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An end to platinum miner’s single-sex hostels imminent

28th March 2014

By: Mia Breytenbach

Creamer Media Deputy Editor: Features

  

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Platinum-group-metals producer Lonmin aims to complete the conversion of its remaining 20 single-sex hostel blocks by the end of September, group business transformation executive VP Barnard Mokwena tells Mining Weekly.

“It is a very symbolic project for us at Lonmin, as it marks the end of the single-sex hostels and the end of a chapter that is associated with an unfortunate aspect of the legacy of South African mining,” he says.

About R90-million was allocated to this year’s phase of the hostel conversions, notes Mokwena, adding that the project is still on track.

Of the 20 hostels, three blocks at Eastern Platinum mine (EPL), six blocks at the Karee site and 11 blocks at the Wonderkop site, all near Rustenburg, in the North West, still need to be converted.

The mining group started converting its 128 blocks of single-sex living quarters at the Wonderkop, Karee and EPL mines in 2008, says Mokwena.

“When the hostel conversions are complete, the result will be 796 family units and 1 868 individual units, which will provide accommodation for about 2 664 employees and their families.”

The new converted blocks, comprising one-bedroom flats and two-bedroom family units, will be fully furnished and allocated to Lonmin families and individuals.

“Units will also be allocated to female employees who are in the mining programme,” Mokwena adds.

Challenges

Mokwena says there were some “unintended consequences” owing to the hostel conversions, as some employees were forced to seek back-room accommodation in local informal settlements during the construction period.

“Although the employees were awarded living-out allowances, this was perceived as additional disposable income and, therefore, used for other purposes.”

Mokwena adds that no other accommodation arrangements had been made, as the living-out allowance was expected to enable employees to take up a range of accommodation options.

Other unfortunate consequences of the conversion included the displacement of employees, he says. “While the hostels could previously accommodate almost 100 employees, the converted blocks only yielded space for 20 to 30 employees,” says Mokwena.

Further, employees were exposed to several health and nutritional issues, as they no longer had the benefit of the three meals a day at the hostels and often did not have access to proper ablution facilities.

Employees’ Housing Requirements

Having conducted a survey in 2010 to determine the housing requirements of its workforce, Lonmin determined that most of its employees are migrant workers from Swaziland, Mozambique, Botswana and the Eastern Cape, besides other South African provinces.

“Because these employees already have homes in other areas, the research determined that 85% of them preferred rental options for accommodation, while only 15% expressed the wish to own a house in the surrounding area,” Mokwena notes, adding that this important market information determined the company’s strategy to focus on rental options.

Further, the research indicated the employees’ willingness to pay rent for back-room accommodation in Marikana’s informal settlements, which are often without running water, ablution facilities and electricity, with rent ranging from R800 to R1 200 a month.

Alternatively, Lonmin’s human settlements strategy focused on finding a marketable rental solution and a product solution that would provide employees with adequate accommodation, including privacy and ablution facilities, within the current rental price range.

Employee Feedback

Mokwena says feedback from employees already living in the converted hostels is positive, although the waiting list is long. “These converted rooms suddenly offer privacy for employees, which is a powerful, liberating moment for workers who have not had private rooms or privacy in their living quarters for many years,” he says, adding that privacy ensures that employees receive enough rest to be fit for work.

“It’s not just about brick and mortar, it’s about giving our employees – our people – the space to rest and do what they choose to do in the privacy of their rooms. That is the power of converting these hostels into single private rooms,” he stresses.

Employees can rent the flats in the converted blocks for as long as they are employed at Lonmin, says Mokwena, adding that the rent, which includes water and electricity expenses, is deducted from the employees’ salaries.

He further notes that, unfortunately, the Wonderkop, Karee and EPL sites have different rental policies owing to arrangements made in the past. “So, rental amounts for the new flats are not the same at these different sites. On average, however, all Lonmin employees pay about R300 a month for the converted flats, which is deducted from their monthly R1 950 living-out allowance,” he says.

However, the company aims to introduce equal rent for these flats and yearly rent increases, as part of their future human settlements strategy.

Mokwena further cites affordability as the company’s biggest obstacle in encouraging employees to use the accommodation it provides.

“The solution for rental options has to be within the back-room rental range, as employees will not opt for more expensive accommodation,” he points out.

Once the hostel conversions are complete, Lonmin will amend its old hostel administration and management philosophy to model its administration policy on that of a secure estate. This will provide better security control for the employees, as well as for the women and children living in the apartments.

“In addition, renovations will be made to the recreational facilities to better suit the employees and their families,” he says, further explaining that the company will invest in the redesign and greening of the surrounding area, which will involve constructing pathways, roads and parking areas, as well as introducing landscape designs and parks.

Future Housing Opportunities

Lonmin will invest another R500-million in its human settlements strategy over the next five years to provide additional accommodation for its employees, Mokwena says. About R100-million will be invested in accommodation every year.

He tells Mining Weekly that Lonmin currently employs about 23 000 people, falling under its Category 4 to 9 entry-level employees, all of whom need accommodation.

Of these 23 000 employees, 2 664 will live in the converted blocks by the end of the year, while 369 employees are living in houses at the Karee site, with 280 currently housed at Wonderkop. Another 500 rooms accommodate workers at the Marikana housing development corporation, while 22 rooms are occupied at the Mooinooi site.

Further, Lonmin estimates that about 3 100 employees from the surrounding local communities are renting accommodation or houses in these areas.

However, about 16 000 employees still need accommodation, notes Mokwena.

To provide future accommodation for these employees, the company will implement another three projects as part of its human settlements strategy, which will be conducted in partnership with the North West province, the Rustenburg municipality and any other third parties that are interested in contributing to these projects.

Using “ample” property space surrounding the converted blocks at the Wonderkop and Karee sites, plans are under way to construct new apartment blocks and recreational facilities for Lonmin employees.

Mokwena says the company aims to provide accommodation for 4 000 to 5 500 people in these new apartments and plans to start construction in 2015. “We are just awaiting the completion of the hostel conversion in September this year, and then we will start with the in-fill programme, which is construction of the new apartment blocks, landscape conversions and renovations.”

He adds that requests for design proposals for the new apartments were issued in January, including requests for energy efficient technologies to be implemented in the design, such as solar and water-saving technologies.

Further, Lonmin has contributed 50 ha of land as part of a public–private partnership with the Department of Human Settlements and the North West provincial government in support of the Presidential Initiative to improve living conditions in Rustenburg. The partnership was finalised in October last year.

The serviced land, which forms part of the integrated human settlements project, already has roads and an adequate water and sewerage system and will comprise different types of accommodation once developed, notes Mokwena.

He adds that Lonmin and the provincial government are in an advanced stage of finalising the town planning.

In addition, Lonmin has another 134 ha of unserviced land, which will be made available for future housing and accommodation developments.

Mokwena emphasises the importance of these types of integrated projects, as the company, in partnership with other parties, can provide a sustainable accommodation solution for employees and the surrounding communities.

“We want to fit in with the housing and settlements plans so that the accommodation is not just a little Lonmin mining town, but forms part of the surrounding communities and environment,” he says, concluding that the housing solutions must be a market-driven solution, instead of a solution driven solely by the needs of a mining company.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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