SIOC-CDT Investment Holdings Pty Limited - Owner
The Sishen Iron Ore Company, in diversifying its shareholding to historically disadvantaged individuals, chose to empower the communities that played host to its operations through the principles of Broad-based Black Economic Empowerment. The objective is that communities must become economically active and empowered to the extent that they would be sustainable even when mining ceased.The vehicle chosen for this was the Sishen Iron Ore Community Development Trust (SIOC-cdt), the custodian of the investment made into the communities, and the operational entity to provide oversight to all the activities related to the beneficiary communities.
The SIOC-cdt is governed by a Board of Trustees and the framework for operations is prescribed in the Trust Deed.During the setup phase, the SIOC-cdt (Super Trust) focused on working with local communities and developing a strong local economic development thrust. The local authorities were the main focus for such a development, with the Super Trust and the local authorities leveraging on each other’s efforts. In addition, we involved local community development forums which brought community leaders, non-governmental organisations and other stakeholders into the process, and representatives were appointed as trustees for the local Beneficiary Trusts.Five local trusts were identified and where necessary, established one for each of the communities associated with the Sishen Iron Ore Company’s mines:
Gamagara Development Forum;
John Taolo Gaetsewe Developmental Trust;
Maphalane Disability Trust;
Tsantabane Community Development Trust
Godisang Thabazimbi Community Trust.
Each of the community trusts elected a representative as a trustee on its Board. Each benefit the community. These projects are either new or existing that are deserving of sponsorship and that it believes will benefit the community. These projects are then submitted to a review process which evaluates them to see if they are in accordance with the Super Trust’s mandate and whether they further the community’s interests and empowerment.
The projects are judged on their viability and sustainability. This is an iterative process that may require re-work of proposals to meet the set criteria of the project review process before approval. There is a governance framework for each of the approved projects. A memorandum of undertaking is entered into with the project implementers’ accountability, the local trustees and the Super Trust. This determines the benchmarks for measurement, the manner in which the money will be disbursed and the project implementers accountability.Building on our experience and learning to date, we are well-positioned to use our successes to be the foundation of transforming our communities and ensuring that they are empowered and sustainable beyond the time that mining operations might cease.
