For more information contact:

Zama LuthuliRichards Bay Coal Terminal

P O Box 56Richards Bay

3900

Tel: 035 904 4911Fax: 035 904 4027

E-mail: zluthuli@rbct.co.za

Annual Review &Sustainability Report

2006

Contents

· Foreword

· Chief OperatingOfficer’s Report

· Company Profile

· Our StakeholderEngagement

· Our Finances

· Risk Management

· OperationalPerformance

· Our Growth

· Our People

· Our Development

· Our Safety, Healthand Environment

· RBCT in theCommunity

· Welfare andCommunity ServiceSupport

2006 will be remembered as one of the mostmomentous in the history of RBCT. It was a yearin which we excelled in every sphere, not justoperationally, but also in terms of our award-winning people performance, our socialinterventions and our globally certified safety,health and environmental programmes.

Phase V Steams AheadThe launch of our Phase V Expansion Project bythe Minister of Minerals and Energy, Ms BuyelwaPatience Sonjica on 22 September stands out asthe most significant event during the period underreview. At the time of going to print, we are amere seven months into the project, yet we canalready see tangible civil and constructionprogress in and around the site.

Our management and staff share my excitementat being involved in this mammoth project thatwill cement RBCT’s position as the world’s singlelargest export coal terminal for years to come.

Sound Operational PerformanceRBCT continues to provide its shareholders andcommon users with a lean and efficient coal-moving service. In 2006 we set no fewer than fournew world productivity records. That we achievedthese record-breaking operational efficienciesamidst the construction activities of Phase V is aclear indication of our ability to handle ourincreased output at the conclusion of the projectin 2009. The challenge going forward, will be tosustain this sterling performance, and to do itsafely.

Our PeopleAs with any company, our success is determinedby the combined contributions of our workforce.

At RBCT we believe in developing our humancapital to allow each and every one of ouremployees to achieve their full potential. Weachieve this through a holistic range of personaland team development interventions and a hostof further learning opportunities ranging from AdultBasic Education and Training to in-house trainingand external tertiary education bursaries andstudy grants.

We are proud of the rich cultural diversity that wehave achieved at RBCT, as we strive to ensurethat our workforce is truly representative of thedemographics of South Africa.

The needs in the rural communities aroundRichards Bay are great. RBCT has risen to thechallenge of supporting sustainable developmentin the region, with the active involvement of itsemployees, and in partnership with several localcommunity organisations.

We have an active Corporate Social Involvement(CSI) Committee consisting of volunteers andpeer-nominated union and employeerepresentatives. The Committee ensures thecredibility of the CSI process and directs theavailable funding to address the most pressingneeds in their communities, such as education,job creation, primary health care, combatingHIV/AIDS, and preserving our environment forfuture generations.

Our EnvironmentWe recognise that RBCT operates within anecologically-sensitive, natural environment -characterised by abundant plant and animal life.Bearing testimony to the health of the environmentwithin which it operates is the flourishing MarineReserve adjacent to our site.

We delight in the visiting dolphins, and sightingsof pelicans, flamingos, fish eagles, waders, crabsand a host of other bird and marine life, are anormal occurrence at RBCT.

We are proud of our ISO 14001 CertifiedEnvironmental Management Programme and areardent supporters of the identification of an areawithin the Marine Reserve as a possible NationalHeritage Site.

Throughout our day-to-day operations and theimplementation of the Phase V Expansion Project,we remain committed to minimising any potentialfor our world-class operations to negatively impacton the surrounding environment.

2006/7 Highlights

· Launch of the Phase V Expansion Project.· Breaking four world production records.· Participated for the first time in the “Best

Companies to Work For” in the Deloitte& Touché Annual Survey.

· Retention of ISO 14001 EnvironmentalCertification.

· Certification to the global occupationalhealth and safety standard - OHSAS18001.

· Finalist in the National Productivity Awardhosted by the National ProductivityInstitute.

· Voted one of South Africa’s Top 100Companies (Finance Week).

· Business Excellence Award Runner up inthe Best Large Business Category(Zululand Chamber of Business).

· Best on Show Award in the CorporateCategory at the Zululand EXPO.

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Terry Howarth

RBCT’s strategic approach to business in terms ofthe principles of efficiency and reliability hascreated a very sound reputation with both buyersand ship owners in the export market. During2006 four key strategic objectives were identifiedat RBCT to move beyond our traditional businessapproach:

1. Reinforce the company’s mission andvision, and roll-out a new set of corevalues;

2. The management of internal and externaltransformation guided by a unique internalcharter that commits RBCT to a steadyprocess of empowerment through training,shareholding, employment equity,affirmative procurement, enterprisedevelopment and the development ofdisadvantaged communities;

3. The implementation of a stakeholderengagement strategy; and

4. The approval of the R1.1 billion Phase VExpansion Project.

RBCT’s sustainability strategy for 2007 has identifieda number of initiatives to enhance all aspects ofthe company’s business operations:

· Plant structural integrity;· People productivity;· Phase V and the future;· Stakeholder engagement;· MVV 2007 Initiatives;· Employer of choice;· Benchmarking;· Broad Based Black Economic

Empowerment;· Energy Efficiency.

Richards Bay Coal Terminal (RBCT) is the largest single export coal terminal in the world. Establishedin 1976 with an original capacity of 12 million tons per annum, RBCT has grown into an advanced 24-hour operation with the capacity to export 72 million tons of coal per annum to buyers around theworld.

MissionRBCT provides a valued link in South Africa's coal export chain, to the benefit of all stakeholders.

VisionTo be the terminal of choice, optimising stakeholder value.

Core Values

Continuous improvement (Transformation, adaptability,training and development, innovation, inspiration, customerfocus)

On time, all the time, every time (Ethical, dedicated,committed, consistent)

Achieving targets consistently (Quality, accuracy, speed,meeting deadlines)

Accepting ownership and taking responsibility for our actions(Responsible, good corporate governance, empowerment,safety, environment, pride)

Respect and honesty (Integrity,diversity, transparency)

5 6

Left to right: Colin Smith – General Manager Human Resources, Steph van Jaarsveld – GeneralManager Phase V Project, Neil Scrimgeour – General Manager Operations, Kuseni Dlamini – ExecutiveChairman, Alan Waller – General Manager Finance, Terry Howarth – Chief Operating Officer, RaymondChirwa - General Manager Engineering. Inset: Tebogo Tihabanelo - General Manager TechnicalServices.

Stakeholder CommunicationRBCT subscribes to a philosophy of providingmeaningful, transparent, understandable andtimeous information to all its stakeholders. Wealso recognise the value of relationships with ourvarious stakeholders (employees, suppliers,shareholders and government) and theserelationships are sustained through the company’sinternal and external communication strategies.

During 2006, RBCT hosted a visit by the Minister ofPublic Enterprises, Mr Alec Erwin, and the CEOsof Spoornet, the National Ports Authority (NPA)and the South African Ports Operations (SAPO).We also jointly hosted the 30th anniversary of RBCTand the Port of Richards Bay with the NPA andSAPO.

RBCT started regular processes of engagementat CEO level with key strategic partners such asSpoornet, NPA, Bateman Africa Limited (Bateman)and the South African Bureau of Standards (SABS).This has been crucial in enabling us to proactively

and constructively deal with key operational andstrategic issues. RBCT and Spoornet agreed toconvene a joint strategic session early in 2007 toidentify areas for improvement and collaborationin appropriate areas of the coal export valuechain.

RBCT was invited to be part of two Presidentialdelegations to Brazil and China, led by PresidentThabo Mbeki, comprising cabinet ministers, CEOsand Chairmen of some of South Africa’s leadingcompanies. The Executive Chairman of RBCTwas selected to chair the official address by thePrime Minister of France, Dominique de Villepin,during his visit to South Africa towards the end ofthe year.

Our business is defined by the interactions wehave with our stakeholders - our shareholders,management, employees, contractors, tradeunions and employee representatives, thecommunities in which we operate, businesspartners, suppliers, government and civil society.

We believe that long-term relationships foundedon trust and mutual benefit are vital to our businesssuccess, and such belief is outlined in our vision,mission and core values.

As a non profit organisation, we have responsibilityto our shareholders to deliver economicperformance that is in line with their mandatesand expectations. For our shareholders,sustainable outcomes are driven by the need forthe consistent supply of coal to world markets. Asa global corporate, we also take it upon ourselvesto ensure that we communicate the need tobalance economic performance withenvironmental and social performanceimperatives.

7 8

RBCT’s Shareholder Structure

27.48%

BHP Billiton Energy Coal South Africa Ltd

Anglo Operations Ltd

Xstrata South Africa (Pty) Ltd

Total Coal South Africa (Pty) Ltd

Sasol Mining (Pty) Ltd

Kangra Coal (Pty) Ltd

Eyesizwe Coal (Pty) Ltd

1.20%2.30%5.00%5.68%

20.91%37.43%

Risk ManagementRBCT’s board of directors bear ultimateresponsibility for the company’s risk management.Responsible for the total process, the board setsthe risk strategy, which is based on the need toidentify, assess, manage and monitor all knownforms of risk, in liaison with the executive chairman,the chief operating officer, general managementand the risk manager.

The management of risk and sustainability isinherently an operational function, with RBCT’smanagement team being accountable to theboard for designing systems, implementing andmonitoring the process of risk management andintegrating this process into the day-to-dayactivities at RBCT.

Included in these systems is a regular programmeof internal and external audits of various aspectsof the business, such as legal compliance, projects,review of effectiveness of mitigating controls,human resources, health and safety, environment,emergency planning, business continuity anddisaster recovery planning and informationmanagement.

In addition to RBCT’s other compliance andenforcement activities, we recognise the need

for a confidential reporting process to cover fraudand other risks. RBCT has a policy of zerotolerance on bribery and corruption. Allemployees and suppliers have been advised ofour position concerning fraud and unfair businesspractice at RBCT, and any instance of which canbe confidentially reported to the executivechairman, chief operating officer, our secure tipoff line “Whistleblowers” or the risk manager.

9 10

Procurement

Black Economic EmpowermentRBCT is committed to broad-based blackeconomic empowerment (BBBEE) and procuresan increasing amount of its total purchases ofgoods and services from black-owned and/orblack-influenced companies. Emphasis is placedon initiatives that ensure the meaningfulcontribution of previously disadvantagedindividuals to the mainstream economy.

Through a concerted engagement process, RBCTmanaged to exceed our 2006 BBBEE spend targetof 30% (as prescribed by the Draft Maritime BlackEconomic Empowerment Charter) by an actualof 50%.

On 29 November 2006, black empowermentcompany, Masana Petroleum Solutions wasawarded a five year contract, worth R70-million,to supply and participate in the management offuel and lubricants for RBCT. The promotion ofBBBEE businesses ensures that BBBEE suppliers haveaccess to RBCT’s supply chain and thatprocurement is consistent with government’sst rategy on preferent ial procurement.

RBCT will be implementing the new empowermentscorecard platform based on the Department ofTrade and Industry’s (DTI) Broad-Based BlackEconomic Empowerment (BBBEE) Codes of GoodPractice during 2007, with our target forpreferential procurement increasing to at least50%.

Our BBBEE procurement policy includesprocurement of all goods and services requiredfor the daily running of the coal terminal, includingroutine maintenance, refurbishment projects,capex and future expansions. One of ourobjectives is to promote local small business andin particular entrepreneurship in previouslydisadvantaged communities.

RBCT is also committed to mentoring emergingblack small, medium and micro enterprise (SMME)sector in financial and procurement managementas well as encouraging the formation of newenterprises of all sizes. An example of such acompany is Fukula Construction who providesRBCT with civil maintenance, site clearing andcoal screening services.

Materials ManagementIn pursuit of effective cost containment in materialsmanagement, RBCT intends to benchmarkourselves against other companies. Tocompliment our performance measures,productivity measures were implemented at thebeginning of 2006 and statistics were capturedthroughout the year. Performance indicatorsinclude efficiency measurement and humanproductivity. The objective of this benchmarkingexercise is to enhance future performance of theterminal and continuously improve our businessprocesses.

Defined Expenses

Maintenance

Production

Salaries & Wages

Employee Benefits

General Expenses

4%

13% 3%

20%

17%43%

RBCT’s Expenditure for 2006

Performance at a Glance

Criteria Target 2006

True Gross Load Rate 3 974 tons 3 880 tons

Train Handling Time 2.23 hours 2.23 hours

Tons Exported 66 476 205 *

Tons Received 66 357 931

* This included 3.6 million tons exported on behalf of “common users” (primarily BEE) coal producers.

Vessels:

Criteria 2006

Number of vessels 621

Average ship size 115 026 tons

Average cargo size 107 047 tons

Average parcel size 81 168 tons

Gross berth occupancy 72.92%

Trains:

Criteria 2006

Scheduled trains 9 482

Trains Ran 8 765

RBCT saw a year of tremendous activity especially in our engineering and operations departments.

During 2006, management identified a need to improve the overall capability within our Operationsand Engineering Divisions. With the introduction of a new work practice governed by the philosophyof “Mission Directed Work Teams”, this programme has shown significant progress in both Divisions.

Operational Performance

The Operations Division has 17 teams that oversee the planning and operation of both the plant andrail sections. Driven by the combined efforts of the “Mission Directed Work Teams”, each and everyteam member within the Operations Division contributed to the high performance, evident by thebreaking of four new records during 2006.

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GREAT Records:· In December 2006, the Rail Teams broke the Train Handling Time record of 2 hours 18 minutes set

in October 2004; a new Training Handling Time of 2 hours 13 minutes was achieved.· On 19 September 2006, Shift 1 broke the 8 hour export record of 165 500 tons set by Shift 3 on 19

August 2006. A new record of 172 446 tons was achieved.· Also on 19 September 2006, over a period of 24 hours, all three shifts combined broke the record

for export tons loaded of 397 273 tons set in August 2006. A new record of 409 809 tons wasachieved.

· On 13 April 2006, the largest shipment ever record was achieved when 203 384 tons was loadedon Ocean Vanguard. The previous record was 203 128 tons loaded on SG Enterprise inDecember 2004.

2006 was a busy year for our Technical ServicesDivision. With great team effort, five major projectswere completed:

· The implementation of the last wagon project;· Successful modification work on Stacker-

Reclaimer 11 lever mat knuckle;· Implementation of a number of workflow

applications towards creating an ICT cultureof “one portal” where employees can have1-stop access to information on companymatters;

· Tandem Tippler 5 (TT5) positioner drive upgraderesulting in a reduction in tipping cycle time.Best results obtained in November to datebeing 1:23 vs. a target of 1:27; and

· We also achieved scores in excess of 95% inour internal customer IT survey – a clearindication that we are exceeding our customer

service expectations in the areas of desktophardware and software support, HR and payrollappl icat ions and SAP appl icat ions.

Safety still remains the most important goal in ourdivision and unfortunately we had our first disablinginjury (DI) in eight years. As a result we arededicated to a more behaviour-based safetyapproach.

Our division will continue to focus on skillsdevelopment, promoting and influencing thedevelopment of SMMEs and mentoring initiatedduring 2006, ensuring the availability of vendorsfor project work, a “Zero Defects” approach toquality, and additional enhancements to workflowin the Information Technology arena.

Engineering Delay Time

45

40

35

30

25

20

15

10

5

01996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

ENG Target

1413

Technical Services

One of the key elements in RBCT’s operationalperformance is plant availability and reliability.2006 saw an all-time annual downtime record of11.88 minutes per 10 000 tons (annual target: 13.76minutes per 10 000 tons), which is a 6.3%improvement from the 2005 downtime of 12.68minutes per 10 000 tons.

We achieved this significant performance throughownership of:

· Reliability Centred Maintenance Systems(RCM2) used as a guiding tool to plan machinemaintenance;

· Through teamwork that met the objectives ofthe engineering department;

· Continuous improvement; and

· Performance management contracts.During 2006, we also identified preventativeoperational and safety actions which willenhance our department’s performance. Ourchallenge is to fully implement and optimiseour processes developed.

Teamwork plays a crit ical role in plantperformance as well as the long-term businessviability of RBCT. With the introduction of “MissionDirected Work Teams” and on-going training,productivity has increased within the division. Thedowntime in operations has halved throughteamwork, planned engineering shut downs andstrategic planning.

Engineering Performance

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In August 2006, RBCT’s Phase V Expansion Projectwas approved by our Board of Directors, markinga new era of growth and transformation for RBCT.The expansion, estimated at a cost of R1.1 billion,will see the terminal expand from its current annualcapacity of 72 Mtpa to 91 Mtpa.

Included in this expansion is a fifth tandem tipplerfor offloading, increased stockyard capacity, astacker / reclaimer, supporting infrastructure, anextension of the dedicated quay to five capesize berths measuring 1,9 km and two waterrecycling dams.

The focus of Phase V is greater access to exportmarkets for black empowered export coalproducers and historically disadvantaged SouthAfricans by means of:

· Special provision being made to encouragea new generation of coal exporters byearmarking 4 Mtpa for emerging Black

Economic Empowerment (BEE) exporters.· South Dunes Coal Terminal, which will be a

two-thirds BEE controlled company, will takeup 6 Mtpa of the expansion. By incorporatinga number of coal exporters under the umbrellaof SDCT, there is an opportunity for coordinatedBEE participation in the expanded terminal.

· 9 Mtpa of the expansion capacity will be openfor tender with an emphasis on empowermentto facilitate the transformation of the SouthAfrican coal export industry. The capacitywould be made available through newshareholding or commercial usagearrangements at internationally competitiverates.

The project will take 31 months to complete(Second quarter 2009) and we anticipate that3 500 jobs will be created through the relatedmining projects and this project, during theconstruction phase.

Projects underway: Due DateQ-Line CompletedSite clearing for Environmental Systems Upgrade Project (Esup) Dams CompletedEsup Dams February 2008J-Line site clearing to prepare for platform February 2008Bridge 7 August 2007Quattro (debottle neck) December 2007Design and replacement of Terminal Control Systems (TCS) 2008Spoornet Development – relocation of carriage and wagon facility December 2007

All major contracts have been placed, withBatemans appointed as the managing contractoron an Engineer, Procure and Construction (EPC)contract basis.

Approximately 80% of goods and services requiredfor the Phase V project will be sourced from SouthAfrican suppliers. In line with our procurementpolicy, BEE procurement will be a high priority.

Safety is paramount at RBCT. A safety programmedesigned by Batemans and managed by theirappointed Safety Manager is currently beingimplemented to all subcontractors to ensure theongoing adherence to OHSAS 18001 as well asthe safety, health and environmental policies setby RBCT.

15

ACTUAL % Male Female Total EE Total

EE statistics by band African Coloured Indian White African Coloured Indian White employees Females

E&F Band 38% 13% 0% 50% 0% 0% 0% 0% 50% 0%

DU Band 5% 0% 15% 65% 0% 0% 0% 15% 35% 15%

DL Band 16% 2% 27% 45% 2% 0% 0% 8% 55% 10%

C Band 35% 1% 14% 33% 4% 0% 3% 10% 67% 17%

B Band 73% 0% 2% 11% 5% 0% 2% 6% 89% 13%

Trainees 63% 0% 13% 19% 0% 0% 0% 6% 81% 6%

Plant Trainees 38% 0% 8% 31% 23% 0% 0% 0% 69% 23%

17 18

The people who work for RBCT are the foundation of our success. We have undertaken many initiativesto create value and are committed to attracting and retaining the necessary skills and talent tocreate and sustain value for all our stakeholders.

Employment EquityEqual opportunity and fair treatment have been the cornerstones of RBCT’s human resources practicesfor decades. A strong employment equity culture has been entrenched at RBCT and well documentedtargets are in place to ensure equitable representation in all occupational categories and levels inthe workplace.

Diversity Management Programme (DMP)RBCT nurtures a climate that encouragesemployees to develop their full potential in a moreparticipative environment. Adopted as acompany strategic project in 2003, DiversityManagement promotes a culture of valuingdiversity as a business imperative.

RBCT’s Diversity Management Plan, managed byour Diversity Task Team, has been very effectivein leveraging diversity to promote productivityimprovements and operational efficiencies in allparts of the business.

Labour RelationsAt RBCT, we have an ongoing focus onmaintaining positive and open industrial relations.Our philosophy of social partnership with the tradeunion movement has delivered a constructiveand cooperative industrial relations climateunderpinned by a shared and common sense ofpurpose on RBCT’s strategic vision to be a greatcompany. Consultative structures in the variousdepartments handle issues that affect employeesdirectly and significantly. These structures,established with trade unions and other employeerepresentatives, support constructive dialogue,information sharing and conflict resolutions.

A milestone for 2006 was the signing of a jointrecognition agreement between the South AfricanTransport and Allied Workers Union (SATAWU) andSolidarity. This agreement not only enhances theoverall trust between RBCT and the trade unionscollectively, but with one bargaining unit, whichis shared by both trade unions, negotiations areeasier to manage.

Deloitte “Best Company toWork For” SurveyIn 2006, RBCT participated for the first time in theDeloitte’s “Best Company to Work For” annualsurvey. The “Best Company to Work For” survey isan external survey that measures many aspectsof the workplace and experience of employees.By being placed in the top 100 companies towork for, this has given RBCT an opportunity togain external verification and acknowledgementfor the work we are doing. It also benchmarks usagainst other leading South African organisations.

Development Team MissionTo enable and sustain optimal peopleperformance by providing a reliable, efficientand continuously improving training anddevelopment service to our customers.

Training and Development PolicyOur overall goal of training and development atRBCT is to ensure that our people have the correctskills, knowledge, motivation and alignment toperform optimally in support of the company’svision and objectives.

Superior performance is key to success in achallenging business environment. Programmesare in place in all divisions as part of RBCT’scompany-wide commitment to attract, developand retain valuable skills.

Our focus is to facilitate continuous operationalimprovement through the development ofintellectual capacity. It is our aim to provideeveryone in RBCT with an environment in whichthey can flourish based on well-defined anddeveloped competencies.

Our process offers employees clear purpose androles that will develop knowledge, skills andattributes in a focused way and provides clearobjectives that can be linked to the concept ofreward for performance.

Staff DevelopmentA clearly defined career path for each positionguides the training and development plans forall employees. RBCT’s career developmentstrategies include Performance and TalentManagement, Management DevelopmentProgramme (MDP), supervisory and leadershipdevelopment, Employee DevelopmentProgramme (EDP), operator training, technicaland general skills development of shop flooremployees. The implementation of coaching andmentoring processes is on-going.

Our investment in skills development at RBCT wasevident with the recovery of 143% of the skills levyand discretionary grants from Transport EducationTraining Authority (TETA). 53% of courses run atRBCT in 2006 were SETA accredited against a TETAtarget of 20%.

Performance and Talent ManagementSuperior performance is key to success in achallenging business environment and indemonstrating commitment to employeedevelopment, a Performance Managementsystem is in place. Development plans form a vitalpart of the process and are linked to ourworkplace skills plans.

In addition, Talent Management which wasinitiated during 2006, has been linked toPerformance Management to identify talent froma pool of ambitious and driven individuals whohave the potential to take on more complex rolesand responsibilities. RBCT continuously identifiescompetency gaps and individual training anddevelopment needs to ensure that action plansare implemented to address these needs.

Team LeadershipA team leadership module was initiated in 2006.Designed for line management, this trainingmodule will be implemented during 2007, with abroad focus on coaching, decision making,communications, performance managementand conflict arising from changes in theworkplace.

Management Development Programme(MDP)The MDP is an intensive training programme aimedat creating critical management capacityamongst our employees. The main aim is to bridgegaps in previous qualifications and to addressthose who do not have any formal qualification,in particular in management science. Theprogramme covers Strategy implementation,Operations and supply chain management,Marketing and information management,Mobilising people, Financial and managementaccounting and Economics for business.

Mission Directed Work TeamsThrough our Mission Directed Work Teams, wecontinue to excel in a highly competitive businessenvironment. The concept of Mission DirectedWork Teams was introduced at RBCT in 1998, withthe programme effectively empoweringemployees and thereby creating a sense ofownership and responsibility through core trainingmodules which incorporate: Mini-Business GoalAlignment, Team Coaching, Self Developmentand Team Leadership. The success of thisprogramme is best illustrated by the last teamaudits in 2006 which indicated that out of 37accredited MDW Teams, 25 of them achieved“World Class Status” with scores of 100%.

19 20

Adult Basic Education and Training(ABET)Championed by our Executive Chairman, KuseniDlamini, RBCT initiated the ABET programme foradults who want to improve their basic education.

This outcomes-based programme provideslearning tools, knowledge and skills to ensure thateach and every employee has at least a Level 4Adult English Literacy Level (equivalent to Grade9) by 2011.

Employees selected for this programme are givena three-month leave of absence from theirworkplace, to enable them to attend the ABETclasses full-time, and to make the most of theirlearning experience.

Employee Development Programme(EDP)This custom-designed EDP programme is aimedmain ly at employees f rom previous lydisadvantaged groups. Approximately 15employees with development potential areidentified annually to participate in thisprogramme, which includes the corecompetencies required by employees makingthe transition to management or supervisorypositions.

21 22

Education Assistance ProgrammeEmployees have access to funding for part-timetertiary education through our EducationAssistance Programme where RBCT pays for tuitionand employees are only required to pay backfor subjects that they do not pass. This is done inorder to encourage employees to improve theirknowledge and skills related to their field of workand prepare themselves for the next step in theircareers.

Apprenticeships and TraineeshipsExcellent work continues in the area of technicaltraining. At RBCT we have an apprenticeshipsystem registered with the ManufacturingEngineering and Related Services SectorEducation and Training Authority (MERSETA) inplace. With 18 apprentices, RBCT has budgetedfor a total of 28 trainees. In addition, we havefour learners of which two are disabled on thesecond year of a Business AdministrationLearnership.

Training AccreditationIn addition to being accredited with the MERSETAfor on site training of Millwrights and BoilermakerApprentices, RBCT is also a fully accredited trainingprovider with the TETA for operations trainingcourses that include the shiploader, bulldozer andtippler courses. All trainees who undergo thistraining can have their credits registered on theNational Learner Record Database. We arecurrently busy registering training programmes onthe Stacker Reclaimer and Rail Courses whereunit standards exist. We are also partaking in thedevelopment and updating of unit standardswhere required.

We are currently working towards the registrationof a certificate in coal handling (plant operationand supervision) and we aim to register two skillsprogrammes during 2007 that will culminate inthis certificate once registered as a nationalqualification.

BursariesBursaries are provided by RBCT to assist withsourcing and developing bright young talent inanticipation of meeting our future skil lsrequirements. We currently sponsor 10 bursars.The total spend on bursaries is R422 000 per annum.

Bursars are selected on merit with 80% of bursariesawarded to previously disadvantages persons,to obtain a tertiary qualification in various fieldsof study at recognised tertiary educationalinstitutions. Each bursar has a dedicated mentorto add practical experience to academicknowledge in order to fully prepare them for thebusiness world.

Study GrantsEach year, RBCT offers 10 study grants toemployees’ children who are registered to studyat a recognised tertiary institution - with five ofthe grants focused on school leavers and five oncontinued education. The grants are limited toone per family and applicants are selected basedon defined criteria.

23 24

Health and Safety

Safety is paramount at RBCT. It is our primary andcontinuing policy to conduct our activities in sucha way so as to protect the health and safety ofour employees and others who may be affectedby our activities.

RBCT’s Safety, Health and EnvironmentDepartment, managed by qualified staff ensurethe ongoing adherence to stringent safetystandards, evident in our achievement of theNational Occupational Safety Association’s(NOSA) 5 star status from 1989 to 1996, NOSCARstatus from 1997 to 2004 and recently ourcertification to the internationally recognisedOccupational Health and Safety Assessment Series(OHSAS) 18001, which has set the standard forsafety during the implementation of the Phase VExpansion Project.

Formal joint health and safety committees,comprising management, the workforce andunions meet regularly ensuring consultation withall relevant stakeholders concerning all mattersrelating to health and safety in the workplace.

During 2006, an improved focus on behaviouralsafety and involvement of all employees throughmonthly sectional SHE meetings resulted in areduction in the number of injuries, with threedisabling injuries occurring during the year

HIV/AIDS

Acutely aware of the significant impactthe HIV/AIDS pandemic has on our

employees and the communities in which weoperate, RBCT is committed to working towardshalting the further spread of the disease andcaring for those who are infected. As part of thiscommitment RBCT, has a well-defined HIV/AIDSPolicy which covers other life-threatening diseases,with the purpose of:

· Providing the company with clear guidelineswhen deal ing wi th the pandemic;

· Ensuring that all employees have anunderstanding of their rights regardingHIV/AIDS;

· Ensuring the fair and consistent treatment ofemployees;

· Creating an environment that is conducive todisclosure without fear, rejection ordiscrimination;

· Creating awareness, educating and informingemployees on HIV/AIDS issues; and

· Ensuring stability and productivity in theworkplace.

Over the past years we have embarked on aninitiative to promote the knowledge of employeeHIV status. RBCT’s employees are encouragedto know their HIV status through confidentialvoluntary counselling and testing.

Environment

Sound environmental practices are anindispensable part of RBCT’s approach to ouroperations, and we recognise that environmentalmanagement is of a high priority and a key factorin ensuring sustainable development. Thebackbone of our environmental approach is ourISO 14001 (Environmental Management System)certification, which we maintained for the fourthconsecutive year.

RBCT has also implemented some initiativesdesigned to minimise any direct negative impacton the surrounding areas in the daily operationsof the terminal:

· Several dust abatement mechanisms are inoperation, including numerous computer-controlled water sprays. Information suppliedby the SA Weather Bureau assists RBCT to usethis system effectively, alerting the controltower prior to any high velocity winds reachingthe area.

· 20 Settling ponds are positioned at strategicpoints to collect run-off water, allowingsuspended coal particles to settle, thuspreventing them from entering the harbour.Boreholes are spaced throughout the terminalto monitor the quality of ground water.

· Over 5 000 trees and shrubs have been plantedon site to reduce the effect of wind andimprove aesthetics.

· Road sweepers and a water tanker run on aconstant cycle to keep roads free of dust.

· The Environmental Systems Upgrade (ESUP)comprising the construction of two 40 megalitre catchment dams, modification of settlingponds, installing and linking the pumpingsystem to existing settling ponds is underconstruction and the target completion dateis March 2009.

Dolphins are regularly seen alongside the coalquay and a flourishing marine reserve exists onRBCT’s doorstep – home to pelicans, flamingos,fish eagles, waders, crabs and a host of other birdand marine life. An area within this reserve hasbeen identified as a possible National HeritageSite, bearing testimony to the health of thesurrounding natural environment.

With constant awareness and respect for theconservation of our environment, RBCTcommissioned Annergan Environmental Researchto conduct an environmental study on the impactof coal dust at the Zululand Yacht Club in theRichards Bay Small Craft Marina. Results indicatedthat RBCT was one of the contributing dust factorsat the Yacht Club. RBCT has initiated discussionswith Richards Bay Clean Air Association (RBCAA)with the intention of having Burkard Pollen Samplerinstalled to accurately monitor the sources anddust deposited at the Yacht Club during 2007.

RBCT aims to have a safety, health and environmental systemwhich complies with international best practice. To this endRBCT is committed to:

· Complying with current national, provincial and localsafety, health and environmental laws as well as relevantinternationally recognised standards and codes.

· Complying with internationally recognised standards, codesand other requirements adopted.

· Preventing accidents, injuries and environmental pollutionby following approved work methods and systems.

· Conserving and protecting the country’s natural resources.· Formulating safety, health & environmental objectives and

targets and periodically review these.· Informing suppliers and interested and affected parties

about our safety, health & environmental policy.· Requiring that all suppliers, contractors and other personnel

on site comply with SHE legislated requirements, SHE policy,codes and standards to which RBCT subscribes.

· Involving and training all employees in safety, health andenvironmental management.

· Continuously striving to improve our safety, health andenvironmental performance.

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Trees for LifeRBCT currently sponsors more than 300 learnersidentified from the Dube and Esikhawini areas toparticipate in the Indigenous Trees for Life projectwhich is run by the Wildlands Conservation Trust.The focus of this project is to give underprivilegedpeople, particularly orphaned children, the abilityto literally grow their own money, and with it afuture.

The young entrepreneurs are provided with basictraining in the propagation of indigenous trees.They then collect seeds from their local areas andpropagate them, nurturing them until they arelarge enough to be sold. Wildlands ConservationTrust buys the trees back from the learners andsells them to various greening projects aroundthe province. The young entrepreneurs are paidin cash per tree or barter the trees for a varietyof goods such as food, clothes or even bicycles.

RBCT is committed to forming and maintaining mutually beneficial value adding partnerships with thepeople and communities around our operation. At the core of this are initiatives aimed at improvingthe quality of life in the communities within which our people live. Over the past few years, RBCT’sapproach to CSI has shifted towards a philosophy that is fully accountable and geared towardsproviding sustainable solutions based on partnerships with our communities. The success of thisphilosophy hinges on the recognition that any social involvement should make a meaningfulimprovement to the lives of the people and communities that it is designed to benefit.

Through our CSI Committee, consisting of volunteers from all levels within the company, as well asunion and employee representatives, we aim to promote the development of self-reliant communitiesand to facilitate community development programmes. Our initiatives primarily focus on education,health, HIV/AIDS, community skills upliftment, welfare, environment, community service and crimeprevention.

RBCT’s CSI Investment

Community ServiceCrime PreventionEducationEnvironmentalOtherSkills DevelopmentSportWelfareWelfare/ Education

21%

1% 5% 3% 14%

10%

42%

2%

2%

Our relationship with our local community has been substantially boosted by various social involvementinitiatives:

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Ntabeni Primary SchoolRBCT has been involved with Ntabeni PrimarySchool since 2001. The school commenced in2000 with lessons being conducted under a treeby a single teacher seconded from aneighbouring school. Today, the school has grownto a 10 classroom school with an administrationbuilding, ablutions, a container library stockedwith books donated by RBCT employees and aconcrete courtyard with 10 full-time staff membersincluding a principal paid for by the Departmentof Education.

RBCT will be embarking on the next phase of thisproject during 2007 with the building of anadditional classroom and converting an existingstoreroom into a kitchen for the food provisionprogramme at the school.

Swana School and Assessment CentreIn 2005, Swana School and Assessment Centrewas started in a house in Empangeni as a non-profit organization catering for nine children withspecial learning needs. Children who attendSwana School are neither mentally retarded norable to cope with the pace in a mainstreamschool and need a high level of support. Thereis currently no other school in the area that catersfor their needs, the only other option is to stay athome. Today, with a staff of seven, Swana Schoolprovides holistic education and therapy to 20learners, with 27 children on the waiting list.

RBCT assisted founder Nomakhaya Swana withregistering the school with the Department ofEducation. Land has been identified for a newschool to be built in Empangeni, with RBCT as themain funder for this project.

The school also functions as an Assessment Centrefor all learners with special educational needs inthe Zululand area.

Amangwe CrècheRBCT has committed R1 million since 2003 to thecreation of infrastructure at Amangwe Villageincluding the support of a fully equipped crècheat Amangwe Village catering for children affectedby HIV/AIDS. A flagship initiative of RBCT, theCrèche has grown since it first opened its doorsto 16 orphaned and vulnerable children in January2004. In January 2005, the Crèche’s capacity

increased to 32 children with the introduction ofa Grade R class in 2006, the capacity increasedto 40 children.

During 2006, RBCT donated an additionalR100 000 to be used towards the operational costsfor the Crèche.

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University of Zululand (Unizul) ScienceCentreThe Unizul Science Centre, a well equipped centrewith interactive science exhibit aims to stimulatean interest in science amongst secondary learners,thereby channelling science learners intotechnological careers. The centre utilises exhibitsto explain otherwise complex scientific conceptsto learners in a more relaxed and interactivemode.

During 2006, RBCT supported the Unizul Centrethrough a donation to refurbish the auditoriumwhich had seen some 250 000 visitors, mainlyschool children from rural schools who have verylimited exposure to science. New lighting, a state-of-the-art data projector and improvements toseating, as well as a repaint and general spruce-up have rejuvenated the auditor ium.

Business Against Crime (BAC)RBCT is a member of the Zululand division ofBusiness Against Crime and has aligned itself withthe need for businesses to support the SAPS andjustice system in its fight against crime. TheEsikhawini Police Station was adopted by RBCTin terms of the National SAPS Service DeliveryImprovement Programme (SDIP) initiative.

During 2006, R300 000 was donated towards theCCTV project that aims to coordinate efforts ofboth local industry and the SAPS in fighting crimein the area.

Nseleni Skills CentreThe Nseleni Skills Centre run by the UmfoloziCollege provides welding, building and sewingtraining for unemployed people in the area.

RBCT supports Government’s Joint Initiative onPriority Skills Acquisition (JIPSA), aimed at increasingthe quality and quantity of skills in South Africa.

Community Bursaries andEnvironmental LearnershipsOur development programme alsorecognises the need to develop keycommunity based skills. Our focus is onthe development of Maths and Scienceteachers along with nursing staff.

In addition to this, RBCT has securedfunding from TETA for 20 learners tocomplete their certificate in conservationbased Tourism Guiding Learners Level 4,facilitated by Wildlands Conservation Trust.RBCT has sponsored an additionallearnership in Environmental Education level4 facilitated by the Endangered Wildlife Trust.

Currently 18 of the learners have beenemployed locally by Birdlife SA, University ofZululand Science Centre, KZN EzemveloWildlife and Wildlands Conservation Trust.

A number of our employees are involved in variouswelfare and community organisations, giving uptheir t ime and sharing their expert ise:

RBCT Relay RunA highlight on the athletics calendar and withouta doubt the biggest sporting event in Zululand,the annual RBCT Relay Run commemorated its22nd anniversary in 2006. The charity run attractsmore than 2 000 runners and walkers and some7 000 spectators annually. Approximately 80 RBCTemployees volunteer their time to help make thisevent a success. The proceeds raised from theevent go towards deserving charities involved inthe event.

Organisations that benefited in 2006 are: SPCA,Thuthukani Special School, NSRI, SA ScoutAssociation and Richards Bay Family Care.

National Sea Rescue Institute (NSRI)RBCT has had a longstanding relationship withthe National Sea Rescue Institute (NSRI) and hasbeen the main sponsor of the local station since1976. A non-profit organisation, NSRI’s crewconsists of unpaid volunteers, including RBCTemployees, who devote their spare time andenergy to saving lives in South African waters.

In 1986, RBCT together with Alusaf (now knownas BHP Billiton) donated a brand new LochinMarine 38ft deep-sea rescue craft known as “TheSpirit of Richards Bay”, which is still the flagship ofthe NSRI's fleet in South Africa.

The building of a new base aimed at extendingthe life of “The Spirit of Richards Bay” is underway,RBCT has donated R550 000 towards the cost ofthis project.

World Cup TriathlonFor the first time in Africa, Richards Bay playedhost to the World Cup Triathlon event in 2006.With 500 participants bringing thousands of visitorsto the area, RBCT was one of the official sponsorsof this prestigious event. RBCT in addition to afinancial donation, assisted with the arrangementsand logistics of this event.

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Thuthukani Special SchoolThuthukani Special School situated on the outskirtsof Empangeni caters for educational needs of285 mentally handicapped learners. The mainfocus of the programme is to ensure that thechildren become as independent as possible sothat they would be able to play a contributingrole in society as adults.

RBCT is proud to be associated with ThuthukaniSpecial School and our aim is to ensure qualityeducation and the holistic development of thechildren. We also would like to see that the learnersare afforded the opportunity to participate andexcel in areas such as sport, dancing, singing,etc.

Siyabonga ShelterThe House of Shalom, an interdenominationalorganisation is the umbrella organisation for anumber of projects including the SiyabongaShelter.

Siyabonga Shelter is a place of refuge forabandoned, abused and neglected children,rehabilitation of street children, and the caringfor children with HIV/AIDS. The shelter provides amore positive lifestyle for these children.

SPCA Richards Bay and EmpangeniThe Society for the Prevention of Cruelty to Animals(SPCA) has a committee, made up solely ofvolunteers. The committee employs eight full-timeworkers and the branch is completely reliant onfinancial support.

RBCT together with BHP Billiton donated funds toallow for the revamping of existing kennels andconstruction of a new kennel block toaccommodate boarders; the existing small catteryhas been upgraded and a new cattery, clinic,stable and a bathing and dipping area haverecently been completed. The new boardingfacilities will assist in the society's goal of becomingself-supporting.

The Richards Bay and EmpangeniFamily CareFamily Care is a voluntary, community based,non-profit, governmental organisation with a visionto promote and protect the interests anddevelopment of children in a family context.Family Care provides comprehensive servicesincluding foster care, children's courts, abusedchildren, marriage problems, substance abuse,victims of crime, material needs and a Feed theBabies Fund.

Red CrossThe South African Red Cross Society is an impartial,neutral and independent organisation with a coremission to identify, prevent and alleviate humansuffering and foster human dignity in allcommunities.

SANCAThe South African National Council on Alcoholismand Drug Dependence (SANCA) is a non-governmental organisation whose majorobjectives are the prevention and treatment ofalcohol and other drug dependence.

Zululand Mental Health SocietyThe Zululand Mental Health Society is a Non ProfitOrganisation providing advice, counselling andsupport for preventative and rehabilitative aspectsof mental illness, mental handicap and disabilities.Protective workshops and self help groups areheld for the mentally handicapped where theyare equipped with skills with the view to earningan income and enhancing quality of life.

Zululand HospiceZululand Hospice provides palliative care forpatients with progressive diseases as well asbereavement support for their famil ies.