at an operational level
resides with operational management
Crown and Blyvoor have environmental managers and radiation
protection officers (RPOs) on site ERPM and the discontinued
operations of Durban Roodepoort Deep (DRD) and West Wits make
use of a contractor Malepa Holdings to carry out the RPO function
Malepa Holdings also undertakes radiation protection specialist
duties at all DRDGOLD operations
Another contractor Fraser Alexander (Technical Division) performs
the annual closure liability and the EMP performance assessments
Various contractors are used for the updating of EMPs the carrying
out of EIAs and for rehabilitation projects
Malepa Holdings undertakes the annual Government Notice (GN)
704 (guidelines for the use of water in mining) audits and Annergarn
Environmental Research a leading dust monitoring agency in
southern Africa performs dust sampling and analysis at
all operations
Environmental incidents Environmental incidents are monitored and reported to the
relevant authorities as is required In assessing environmental
incidents DRDGOLD follows
the categories set out in the NNR Certificate of Registration
Chapter 23 of the Mine Health and Safety Act which sets out
Regulations for the Reporting of Accidents and Dangerous
Occurrences and
GN 704 Regulation 2 with respect to any possible effect on a
watercourse
At Blyvoor 11 spills occurred during the year as a result of burst
reclamation pipes from slimes dams numbers 4 and 5 The spills
were all on the mine property and did not affect any watercourse
The volume of these spills has been estimated at approximately
8 000 tonnes and they are in the process of being cleaned up The
existing steel reclamation pipelines have been replaced with high
density polyethylene pipes
Relevant legislation Constitution of the Republic of South Africa 1996
Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA
regulations
National Environment Management Act 1998 (NEMA) and amendments
Regulations in terms of Chapter 5 of NEMA
National Environmental Management Waste Act 2008
National Water Act 1998 (NWA) and regulations
National Nuclear Regulator Act 1999
National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices
National Environmental Management Air Quality Act 2004
Hazardous Substances Act 1973
Mine Health and Safety Act 1996 (MHSA)
Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001
National Environmental Management Biodiversity Act 2004
National Environmental Management Protected Areas Act 2003 and Protected Areas
Amendment Act 2004
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 36
DRDGOLD Sustainable Development Report 2009 36
Environmental performance (continued)
Only one reportable incident occurred in the group during 2009
This happened at Crown at the end of June 2009 where spillage
control dams were breached at the Crown plant and around
600 tonnes of slime flowed into the Russell stream affecting an
area about 30 metres in length The cause of the problem was a
power failure on the part of state utility Eskom which resulted in all
the pumps ceasing to operate The area is in the process of being
cleaned up after which a close-out report will be completed and
sent to the authorities The capacity of the control dams is being
increased so that there is less danger of a spillage should a similar
episode occur in the future
Major environmental risks The major environmental risks and concerns for DRDGOLD are those
of air pollution (dust) water management (including the sourcing of
water and polluted discharges) resource utilisation (and in particular
the use of cyanide and timber) energy usage and land management
and closure Blyvoor has an added risk of sinkhole formation because
of dewatered dolomites underlying its significant landholdings
Air pollution As DRDGOLDrsquos surface reserves and resources are contained in
tailings dams many of them situated in built-up areas it follows
that dust is an issue that the company deals with on a daily basis
It is addressed through ongoing environmental management and
remediation measures such as vegetation and ridge ploughing
Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos
operations (including closed mines) against the South African
National Standards (SANS) which are set out in the table below
Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances
Target 300
Action residential 600 Three within any year no sequential months
Action industrial 1 200 Three within any year no sequential months
Alert threshold 2 400 None First exceedance requires remediation and compulsory
report to authorities
DRDGOLDrsquos Environmental Policy
DRDGOLD is committed to the responsible management of the environment in which it operates adopting and
implementing environmental best practice as outlined in the National Environmental Management Act 1998
Recognising that the environment is held in trust for the people DRDGOLD is committed to
integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our
activities on the receiving environment through internal risk assessments and environmental impact assessments
complying with relevant environmental legislation as a minimum and adopting and applying the best practicable
environmental option (BPEO) on current activities as well as prospective projects
evaluating through a process of monitoring auditing and reviewing by management the success of the management and
mitigation measures applied and
ensuring that environmental risks and potential emergencies are identified and managed through effective controls and
procedures as identified in the applicable Environmental Management Programmes
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 37
2008
DRDGOLD Sustainable Development Report 2009 37
Results from monitoring points
Operation Points Number of Exceedances as Exceedances as
monitored exceedences percentage of total percentage of total
Crown 11
ErgoGold
2009 2009 2009
924 104 11
300 18 6
288 21 7
60 ndash ndash
312 77 25
5
ERPM 7
Blyvoor ndash
DRD 10
Operation Water Potable water
extracted (ML) extracted (ML) used (ML) used (ML)
2009 2008 2009 2008
Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598
The results from the monitoring points are set out in the table above
Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg
Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed
A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings
Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures
DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam
Water withdrawn from source
because it was earmarked for future mining by Mintails SA All
surface slimes dams and sand and rock dumps have been sold to this
company which is now responsible for controlling and managing
these sites including the sampling and monitoring of dust
Water management Water is a scarce resource and DRDGOLD endeavours to
minimise the amount of water it uses In 2009 total water
usage by DRDGOLD amounted to 12 553 million litres (ML) or
126 million cubic metres (m3) Water is extracted from
underground at Blyvoor and this was also the case at ERPM until
operations were suspended As discussed below Blyvoor will be
setting up a plant to treat some of this water to potable standards
for use on the mine which will mean a substantial drop in the
consumption of potable water at this operation The source of
potable water at DRDGOLDrsquos operations is the Rand Water Board
at Blyvoor this is used for the two villages on site and for about
30 of the mining processes ndash for the rest extracted water is used
at ERPM it was used for cooling purposes underground and it is
used for domestic purposes and at Crown where there is no other
source of water it is used in all the mining processes
Water quality and discharge volumes are monitored regularly
Details of the water usage by operation for 2009 are set out in the
table below
(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has
been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 38
DRDGOLD Sustainable Development Report 2009 38
Environmental performance (continued)
Water discharged 2009 Operation Volume EC Suspended Sulphates
discharged (ML) Destination pH mSm solids mgL mgL
Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630
ERPM 4 145 Elseberg Spruit 8 NA 30 2 800
Wonderfontein Spruit
Blyvoor continues to discharge between 8 ML and 10ML per day of
fissure water from underground into the Wonderfontein Spruit
(stream) Samples of this water are taken every week and the
results sent to the Tlokwe Municipality and the Department of
Water and Environmental Affairs The water has been found to
be of relatively good quality (see table above)
A contract has been signed with Maano Water to establish a water
treatment plant at Blyvoor to treat some of this water to potable
standards for use on the mine This will reduce the volume of
external potable water used by the mine by approximately 175ML
per month as well as the amount of water being discharged into
the lsquospruitrsquo The plant will be commissioned before the end of
calendar 2009
Blyvoor is also a member of the Mining Interest Group (MIG) which
together with the regulators is looking at pollution in the sediments
of the lsquospruitrsquo from historical mining activities and determining what
action if any should be undertaken to clean this rivulet
The regulators have produced a report called the Remediation
Action Plan in which certain areas along this watercourse have been
identified for further investigation Implementation task teams will
now be established to carry out these investigations
The water discharged into the environment by the Blyvoor and
ERPM operations during 2009 is set out in the table above
Western Basin
The Western Basin of the Witwatersrand goldfields has been filling
with water after mining operations stopped in the early 2000s and
this water started to decant on surface in 2002
In response to this a Section 21 company the Western Basin
Environmental Corporation (WBEC) was formed by the mines
involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)
and West Wits (DRDGOLD) ndash to investigate a sustainable solution
to this water which is polluted and needs to be treated A
management agreement was signed with the Western Utilities
Corporation (WUC) a wholly owned subsidiary of AIM-listed
Watermark Global plc to find a solutionVarious treatment options
were then investigated and pilot plants operated to determine the
best method of cleaning this water in a self-sustainable way
Feasibility studies have indicated that treating the Western Basin
water which amounts to 15ML per day would not be sustainable
The Wits Basin four compartments Centurion
FAR WEST BASIN
WEST RAND BASIN
Hillshaven
Randfontein
Oberholzer Carletonville
Doornfontein Lenasia
Grasmere
Roodepoort
Krugersdorp
Magaliesburg
Soweto
Sandton
Johannesburg
Randburg
Benoni
Germiston
Alberton
Halfway House
Kempton Park
Heidelberg
Bapsfontein
Putfontein
Brakpan
Nigel
Vosterskroon
Kwa-Thema
CENTRAL RAND BASIN EAST RAND BASIN
The Village
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 39
DRDGOLD Sustainable Development Report 2009 39
Western Basin
Existing infrastructure New infrastructure
East Chamdor Shaft
ERPM South West Vertical Shaft
DRD4 Shaft
Grootvlei
No 3
Central Basin
WUCrsquos practical and sustainable solution
Eastern Basin
and that a minimum quantity of 75ML per day would be required
to achieve the economies of scale required
However by combining this water with that of the Central (60ML
per day) and Eastern (75ML per day) basins of the Witwatersrand
goldfields which have similar water problems an economically
viable water treatment plant could be established Studies have
indicated the best site for the plant is the currently disused High
Density Separation (HDS) water treatment plant at ERPM Funding
for the plant will come from various interested investors
The WUC water plant proposal has been submitted to the
various regulators for approval Indications are that the plant could
be constructed in 12 months after the necessary approvals
are received
As an interim measure existing water treatment plants at Harmony
and Mogale Gold treat the decant water and then discharge it into
the Tweelopies Spruit However these plants can only partially treat
the water by correcting the degree of acidity or alkalinity (pH) and
removing heavy metals The partially treated water still has high
sulphate levels of around 2 600 milligrams per litre (mgL)
A pipeline connecting the Western and Central basins has
been proposed to stop the discharge of any polluted water until
the WUC plant is commissioned This proposal is awaiting
regulatory approval
Central Basin
ERPM which is situated in the area of the Central Basin stopped
pumping water from underground on 6 October 2008 The
underground mining area has been isolated from this water by
means of plugs and a water barrier pillar
The water in the Central Basin is currently rising at a rate of
approximately 07 metres (m) per day and at the time of writing
was 780m below surface If the Western Basin water is allowed to
be pumped into the Central Basin the rate would increase to
approximately 09m per day
In order to protect the ground water this polluted underground
water cannot be allowed to rise higher than 150m below surface
ERPM Central Rand Gold (CRG) and West Wits Mining have formed
a Section 21 company the Central Basin Environmental
Corporation (CBEC) to investigate methods of dealing with this
water The treatment plant proposed by WUC is the only
sustainable long-term solution to treating this water
Various options to pump the water to surface are being considered
One option which CRG is looking at is that of pumping from below the
150m mark to protect its resources The installation of submersible
pumps at ERPMrsquos South West Vertical Shaft from surface to 150m
below surface is another option The cost of this installation is
approximately R66 million of which according to an apportionment
model undertaken by ground engineering and environmental services
consultants Golder and Associates ERPM may have to contribute 17
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 40
Product
DRDGOLD Sustainable Development Report 2009 40
Environmental performance (continued)
WUCrsquos recommended retreatment option
CSIRrsquos Alkali-Barium-Calcium process
Acid mine drainage
Calcium Barium hydroxide carbonate
Neutralisation
stage
Recycled
Sulphate
removal
Recycled
Metal hydroxide
sludge
Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products
Thermal by-
product
recovery
Elemental sulphur
for sale
Grey water
for industrial use
Filtration
Disinfection
Quality control
Drinking water
to Rand Water
After the commissioning of the pumping infrastructure WUC
would take over all operating costs This forms part of the closure
strategy for these mines
Resource utilisation DRDGOLD is committed to using natural resources carefully and to
reducing waste wherever possible
Materials usage in 2009
Cyanide
Hydrochloric acid
Caustic soda
Lime
Grinding mediasteel
Carbon
Poly fuelwaxy fuel
Rock processed (underground and surface)
Slime processed
Sand processed
Tonnes
4 380
1 707
1 694
50 854
5 652
730
582
1 430 000
12 918 606
1 474 192
DRDGOLD uses a substantial amount of cyanide in the gold
recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash
and recognises that its use poses a significant risk Energy and
chemicals company Sasol supplies cyanide to DRDGOLDrsquos
operations The company follows Sasolrsquos special procedures for the
handling of cyanide once it has taken delivery of a consignment
The correct handling of cyanide forms part the safety training for
employees working in the gold plant
Energy usage The group has called in a number of companies to look at ways in
which energy can be saved or used more efficiently at its operations
To save on the consumption of direct energy Blyvoor is moving
from using diesel locomotives to more energy efficient battery
operated locomotives
DRDGOLD purchases electricity from Eskom Several projects have
been implemented with respect to reducing the consumption of
indirect energy These include the following
a control system that switches geysers off during peak times at
all houses in the mine villages at Blyvoor
changing to energy efficient light bulbs at Blyvoor
buying new energy efficient motors instead of rewinding
motors under 22 kilowatts (kW) and
upgrading of hot water calorifiers at ERPMrsquos change houses
Projects that are currently being undertaken include
installing prepaid electricity meters in all houses at Blyvoor
installing prepaid meters in the DRD village and
investigating the use of compressed air generation at the
operations Currently this is one of the biggest consumers of
electricity and the investigation will determine whether savings
can be effected by changing to hydraulics for example
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 300 PM Page 41
DRDGOLD Sustainable Development Report 2009 41
Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres
claimed by
employees
Blyvoor 1 621 156 73 124 269 816 399 888 327 066
Crown 1 458 176 ndash ndash ndash 253 743
ERPM 40 111 ndash ndash ndash 64 509
ErgoGold 21 023 ndash ndash ndash 23 642
DRD 183 258 ndash ndash ndash ndash
Corporate office ndash ndash ndash ndash 260 109
Total 3 323 724 73 124 269 816 399 888 929 069
The only mines pumping water from underground during the year
under review were Blyvoor and ERPM with pumping ceasing at the
latter operation on 6 October 2008 Blyvoor made adjustments to
its schedule in order to reduce the power used during peak times by
9 megawatts (MW)
Indirect energy consumption 2009 Operation
Blyvoor
Crown
ERPM
ErgoGold
DRD
Total
Electricity consumption (MWh)
421 631
205 416
225 152
33 521
7 898
893 618
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
NO
x em
issi
ons
Indi
rect
CO
2 em
issi
ons
Dire
ct C
O2
emis
sion
s20
09
2009
20
09
Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its
operations because of regulatory compliance and the costs Blyvoor
associated with increased taxes usage caps and tariff increases Crown
While South Africa has not been a signatory to the Kyoto Protocol ERPM
and does not have any specific legislation in place relating to ErgoGold
greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate
policies (and potentially legislation) will be guided by ongoing DRD
international climate change talks and that post-2012 regulations
will be imposed
DRDGOLD has considered risks to the company posed by climate
and those to local communities relating to
water scarcity and rising water tariffs
limited availability of electricity and rising tariffs
floods and increasing precipitation (which could have an
impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold
Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to
scope 1 (direct) and scope 2 (indirect) emissions
Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 301 PM Page 42
Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD
DRDGOLD Sustainable Development Report 2009 42
Environmental performance (continued)
Summary table of emissions 2009 Total
10 110
895 928
862
906 901
3 506
6 503
0
49
0
188
Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468
Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478
Travel emissions tonnes 739 54 14 0 56 ndash(1)
Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945
NOx emissions(2) tonnes 1 889 916 505 149 0 47
SOx emissions(2) tonnes 3 527 1 621 994 291 0 69
SO2 emissions tonnes 0 0 0 0 0 0
Carbon monoxide emissions tonnes 24 22 1 0 0 3
Methane emissions tonnes 0 0 0 0 0 0
Particulate emissions(2) tonnes 101 50 26 8 0 3
SOx
emis
sion
s20
09
(1) No data
(2) Include some Eskom emissions which would count as indirect emissions
Blyvoor
Crown
ERPM
ErgoGold
Corporate
DRD
excluding travel kilometres claimed by employees By far the
greatest contributor to this is the diesel used by the operations
Indirect CO2 refers to emissions generated in the production of the
electricity that DRDGOLD consumes DRDGOLD sources its
electricity from Eskom and this is generated almost entirely from
fossil fuels (coal)
Emissions of nitrous oxide (NOx) primarily reflect direct and
indirect emissions from diesel and electricity
Sulphur dioxide (SOx) emissions primarily reflect direct and indirect
emissions from diesel and electricity
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 301 PM Page 43
DRDGOLD Sustainable Development Report 2009 43
Land management closure
and biodiversity management
Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares
respectively The land disturbed by mining activities is 4 023
hectares in the case of Blyvoor and 688 hectares in the case of
ERPM Crown has cleared 239 hectares of land while 206 hectares
have been cleared and developed or are in the process of being
developed
Crown cleared and handed 4L8 site back to the landowner Targets
for 2010 are to complete sites 3L17 and 3L19 and hand them
back to the landowners A total of 17 hectares of vegetation is
planned for the Crown Tailings Complex to control dust for the
2010 World Cup
ERPM continues with the rehabilitation of a redundant railway
embankment
Sinkholes
There were nine sinkholes which mostly occurred because of water
leaks recorded on Blyvoor property during the year all of which
have been filled and rehabilitated A structure is in place for the
reporting of water leaks and remedial action is taken immediately
Closure Closure plans are in place at all operations as required in terms of
the new EMPs The closure plan for DRD mine is currently being
updated and the rehabilitation of surface areas continues with the
goal of achieving closure
The closure liabilities associated with environmental issues for each
operation are assessed on an annual basis The amounts calculated
according to the official Department of Mineral Resources
guidelines as at June 2009 are set out in the table below
The operations have trust funds to meet the final closure liability
and DRDGOLD makes annual contributions to the environmental
trust fund in place at each operation (see table) All the operations
currently have shortfalls in terms of meeting their closure liabilities
DRDGOLD has proposed to the Department of Mineral Resources
that apart from Blyvoor these are covered through a financial
guarantee This proposal is under investigation In the case of
Blyvoor the proposal is that revenue from the No 2 Shaft rock
dump be ring-fenced This would result in this operationrsquos liabilities
being fully funded To date the DMR has not approved either of
these funding proposals
Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of
DRD West Wits or West Rand Consolidated enjoy statutory
protection or are considered to be areas of high biodiversity The
exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex
(see overleaf) There are certain instances where DRDGOLD applies
for exemption with respect to alien vegetation For example blue
gum trees are not indigenous but at some operations they are
found near tailings dams where they absorb polluted water and act
as a windbreak In such a case the company will prevent further
spreading but will not eradicate the trees as their benefits outweigh
any problems associated with their growth
Operation Closure liabilities Trust funds
R R R R
Blyvoor
122 175 819
67 204 644
66 629 210
41 236 056
45 961 402
343 207 131
61 283 274
47 350 753
30 519 947
18 577 649
20 813 000
17 905 241
135 166 590
26 906 119
Crown 104 993 605 37 159 250
ERPM 62 315 785 12 835 761
DRDRand Leases (1) 27 303 498 18 188 099
West WitsWest Rand Consolidated (1) 36 547 950 15 678 020
Total 292 444 112 110 767 249
(1) Discontinued operations
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 301 PM Page 44
Environmental performance (continued)
DRDGOLD Sustainable Development Report 2009 44
Daggafontein Tailings Complex
The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate
vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar
Convention on Wetlands of International Importance especially as Waterfowl Habitat
Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of
1 600 metres above mean sea level
Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings
Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in
Gauteng Province and covers an area of approximately 1 858 hectares The site is
situated approximately 3 kilometres east of the town of Springs on the East Rand The
towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south
It is important to note however that the activities associated with the Daggafontein
TSF do not take place within the protected area or in an area of high biodiversity value
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 301 PM Page 45
DRDGOLD Sustainable Development Report 2009 45
Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site
These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity
The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites
The anticipated significant impacts on diversity on the Ramsar site from the TSF are
water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity
Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above
rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem
Setaceum and Datura Stramnonium among others ndash
on the TSF and surrounding disturbed areas
Future of the Ramsar site An impact prediction has been completed to assess the
potential impact of the Daggafontein TSF Although there is
a definitive pollution plume associated with the TSF it is only
one of many factors affecting the Ramsar site and a detailed
assessment is required to accurately determine the
cumulative impact of all mining industrial and other
development activities in the area
Restoring habitats within the Ramsar site are confined at
present to the eradication of alien species The principal
exotic plant occurring within the wetland area the South
American Water Fern (Azolla Filiculoides) is not associated
with the TSF The emphasis should be on protecting the
existing habitats with the co-operation and collaboration of
all stakeholders Restoring the habitats to their original
pristine and undisturbed state will not be possible given the
cumulative effect of all activities in this urbanised and
industrialised area
However further degradation and deterioration of the
current existing biophysical environment within the site can
be addressed if all parties implement mitigation and
management actions to minimise their impact on this
protected area This will serve to minimise the overall
collective impact
A detailed assessment of the impact of the Daggafontein TSF
on the Blesbok Spruit Ramsar site was conducted by
AngloGold Ashanti The results of the assessment need to be
re-evaluated and a detailed bio-monitoring and a fauna and
flora assessment conducted to verify the validity and
applicability of previous results and assess the current status
of biodiversity in the area
Endangered species The Blesbok Spruit has no critically endangered or
endangered species from the Red List of Threatened Species
of the International Union for Conservation of Nature and
Natural Resources (IUCN) It has one species ndash the Grass Owl
(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in
the lsquonear threatenedprotected category as follows
Yellowbilled Stork (Mycteria Ibis)
Greater Flamingo (Phoenicopterus Ruber)
Lesser Flamingo (Phoenicopterus Minor)
Caspian Tern (Hydroprogne Caspia)
African Marsh Harrier (Circus Ranivorus)
Reed Buck (Redunca Arundinum) and
Spotted Necked Otter (Lutra Maculicollis)
Of least concern in terms of extinction are 59 species of
water birds and the Water Mongoose (Atilax Paludinosus)
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 301 PM Page 46
DRDGOLD Sustainable Development Report 2009 46
Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the
principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with
GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on
sustainability matters including seeking external assurance for the coming yearrsquos report
Reporting in line with GRI ndash C level of reporting Pages
G3 profile disclosures 1 Strategy and analysis
11 Statement by decision-maker 6-7
12 Description of key impacts risks and opportunities Throughout this report
2 Organisational profile
21 ndash 210 Information on the company 2-3
3 Report parameters
31 ndash 34 Report profile IFC
35 ndash 311 Report scope and boundary IFC
312 Content index 46-47
313 Assurance NR
4 Governance commitments and engagement
41 ndash 410 Governance 8-9
411 ndash 413 Commitments to external initiatives NR
414 ndash 417 Stakeholder engagement 28
G3 performance indicators Economic performance indicators
Management approach 4-5 10-13
EC1 Direct economic value generated and distributed 12
EC2 Financial implications and other risks and opportunities
for the organisationrsquos activities due to climate change 41
EC3 Coverage of the organisationrsquos defined benefit plan
obligations NR
EC4 Significant financial assistance received from government 12
EC6 Policy practices and proportion of spending on
locally-based suppliers at significant locations of operation 13
EC7 Procedures for local hiring and proportion of senior
management hired from local community at significant
locations of operation NR
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial in-kind or pro-bono engagement NR
Environmental performance indicators
Management approach 34-36
EN1 Materials used by weight or volume 40
EN2 Percentage of materials used that are recycled NR
EN3 Direct energy consumption by primary energy source 41
EN4 Indirect energy consumption by primary source 41
EN8 Total water withdrawal by source 37
EN11 Location and size of land owned leased managed in or
adjacent to protected areas and areas of high bio-diversity
value outside protected areas 43
EN12 Description of significant impacts of activities products
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas 44-45
EN16 Total direct and indirect greenhouse gas emissions
by weight 42
EN17 Other relevant indirect greenhouse gas emissions by weight 42
EN20 NOx SOx and other significant air emissions by type
and weight 42
EN21 Total water discharge by quality and destination 38
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 301 PM Page 47
DRDGOLD Sustainable Development Report 2009 47
Environmental performance indicators
EN27 Percentage of products sold and their packaging
materials that are reclaimed by category NA
EN28 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations 35-36
Labour practices and decent work
Management approach 22-23
LA1 Total workforce by employment type employment
contract and region 23
LA2 Total number and rate of employee turnover by
age group and region 23
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time 24-25
LA4 Percentage of employees covered by collective bargaining
agreements 23
LA5 Minimum notice periods regarding operational changes
including whether it is specified in collective agreements 23-24
LA5 Percentage of total workforce represented in formal
joint-management health and safety committees that
help monitor and advise on occupational health and
safety programmes 15
LA7 Rates of injury occupational diseases lost days and
absenteeism and number of work-related fatalities
by region 15-17
LA8 Education training counselling prevention and
risk-control programmes in place to assist workforce
members their families or community members
regarding serious disease 18-20
LA10 Average hours of training per year per employees
by employee category 24
LA13 Composition of governance bodies and breakdown of
employees per category according to gender age group
minority group membership and other indicators
of diversity 23-24
LA14 Rate of basic salary of men to women by employee
category 24
Human rights
Management approach 23
HR4 Total number of incidents of discrimination and
actions taken NR
Society
Management approach 28
SO1 Nature scope and effectiveness of any programmes and
practices that assess and manage the impacts of
operations on communities including entering operating
and exiting 29 and 32
SO4 Actions taken in response to incidents of corruption 8-9
SO5 Public policy positions and participation in public
policy development and lobbying 10
SO8 Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations NA
NR = Not reported
NA= Not applicable or relevant
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 301 PM Page 48
24
23-24
DRDGOLD Sustainable Development Report 2009 48
Compliance with the Mining Charter No Description Compliance Pages
1 Human resource development
Has the company offered every employee the opportunity to be functionally literate
and numerate by the year 2005 and are employees being trained Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Has the company implemented career paths for HDSA employees
including skills development plans
Has the company developed systems through which empowerment groups can
be mentored
2 Employment equity
Has the company published its employment equity plan and reported on its annual
progress in meeting that plan
Has the company established a plan to achieve a target for HDSA participation in
management of 40 within five years and is it implementing the plan
Has the company identified a talent pool and is this being fast tracked
Has the company established a plan to achieve the target for the participation of
women in mining of 10 within the five years and is it implementing the plan
3 Migrant labour
Has the company subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour
4 Mine community and rural development
Has the company co-operated in the formulation of integrated development plans and
is the company co-operating with government in the implementation of these plans
for communities where mining takes place and for major labour-sending areas
Has there been effort on the side of the company to engage the local mine community
and communities in major labour-sending areas
5 Housing and living conditions
For company provided housing has the mine in consultation with stakeholders
established measures for improving the standard of housing including the upgrading
of hostels conversion of hostels to family units and promoted home ownership
options for mine employees 25 and 29
Companies will be required to indicate what they have done to improve housing show
a plan to progress the issue over time and whether such a plan is being implemented 25 and 29
For company-provided nutrition has the mine established measures for
improving the nutrition of mine employees Companies will be required
to indicate what they have done to improve nutrition and show a plan to
progress the issue over time and whether such a plan is being implemented
6 Procurement
Has the mining company given HDSAs preferred supplier status
Has the mining company identified current levels of procurement from
HDSA companies in terms of capital goods consumables and services
Has the mining company indicated a commitment to progress of procurement from
HDSA companies over a three- to five-year time frame in terms of capital goods
consumables and services and to what extent has the commitment been implemented
7 Ownership and joint ventures
Has the mining company achieved HDSA participation in terms of ownership for
equity or attributable units of production of 15 in HDSA hands within five years
and 26 in 10 years
8 Beneficiation
Has the mining company identified its current level of beneficiation
Has the mining company established its baseline level of beneficiation and
indicated the extent that this will have to be grown in order to qualify for an offset
9 Reporting
Has the company reported on an annual basis its progress towards
achieving its commitments in its annual report
23-24
23-24
23-24
23
24
28-29
28-32
13
13
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 301 PM Page 49
DRDGOLD Sustainable Development Report 2009 49
Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
AMD Acid mine drainage
ART Anti-retroviral therapy
BEE Black economic empowerment
Blyvoor Blyvooruitzicht Gold Mining Company Limited
CIL Carbon-in-leach a gold recovery process
CIP Carbon-in-pulp a gold recovery process
COPA Community of Practice of Adoption
Crown Crown Gold Recoveries
dBA Decibels ndash unit of sound measurement
DMR Department of Mineral Resources
DRD Durban Roodepoort Deep (discontinued operation)
DSIFR Dressing Station Injury Frequency Rate
DWEA Department of Water and Environmental Affairs
EBDA Ekurhuleni Business Development Academy
EC Electrical conductivity
EIA Environmental Impact Assessment
EMP Environmental Management Programme
Ergo Ergo Mining (Pty) Limited
ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture
ERPM East Rand Proprietary Mines Limited
FIFR Fatal Injury Frequency Rate
FOG Fall of ground
GHG Greenhouse gas
GN Government notice
GRI Global Reporting Initiative
HDSA Historically disadvantaged South African
HIV Human Immuno-deficiency Virus
JLP Junior Leadership Programme
kW Kilowatt
LED Local Economic Development
LTIFR Lost Time Injury Frequency Rate
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 301 PM Page 50
DRDGOLD Sustainable Development Report 2009 50
Glossary of terms acronyms and abbreviations (continued)
MBOD Medical Bureau for Occupational Diseases
mgL Milligrams per litre
MHSC Mine Health and Safety Council
Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry
ML Million litres
MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa
on 11 May 2004
mSm milliSiemens per metre
MW Megawatts
MWh Megawatt hours
NIHL Noise-induced hearing loss
NNR National Nuclear Regulator
NOx Nitrous oxide
NUM National Union of Mineworkers
OLD Occupational lung disease
pH Measure of the acidity or alkalinity of a solution
RIFR Reportable Injury Frequency Rate
RPO Radiation protection officer
Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major
changes to the regulation of corporate governance and financial practice It is named after Senator Paul
Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy
negotiable deadlines for compliance
TB Tuberculosis
Transco Transformation and Sustainable Development Committee
TSF Tailings storage facility
VCT Voluntary counselling and testing
WUC Western Utilities Corporation
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_25Nov 112509 301 PM Page 51
_________________________________________________________
_________________________________________________________ ____________________________________________________
____________________________________________________
____________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
DRDGOLD Sustainable Development Report 2009 51
Feedback form DRDGOLD would be grateful for your feedback and invites you to
complete this feedback form and fax or email it to
Barry de Blocq
Fax +27 11 476 2637
E-mailbarrydeblocqzadrdgoldcom
1 Personal details
Name ___________________________________________________
Organisation ____________________________________________
Tel ___________________________ Fax _______________________
Email address ____________________________________________
Postal address ____________________________________________
2 What is your interest in or association with
DRDGOLD
Employee Analyst Shareholder
Journalist Community member
Non-governmentalcommunity-based organisation
Student Business partner Supplier
Government representative
Other ndash please specify __________________________________
3 How did you become aware of our report
Delivered or posted to you (printed copy)
Email link sent to you
Through the media
Other ndash please specify
4 How did you view the report
Website version Printed version
5 Have you been aware of or had access to
DRDGOLDrsquos previous reports
Yes No
6 How would you describe the report
Printed version
Too much information
Not enough information
Website version
Too much information
Not enough information
7 What are your areas of interest in this report
Economic performance
Environmental performance
Social performance
Employment Community
Safety and Health HIV amp AIDS
8 Did you read the message from the CEO
Yes No
9 Were DRDGOLDrsquos sustainability development
issues and how they are being dealt with clearly
communicated in this report
Yes No
10 Did you use the Global Reporting Initiative
(GRI) index
Yes No
11 Do you have any other comments on the report
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 309 PM Page e
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page c
Contact details and administration DRDGOLD offices Registered and Corporate
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg
2195
South Africa
PO Box 390
Maraisburg
1700
South Africa
Tel +27 11 219 8700
Fax +27 11 476 2637
DRD (Offshore) Limited
1415 Mount Havelock
Douglas
IM1 2QG
Isle of Man
Auditors KPMG Inc
Bankers The Standard Bank of South Africa Limited
Duncan Lawrie Private Bankers (DRD Offshore)
Share transfer secretaries Link Market Service South Africa (Pty) Limited
11 Diagonal Street
Johannesburg
2001
Republic of South Africa
Tel +27 630 0800
Fax +27 11 834 4398
United Kingdom registrars and bearer office CAPITA IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Tel +44 20 870 162 3100
Fax +44 20 8639 2487
United Kingdom secretaries St Jamess Corporate Services Limited
6 St Jamess Place
London SW 1A 1NP
United Kingdom
Tel +44 20 7499 3916
Fax +44 20 7491 1989
French agents
CACEIS Corporate Trust
14 rue Rouget de Lisle
92862 Issy-les-Moulineaux
Cedex 9 France
Tel +33 1 5530 5900
Fax +33 1 5530 5910
Australian corporate registry
Computershare Investor Service (Pty) Limited
Level 2 45 St Georges Terrace
Perth
Western Australia 6000
Australia
Australian agent
Sygnum Financial Services
62 Colin Street West Perth
Western Australia 6005
Australia
Tel +61 8 9323 2000
Fax +61 8 9323 2033
Depositary bank
The Bank of New York Mellon
101 Barclay Street
New York 10286
United States of America
Tel +1 212 815 8223
Fax +1 212 571 3050
Investor relations
James Duncan
Email jamesraircoza
Website
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom
DRD SDR2009_24NovCover 112509 305 PM Page d
wwwdrdgoldcom