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Recommendation: We need to first conduct a proper due diligence to determine whether the offer
is in our shareholders’ best interest. If so, we need to not delay the process, and rather move quickly

to recommend acceptance to our shareholders; if not, we need to immediately enact a takeover
defense strategy, to protect our shareholders and employees (see B1 of this report).

B6.2 Black empowerment ‘window-dressing’

The Mineral Resources minister claims that we are involved in ‘window-dressing’; that is, paying leap
service to black empowerment and transformation and has gone further to suggest, unless we take
action, we will be met with unspecified sanctions. It appears to be a threat or bullying hence we

consider it unethical on the part of the government minister. But our out-going chairperson, with all
due respect, seems to validate the Ministers claim by suggesting that, ‘’it was inevitable that this
would happen –the government should be knowing that the business of business is business.’’
There is an inclined expectation that government should and can expect that its policies or laws will

not be followed. It cannot escape our assessment that the ‘Tone At The Top’ has been such that we
have perpetrated disingenuous or dishonest acts; such as structuring BEE deals that substantially
leave the HDSAs disempowered either by keeping them away from exercising their voting rights, or
keeps them so indebted that they never fully earn dividends form their holdings. At best, this is lack

of transparency for a reputed listed group such as ours, and at worse, it is an indictment of our
collective integrity and conscience! These clearly, are some of the concerns the minister is trying to
address in the recently released mining charter.

Recommendation: We need to investigate our black empowerment practices in order to determine
if, and to what extend we have been involved in window-dressing -taking corrective action, and
demonstrating to the government that we care about the principles and ethos of the mining charter.

We owe a duty, even whilst challenging the mining charter on strategic/commercial, or legal
grounds, to support the transformation of South Africa and assist uplift the HDSAs. It is also in our
long-term interest as good corporate citizens to do so, besides, there is substantial evidence that
good corporate social responsibility is good business! So, the business of business is not only
business, but good corporate citizenship!

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