RELIANCE ON KEY CAPITALS
GOVERNANCE AND LEADERSHIP
To contribute to a new, sustainable economic order in South Africa that reflects the demographic reality of our country and that addresses poverty, inequality, social injustice and racism.
Hulamin has played important roles in the Pietermaritzburg, KwaZulu-Natal, South and Southern African communities for close to eighty years. These roles includes transforming the regional (aluminium) economy, investment in the training, education and development of local human capital, growing the local and provincial supplier base and contributing significantly to the national balance of payments through the exports of large volumes of beneficiated aluminium products.
Over the past year Hulamin performed at record levels across a range of measures. These include profits, safety, production and sales volume and unit costs. While this progress is particularly pleasing, Hulamin has also made excellent progress in other important areas of transformation, human capacity and capability.
The Board continues to place great value on the transformational role for Hulamin in South Africa. To this end, the company has committed to a goal for transformation:
“To contribute to a new, sustainable economic order in South Africa that reflects the demographic reality of our country and that addresses poverty, inequality, social injustice and racism.”
Through the Transformation, Social and Ethics Committee, the Board of Directors oversees the implementation of this vision and the roadmap and plan that underpins it.
STRATEGY AND EXECUTION
The Board oversees an annual Hulamin strategic review and planning process. In 2016 the Board was satisfied that management had applied their minds to the evolving regional and global context for Hulamin and its stakeholders and how the business will need to respond.
In 2016, management presented a modified version of the 2013 five pillar strategic plan that caters for growth, investment, sustainability and improvement for all Hulamin stakeholders. The Board will continue to hold management accountable for its execution in 2017 and the years ahead.
Hulamin plays an important beneficiation role in the regional aluminium supply chain. The regional aluminium industry is supplied by the Hillside and Mozal aluminium smelters in Richards Bay and Maputo respectively. The technological benefits of aluminium creates value for manufacturers, fabricators and consumers in the packaging, building and construction, transport and automotive and other engineering industries in the region. Until a new long-term power supply contract is in place for the Hillside aluminium smelter, uncertainty will prevail, threatening investment, job creation and all other contributors to the sustainability of Hulamin and its stakeholders. The Board therefore encourages Eskom and South32 to reach agreement on the future supply of electricity to Hillside as soon as possible, to mitigate this serious risk to the sustainability of the industry. The Board has given guidance to management to allocate resources accordingly.
THE NATIONAL AND SOUTHERN AFRICAN CONTEXT
Being the largest beneficiator of aluminium in Africa, Hulamin has a great interest in the growth and progress of the aluminium and other manufacturing industries throughout the continent. The Board has provided strategic guidance in this regard and we are thus pleased with Hulamin engagements in Zimbabwe, Angola, Mozambique, Tanzania, Kenya, Malawi and Namibia.
In 2014 Hulamin brought in international management support to assist in uplifting performance in a range of operational areas. At the same time, the board has given management clear guidance of its zero tolerance for subjecting employees and other stakeholders to harm or injury while at work. The Board is therefore extremely pleased with the record and benchmark performance achieved in 2016. Hulamin achieved a Lost Time Injury Frequency (LTIFR) of 0.03 and a Total Recordable Case Frequency Rate of 0.27 in 2016. These indicators compare very favourably with best-in-class international benchmarks.
The board places great value on the development, growth and succession of Board members and management. Subsequent to the Hulamin listing in 2007, the tenure of a number of board members is approaching its end. The Hulamin board welcomed the appointment of Ms Boni Mehlomakulu, Mr Naran Maharajh and Mr Charles Boles in 2016 as part of the execution of its succession plans to ensure continuity and consistency as we prepare for the retirement of board members in the months and years ahead.
CONCLUSION AND OUTLOOK
The board is pleased with the improved business performance in 2016. With its focus on sustainable performance, transformation and execution of its strategic plans, with a particular focus on “building the assets of tomorrow”, Hulamin is well placed to progress its growth, improvement and investment momentum into the future. The board looks forward to a bright future for Hulamin, where the business meets and exceeds the reasonable expectations of all its stakeholders.
23 February 2017