APPROACH, SCOPE AND BOUNDARY
THE INTEGRATED REPORTING JOURNEY
The Board of Directors’ Report for 2010 was Kumba’s first step on its journey towards developing a fully integrated report. This journey has continued in 2011.
Kumba recognises that the group has a responsibility to engage with and report to a broad range of stakeholders, including shareholders, employees, customers, communities, suppliers, government, regulatory authorities, unions and the public at large. In this report, the group presents a holistic ‘picture’ of the business, covering its operating context and markets, the opportunities and challenges it faces, the strategy, the operational, financial and non-financial performance for the year, and objectives and outlook for the year ahead. Issues and concerns raised by stakeholders actively inform opportunities and challenges within the business.
In developing this report, Kumba has applied the recommendations of the King Code of Governance Principles for South Africa 2009 (King III), the Integrated Report Discussion Paper published by the Integrated Reporting Committee of South Africa, as well as the discussion paper, Towards Integrated Reporting: Communicating Value in the 21st Century, published by the International Integrated Reporting Committee.
An independent gap analysis of the 2010 report against King III, peer reports and considered integrated reporting best practice also informed the outline and content of the 2011 report. In this report, Kumba has focused on the issues that are considered to be most material to the business and to its stakeholders, and has followed a structured process in determining these. Kumba’s approach to stakeholder engagement, the topics raised by its stakeholders, as well as the issues that are most material to the business and its stakeholders are reported in the Stakeholder engagement and Material issues sections respectively.
This report forms part of a suite of reports produced by the group.
This suite comprises:
- the Abridged Integrated Report 2011, including the notice of annual general meeting (AGM), which has been posted to all shareholders;
- this document, the Integrated Report 2011;
- the Sustainable Development Report 2011, which focuses on the economic, social and environmental impacts of the group’s business in greater detail;
- the Annual Financial Statements 2011, which reports in detail on the group’s financial performance and operating position;
- the Report to Employees 2011, an abbreviated report which focuses on the issues that are important to employees, and
- Kumba’s online report 2011, which presents all of the above reports (with downloadable pdfs) on an interactive web platform at http://www.angloamericankumba.com/reports/kumba_ar2011/ index.php.
Printed copies of the Integrated Report 2011, Annual Financial Statements 2011 and Sustainable Development Report 2011 are available on request.
Stakeholders are encouraged to provide feedback on Kumba’s reporting as this feedback and suggestions will be taken into consideration as the group continues its journey. A feedback form is available in the Sustainable Development Report 2011 and at http://www.angloamericankumba.com/reports/kumba_ar2011/ index.php.
SCOPE AND BOUNDARY
This report provides an integrated review of Kumba for the 2011 financial year, from 1 January 2011 to 31 December 2011. It forms part of a suite of reports that gives an overall account of the group’s operational, financial, economic, social and environmental performance, as well as governance, during the period under review. Historical information is supplied for context where appropriate. Also supplied is an outlook where this supports an understanding of the strategy of the business.
The report covers the primary operations owned and managed by the group, namely the Sishen, Thabazimbi and Kolomela mines as well as the group’s logistics and marketing operations. Production at the Kolomela mine started during the year under review.
The audited annual financial statements have been prepared in compliance with International Financial Reporting Standards and the International Financial Reporting Interpretation Committee’s interpretations of standards; the South African Companies Act No 71 of 2008 (The Companies Act); the Listings Requirements of the JSE Limited; and the AC500 standards as issued by the Accounting Practices Board. The annual financial statements have been audited by Deloitte & Touche. An unmodified audit opinion was issued and is included on page 12 of the Annual Financial Statements. Both the Integrated Report and the Sustainable Development Report have been developed in line with the G3.0 Guidelines of the Global Reporting Initiative (GRI) and GRI’s Mining and Metals Sector Supplement. Kumba has declared an A+ level of reporting, and this has been assured by PricewaterhouseCoopers. See the assurance statements here.
While Kumba is not a member of the International Council on Metals and Mining (ICMM), Anglo American plc, the group’s major shareholder, is, and for this reason the Sustainable Development Report also takes the framework and principles of the ICMM into consideration.
Kumba has internal systems in place for data collation, and these are aligned with the data collation requirements of the Anglo American plc Group of companies. Internal and external audits of the group’s systems and data are carried out on a regular basis.
THE BEST OF THE YEAR
|Kenneth Vogies and Lester Assegaai, both operators, finishing their shift at Kolomela mine.|
|Look out for important references
in this document