ESG
Our Communities and Society
Developing robust trust-based relationships with our local and in-country stakeholders, localising our workforce and supply chain and making strategic community investments to deliver skills and development.
2023 highlights
- $1.5m invested in community development
- 92% of suppliers are Zimbabwean companies
- $450,000 dividend paid to the local community trust shareholder
- $146m economic value generated
Our stakeholders are central to our business, and we use a wide range of stakeholder specific engagement methods to ensure their views are adequately heard in an appropriate and timely manner.
The communities nearest to our mine are crucial partners for the viability of our operations. They provide us with a pool of talented workers and a secure operating environment. However, the remote rural areas where we operate often have limited access to fundamental services like healthcare, education, power and water and economic opportunities are scarce. Ensuring we build strong relationships that are sensitive to cultural norms, grounded in trust and deliver benefit to the community, and that we engage in an appropriate manner, is critical to maintain the social licence we need to operate successfully.
CASE STUDY
Powering our People – Installing Powerlines in Sitezi
As part of our commitment to invest in the health and education of our community, construction for the Sitezi Waiting Mothers Clinic and renovation of the Sitezi Secondary school began in 2023. During the planning for this project , it became clear that for the facilities to be effective, a solution for a consistent power source would be necessary. From ensuring temperature controls for medical supplies and samples, to powering lights and computers at the schools, we determined that solar power installation, with connection to the national grid, was the ideal solution. Solar power will provide a renewable energy source which can also remove reliance on the grid due to continued loadshedding concerns.
Although the solar project at Sitezi was not completed in 2023, we have made great progress in providing power to the Sitezi facilities. Power lines have been placed to support the Sitezi Waiting Mothers Clinic, the Secondary School, as well as the Enqameni Vocational Training Centre. These lines are currently connected to the local grid, allowing the schools and training centre occasional access to electricity. Supplies such as batteries and other accessories needed for the installation have been procured. We have begun clearing the land and preparing the infrastructure for the solar installation, which we expect to be commissioned by mid-2024.
Providing meaningful and well-paid work for local people is an important way of contributing to the social development of the local community and broader Zimbabwean economy. Blanket is one of the largest employers in the Gwanda region, where employment opportunities are scarce. We aim to employ talented individuals from the communities closest to our operations and provide them with world-class training and genuine opportunities to progress. We also strive to use our purchasing power to support the creation and development of local businesses.
Caledonia is proud to be the first indigenised Zimbabwean gold mining company. 51% of Blanket was transferred to indigenous Zimbabweans in 2012, when we facilitated the acquisitions of a 10% shareholding in Blanket by a trust in favour of our employees, a 15% shareholding by a group of Zimbabwean investors (which was bought back in 2020) and a 16% shareholding by the National Indigenization and Economic Empowerment Fund (“NIEEF”) of Zimbabwe. A further 10% shareholding in Blanket was donated to the local community trust GCSOT for the benefit of the community.
In addition to the direct ownership by Zimbabweans in Blanket, approximately 22% of Caledonia’s shares are held by Zimbabweans. Since listing on the Victoria Falls Stock Exchange in 2021, we have welcomed new local shareholders who have not historically been able to acquire Caledonia shares.
Our approach to supply chain management is informed by three key principles:
- Continuity of Supply: First and foremost, we must maintain continuity of supply to all operations as efficiently and cost effectively as possible.
- De-risking supply chain: to ensure appropriate and adequate measures are taken to identify and manage potential risks within the supply chain, including ESG risks. We are committed to responsible sourcing and to improving standards among local suppliers.
- Localisation of supply: We strive to use our purchasing power to support the creation and development of local businesses.
Beyond local procurement, recruitment and ownership we also make significant contributions to the Zimbabwean fiscus through the payment of taxes, royalties and other duties and charges. We believe that reliable and transparent disclosure is a fundamental part of good governance and good business; it is also a critical contribution towards the success of Zimbabwe.
Caledonia makes significant investments across seven identified strategic community investment themes or pillars aligned with the SDGs to catalyse community development, encourage the growth of a vibrant self-sufficient economy and drive socio-economic upliftment.
During 2023 our community development investments included the rehabilitation or establishment of a range of critical infrastructure such as the rehabilitation of Sitezi Secondary school to help drive educational outcomes for the region. The construction of a maternity clinic at Sitezi to improve access to maternal care for local women and infants, and the installation of power lines at Sitezi to provide the electricity needed for the school, and the maternity clinic. We also provided water pumps at local market gardens to help ensure access to water and food security for the community.
The sale of the 16% and 10% shareholdings in Blanket to BETS and NIEEF respectively were facilitated through loans being extended to subscribe for new shares in Blanket (shown in the dotted orange line above).
Community Investment and Corporate Social Responsibility
We take a targeted and strategic approach to social investment with our CSR strategy that identifies the critical needs of the communities around Blanket through requests made by direct engagement with the mine, further linking our community work with our chosen SDGs. We are sensitive to the cultural norms and practices of the communities associated with and surrounding Blanket, and ensure engagement is conducted appropriately.
In addition to social investment, Blanket has invested in infrastructure (i.e. roads, housing, water purification and sewerage) that will be made available to the community following the closure of the mining operation.
The focus of our community investment is outlined below. In 2023, we have committed to an additional conservation pillar. Activities funded by Caledonia so far have included a rhino conservation project in the unique Matobo National Park, an important area of biodiversity in the Matobo Hills World Heritage site.
1. EDUCATION
We believe in the power of education as a tool to improve livelihoods. Our support towards education aims to improve the quality of learning, thereby contributing to the upliftment of marginalised students around the Gwanda community. As part of our commitment to education, our community support has included renovations at Gwakwe Primary School, purchasing key resources for Sitezi primary and secondary schools and carrying out improvements to Sabiwa High School.
2. HEALTH
We aim to help communities lead healthy lives by assisting them with access to healthcare and safe water. Having constructed the Phakama Clinic Isolation Centre in 2020, we have continued our work with them into 2022, whilst also supporting wards and water needs at the Sitezi Clinic.
3. AGRICULTURE
Water for agriculture is a vital resource that enables irrigation and sustains animal husbandry in the arid Matabeleland area of Zimbabwe. As part of our contribution towards community agriculture, we have funded market gardens using Blanket’s irrigation infrastructure, constructed livestock water pens and dip tanks around surrounding villages and have begun assessing the viability of boreholes for agricultural irrigation in the area.
5. ENVIRONMENT
We aim to manage and minimise the impact of our operations on the natural environment and contiguous communities. We take part in the national tree-planting day and have made this a permanent feature on our activities calendar as we recognise our role in replenishing the community and environment. Our solar plant was commissioned in 2022 and now provides a quarter of Blanket’s average electricity demand.
4. WOMEN AND YOUTH EMPOWERMENT
We seek to uplift the status of women and youth through education and training. Empowered women and youth significantly contribute to household food security, improved health and overall economic growth. 39% of our students undergoing training at Blanket are female. As part of our strategy to empower youth, we purchased IT equipment for computer sciences training at the Enqameni Youth Reflection Centre.
6. CHARITY
As part of the Gwanda community, we are invested in the everyday challenges confronting our community. The Charity pillar provides that we swiftly attend to emergencies such as natural disasters and epidemics which have adverse effects on the community. Community requests are assessed in line with our CSR pillar. Examples of support to the local area include using waste rock to rebuild roads damaged by heavy rains and partnering with the Ministry of Health and Child Welfare to distribute mosquito nets.