ESG
Our Communities and Society
2022 highlights
- US$0.9m committed to community and social investment.
- Local socio-economic development facilitated through dividends paid to the Gwanda Community Share Ownership Trust (“GCSOT”).
- US$17 million economic value distributed in operating costs, employee wages and benefits, payments to providers of capital and government, and community investment.
Our licence to operate and the long-term success of our business rely on mutually supportive, open and constructive relations with our local communities.
Zimbabwe is a country with limited employment opportunities, and we therefore recognise our ability to significantly contribute to the socio-economic development of our surrounding communities as well as the country as a whole. Whenever possible, we procure goods and services from local suppliers, subject to them being competitive and providing high-quality materials. Furthermore, since listing on VFEX, hawse have welcomed new local shareholders onto the register who have been historically unable to participate in Caledonia’s growth journey.
Local shareholdings in Blanket
We believe we have an ownership structure which enables our local stakeholders to meaningfully share in the value of our business. As the first indigenised Zimbabwean gold miner, 51% of Blanket was either sold or donated to indigenous Zimbabweans in 2012.
Caledonia facilitated the acquisition of a 10% shareholding in Blanket by a trust in favour of our employees; a 16% shareholding by the National Indigenisation and Economic Empowerment Fund (“NIEEF”) of Zimbabwe; and a 15% shareholding by Fremiro Investments (Private) Limited (“Fremiro”), an investment vehicle controlled by indigenous Zimbabweans. A further 10% shareholding in Blanket and US$1 million was donated to GCSOT for the benefit of the local community.
Following the repeal of the National Indigenisation and Economic Empowerment Act in 2018, Caledonia purchased Fremiro’s 15% shareholding in Blanket in January 2020 in exchange for shares in Caledonia. The resultant shareholding of Blanket is currently as follows.
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.