Platinum miners continue to enrich the lives of their workers
Following the success of platinum miner Impala Platinum’s (Implats’) Sunrise View housing project, in the north-eastern Rustenburg suburb of Boitekong, which entailed the provision of 1 700 housing units, the company launched the R40-million Springs housing project in January to establish 108 housing units by mid-2013.
Construction on the project started a year ago and is close to Implats’ refineries, which employ 500 workers. Implats says that 180 housing applications have already been filed before project implementation.
“As our workers realise the value of owning a house and being part of a community, the demand for these houses has grown significantly, which proves that the education that Implats has provided for its workforce regard- ing housing and living conditions has been successful,” states Implats group executive of strategic finance Leon van Schalkwyk.
Implats embarked on a strategy in 2007 to identify what needs to be done to provide adequate housing for its workers in South Africa. Over the last five years, the company has spent about R2.2-billion on living conditions.
The platinum giant also launched a billion-rand project in January to build 2 400 units in Platinum Village, Rustenburg. Construction has already started, with the first units to be allo- cated in April.
Further, the company currently pro- vides high-quality living conditions for a third of its employees and aims to continue enriching the lives of its workers through adequate housing, schooling and community development.
The company also has a pool of houses that it rents to workers at supervisory level. It has also completed renovations to its old hostels, turning them into three- bedroom units, each with one bath- room, which can accommodate up to three workers.
“Because we are delivering successful results and enhancing the lives of our workers, our relationship with the Rustenburg municipality is positive,” states Van Schalkwyk, adding that the mayor helped Implats to deal with community issues in the building of a local school as part of its Sunrise View project.
Sunrise View Project
This project facilitates home ownership for Implats’ workers.
The company bought farmland in the Rustenburg municipality and converted it into decent housing assets for Implats employees. Each unit was sold to the workforce for R265 000. “We provided a one-third interest-free loan as a second bond on a house, enabling workers to borrow only two- thirds of the bond value from the bank,” Van Schalkwyk explains.
Therefore, workers can get an attractive interest rate and their monthly bond instalment is less than their living-out allowance. The cost of a three-bedroom unit is less than R2 000 a month and the units are modern, of a high standard and per- sonalised, he adds.
This repayment includes housing insurance, but excludes water and electricity, although Implats has had solar units installed to render electricity costs more affordable.
“We have tried to create a bottom-end quality housing asset and have constructed proper streets, with speed bumps and streetlights,” states Van Schalkwyk, highlighting that the development aims to instil a strong sense of community in the suburb.
The company has also developed social amenities, including churches, crèches and a clinic. It has also actively promoted and cofunded a primary and high school with the provincial government, and the first learners enrolled in January 2013.
In addition, Implats planted 6 000 indigenous trees in the area and has hosted gardening competitions. “The homeowners are proud of their houses and look after them well. Some of the units are now selling at close to half-a-million rand,” Van Schalkwyk notes.
The Sunrise View housing project entails a 10% public participation, with 90% of the units reserved for Implats employees. Public participation is about 10%, with a higher free-market price per unit.
Housing Development in SA
“Mines do not do enough to ensure community development and proper mine-site accommodation and housing for mineworkers,” Van Schalkwyk notes.
However, the problem of housing is evident across South Africa and not unique to the mining industry. South Africa’s housing industry com- prises low-cost housing, informal settlements, houses valued at close to R1-million and upmarket homes above R1-million.”
“This leaves nothing in the R300 000 to R400 000 region, rendering it impossible for lower-income people to own a housing asset,” Van Schalkwyk points out.
Low-cost houses also have no market in terms of resale value. Once you own a low-cost house, you own it forever, as there is no security regarding home ownership, which makes transferring it impossible.
Therefore, Implats embarked on the strategy to provide housing assets to its employees, making workers proud home- owners and enriching their lives, Van Schalkwyk concludes.
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