Northam Platinum : Sustainability Report, 30 June 2023

Northam Holdings: Mining that matters

Sustainability report 2023

Introduction	Protecting and developing	Mutual	Positive	Responding to	Caring for the natural	Appendix
	our people	respect	relationships	climate change	environment

About this report

Our sustainability report 2023 includes sustainability information and data for the financial year 2023, which covers the period 1 July 2022 to 30 June 2023. PricewaterhouseCoopers International Limited (PwC Inc.) have completed limited assurance on selected sustainability performance information. Their assurance report can be found on page 90 and data covered by the assurance process is marked with LA.

Contents

2 Introduction

1. About this report
2. Our operations
3. CEO welcome

1. Sustainability performance at a glance
2. Our strategy
3. Key roles and responsibilities for sustainability
4. Sustainable development
5. New materiality assessment in F2023
6. Material themes
7. Protecting and developing our people

14 Health, safety and wellness: Our approach to safety

1. Safety performance
2. Health and wellness

Our reporting suite

This report and other supplementary reports can be found online and should be read together to get a holistic overview of our business and performance.

	Annual		Corporate	Remuneration
	integrated		governance	report
	report		report
Northam Holdings:		Northam Holdings:		Northam Holdings:
Mining that matters		Mining that matters		Mining that matters
Annual integrated report		Corporate governance report		Remuneration report
30 June 2023		30 June 2023		30 June 2023

Navigating this report

This report and other supplementary reports can be found online and should be read together to get a holistic overview of our business and performance.

We use icons to show:

Refers to other pages in this report

Refers to supporting documents on www.northam.co.za

Top 5 material issue

1. Ability to attract and retain talent:

1. Housing and living conditions

1. Learning and development

37 Mutual respect

1. Respect for human rights
2. Employee relations
3. Diversity, equity and inclusion

44 Positive relationships

1. Our community landscape
2. Managing community relations

1. Uplifting our communities

1. Responsible sourcing and mining

60	Responding to climate change
62	Energy management and
64	Northam's decarbonisation
Identifying and reporting

Annual		Summarised
financial		financial
statements		results
Northam Holdings:	Northam Holdings:		Northam Holdings:
Mining that matters	Mining that matters		Mining that matters
Annual financial statements	Summarised financial results		Mineral Resources and Mineral Reserves statement
30 June 2023	30 June 2023		as at 30 June 2023
Notice of		Sustainability
2023 AGM		report

Mineral Resources and Mineral Reserves statement

Material themes that guide our report:

Protecting and developing our people

Respecting one and another

Positive relationships

Responding to climate change Caring for the natural environment

climate-related risks

66 Performance

67	Caring for the natural environment
69	Environmental compliance
71	Water stewardship
74	Mineral waste management
76	Non-mineral waste management
78	Managing emissions to air
82	Biodiversity management
88	Environmental performance data

	Northam Holdings:	This report has been
	Mining that matters
Northam Holdings:	Sustainability report 2023
Notice of the 2023 Annual General Meeting		prepared in accordance
Mining that matters
		with the GRI Standards
		2023, which came into
		effect in January 2023.

See our sustainability hub on our website: https://www.northam.co.za/sustainability/overview.

1. Appendix
2. Assurance report

1. GRI reference

1. Task Force on Climate Related Disclosures

Northam Holdings   Sustainability report 2023

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	Introduction	Protecting and developing	Mutual	Positive	Responding to	Caring for the natural	Appendix
		our people	respect	relationships	climate change	environment

Our operations

Mokopane

Bokoni

Limpopo

Twickenham

Marula

Amandelbult

Dwaalkop

Modikwa

We are an independent, empowered, integrated PGM producer. Our strategy of growing production down the cost curve while reducing operational risk remains in place. Our recent acquisition of an investment in RBPlat is in line with this strategy.

The scope of this report includes our wholly owned South African based operations, Zondereinde, Booysendal and Eland.

Zondereinde

Union

PilanesbergSedibelo

RBPlat

Implats

RPM		Crocodile River	Eland
Rustenburg
Pandora
Eastern & Western Plats

Pretoria

	Two Rivers
	Mototolo
Groblersdal	Der Brochen

Mashishing

Booysendal

Emalahleni

It excludes our joint ventures and recycling facility in the US, which is not considered material.

Key:

Wholly-owned operations

Joint arrangement

Significant interest

Other peer operations

Cities/towns

-Main Roads

0	50	100 km

	Z O N D E R E I N D E		E L A N D		B O OY S E N D A L
S	ƒ Life of mine: > 30 years		ƒ Life of mine > 30 years		ƒ Life of mine > 25 years
O N	ƒ One underground conventional mining module		ƒ Three underground hybrid mining modules		ƒ Six underground mechanised mining modules
I	(3 x shafts)		ƒ One open pit mining module		ƒ Two tailings storage facilities
R AT	ƒ Smelter operation (2 x furnaces)		ƒ One tailings storage facility
P E	ƒ One tailings storage facility
O
E	ƒ Total employees 11 240		ƒ Total employees 3 127		ƒ Total employees 8 001
PL	ƒ HDP in management 63%		ƒ HDP in management 72%		ƒ HDP in management 69%
EO	ƒ Total women in mining 17%		ƒ [Total women in mining 20%		ƒ Total women in mining 22%
P
	ƒ Aquatic - Bierspruit river to west of operations,		ƒ Aquatic - Tributary of the Crocodile river to the		ƒ Aquatic - Groot-Dwarsrivier flows South to North
NT	Crocodile river to east; classified as a Critically		north; classified as an Endangered Ecosystem		through the mining area; classified as a Critically
Endangered Ecosystems		ƒ Terrestrial - Marikana Thornveld ecotype; endemic		Threatened Ecosystem
ME	ƒ Terrestrial - Dwaalboom Thornveld ecotype; not		regional biome identified as threatened		ƒ Terrestrial - Sekhukhune Montane Grassland
N	considered endangered		ƒ Biodiversity status - operations within a classified		ecosystem; Sekhukhune Mountain Bushveld;
RO	ƒ Biodiversity status - operations within a classified		Ecological Support Area; in close proximity to a		Northern Afrotemperate Forest; all endemic and
V I	Ecological Support Area		Critical Biodiversity Area (CBA)		needing conservation
E N					ƒ Biodiversity status - operations within a classified
					Critical Biodiversity Area

Northam Holdings   Sustainability report 2023

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	Introduction	Protecting and developing	Mutual	Positive	Responding to	Caring for the natural	Appendix
		our people	respect	relationships	climate change	environment

CEO welcome

Welcome to our sustainability report for the financial year ended 30 June 2023. In what has been a challenging year for the PGM market, we continue to make good strides in our approach to being a responsible and sustainable company.

I am particularly proud that Northam has created 1 216 direct sustainable jobs (74% from local communities), during the financial year, taking the total jobs created since the beginning of our growth strategy in 2015 to more than 12 300.

The contribution these jobs make to the economies of our local and host communities, as well as the wider South African economy, cannot be understated.

New jobs are just one of many benefits that are created by mining. These benefits are central to our purpose, which articulates our belief in the positive impact of mining. The link between our purpose and sustainability has always been clear, as has the link with our beliefs - belief in our country, in our product, in our people and in our company. This is why we see sustainability as a clear enabler for our strategy and business model, and a key ingredient in our growth.

Our commitment to our local communities extends well beyond job creation. We strive to create value for, and maintain positive relations with our communities. It is testament to our engagement with mine communities that there were no production-related losses arising from community protests during the year.

We continue to create opportunities for procurement from local suppliers, which funnels benefits to local businesses and their employees. We spent more than R1.8 billion with local suppliers this year, a 30% increase over F2022. We also expanded our financial support to address community needs, growing

our expenditure from R1.5 billion to R2 billion across a range of mine and labour-sending area community development projects.

To continue our sustainability journey, we have completed a new materiality process during the year to solidify our view on the most important sustainability and ESG topics for Northam.

While all topics are important and require active management, the top five topics identified are issues we have always focused on: the health, safety and wellness of our people; attracting and retaining the best talent; managing positive relations with our employees and local communities; energy security and reducing carbon emissions; and actively conserving the biodiversity surrounding our sites.

We have used the materiality results to structure our sustainability report into five themes, which reflect areas that have always been core to what we do at Northam. In brief, these themes are: protecting and developing our people, mutual respect, positive relationships, responding to climate change, and caring for the natural environment.

Fundamentally, we are a people-oriented business, and we could not achieve any of our goals without our dedicated, loyal employees. Keeping our people safe will always be a priority and takes precedence over all production objectives. As a business with a continually growing workforce, safety and health is an issue that requires constant attention, reinforcement and investment to maintain the highest standards.

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	Introduction	Protecting and developing	Mutual	Positive	Responding to	Caring for the natural	Appendix
		our people	respect	relationships	climate change	environment

CEO welcome continued

The fact that we can never lose our focus on safety is evidenced by the tragic loss of three colleagues in separate underground accidents at Zondereinde in late 2022.

I wish to personally express on behalf of Northam our sincere condolences to the families, friends and colleagues of Mr Mosetlha David Matlhoahela, Mr Patrick Mokhachane and Mr Mogapi Silas Ntshabele.

All production was stopped while each accident was investigated, and we have implemented remedial actions to prevent similar incidents in the future.

A particular highlight for F2023 is 13 years and eight million fatality-free shifts at Booysendal. Eland and Zondereinde both recorded one million fatality free shifts during the year.

To finish, I would like to highlight several achievements we have made through the year.

Climate change will have far reaching impacts on the people and environment of South Africa. We have a detailed roadmap to deliver our 2030 targets to reduce greenhouse gas emissions and this will begin to deliver results from F2025, when our 80MW solar farm at Zondereinde will come online. A year later, we expect to complete two off-site 140MW wind farms, where we are in the process of negotiating exclusive power purchase agreements. Combined, we anticipate these renewable electricity initiatives, together with energy efficiency projects, to improve our carbon intensity by 60% by F2030.

I encourage you to review the progress we have made this year and we look forward to continuing our journey to build a sustainable, forward-thinking organisation with a strong belief in our country, our product, our people and our company.

Mining that matters

Purpose	Vision	Qualities
We believe in the	To remain a	ƒ	Strong governance
positive impact	sustainable PGM	ƒ	World class asset
of mining. Mining	producer of choice,		base
that benefits our	delivering best value	ƒ	Experienced
employees, our	for our shareholders		leadership
communities, our		ƒ	Efficient service
investors and other			delivery
stakeholders while		ƒ	Effective
minimising our			empowerment
negative impact on		ƒ	Disciplined capital
the environment			allocation
		ƒ	Fit for purpose
			structures
		ƒ	Clear policies and
			procedures

Our commitment to diversity and empowering women in the mining industry is an area I take significant personal interest in. A particular highlight this year was the publication of our special Women In Mining publication: Each One, Teach One, which showcases 33 powerful personal stories from women at Northam.

Our ongoing stance against gender-based violence and sexual harassment, which are endemic in our society, and are inevitably reflected in the mining industry, is another important area of commitment.

Paul Dunne

Chief executive officer

24 August 2023

Our beliefs

Our country

Our product

Our people

Our company

Sustainability is a clear enabler for sustainable growth. It supports our strategy and business model, helping Northam to deliver value to stakeholders by creating growth, transforming lives and protecting our future

Northam Holdings   Sustainability report 2023

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