Economic Empowerment

The Department of Mineral Resources awarded Foskor three new mining licence's in September 2009 and approved the company's economic impact assessments and environmental management plans for the Pyroxenite Expansion Project. Foskor has been issued with all conversions of its old order mining rights into new order rights in terms of the Minerals and Petroleum Resources Development Act (No. 28 of 2002). The new mine, the South Pyroxenite pit, has been operational since September 2009. We have pending changes to be made to the existing rights to include the additional minerals that we have applied for.

Local Economic Development

Local Economic Development (LED) is a government-driven economic growth initiative that encourages locals to pool resources with municipalities and alleviate poverty. LED was designed to seek growth and employment creation opportunities. By definition, a successful LED programme is one that is aligned to national policy, strategy and guidelines. It provides direct and hands-on support to provincial and local government structures and outlines the management of the LED Fund used to offer technical support to nodal economic development planners. LED is also a useful tool for coordinating and monitoring donor programmes and for building capacity processes and infrastructure in the local communities.​

An Integrated Development Plan (IDP) is a process whereby municipalities prepare five-year strategic plans, reviewed annually, in consultation with communities and other stakeholders. These plans strive to promote integration by balancing social, economic and ecological pillars of sustainability without compromising the government's institutional capacity.

The Ba-Phalaborwa Municipality and Foskor have completed the committed four projects valued at an excess of  R26.5 million over the period September 2009 to August 2014, as per the 2009/10 IDP. The completed projects are:​

  • The paving brickmaking entrepreneurial development centre;
  • Rehabilitating streets in Phalaborwa;
  • Rehabilitation of landfill site in Lulekani; and​​
  • Upgrading the sports precinct in Lulekani; 

The brickmaking project is currently employing 12 permanent people directly and there are other indirect job opportunities created through suppliers of other services to the establishment and this is one of the successful stories that are witnessed in the area.

The existing tarred streets in Phalaborwa were in a grim state and in urgently needed to be fixed. The streets in the central business district which accommodate high traffic volumes running to different routes and local hubs are now in an immaculate condition.

The people of Lulekani are now enjoying the inherent benefits from the rehabilitated landfill site in the residential area of Lulekani. The residential area grew towards the old landfill site hence the need to rehabilitate the area.

The Lulekani sports precinct was aimed at improving the level of sports participation in the local communities and it was critical that the communities should have access to facilities that are of a state of a higher quality. It is exciting to see the high level of sports participation in this area more especially on the side of the youth.

From September 2014 to August 2019 we are expected as per our commitment through the Social and Labour Plan to ensure that we spend a total of R 35 million on the following 4 projects:

  • Upgrading and Refurbishment of Electricity Network in Phalaborwa
  • Establishment of a new Landfill Site
  • Rehabilitation of streets in Ba-Phalaborwa
  • Construction of Makatikele Primary School

Specific commitments from Foskor with regard to these Local Economic Development interventions are discussed below. There are also a number of other areas where Foskor assists the local government by virtue of the equipment and skills that are available within the company.

Ba-Phalaborwa Local Municipality has experienced numerous network failures resulting in loss of electrical supply to large portions of the town for extended periods during the last few years. After a recent failure at the Selati 33/11kV Main Intake Substation, which resulted in a total power failure in the town of Phalaborwa, Foskor has decided to consult with the municipality in an attempt to turn the situation around. After consultation with the local stakeholders a survey was commissioned and funded by PMC and the NETGroup was able to produce a report that suggested an urgent upgrading and refurbishment of the electricity network more especially the replacement of the 30MVA transformer.

The people of Ba-Phalaborwa Municipality can enjoy the inherent benefits that can be found in the proper establishment of a new landfill site in the area Phalaborwa. Foskor has relinquished surface right 332/80 on farm Schiettocht measuring 50Ha of land for this purpose. Ba-Phalaborwa community in the spirit of creating a "no more waste" culture that is in support of the good initiatives of the World Summit for sustainable development has embraced the idea in the municipality's Integrated Development Plan.

Waste is produced daily in the Ba-Phalaborwa area and there is always a need for people to ensure that waste is managed properly from the creation point to the dumping point.

There is currently a need for the rehabilitation of the streets in the municipal jurisdiction of Ba-Phalaborwa. The condition of the existing tarred streets are so bad and need urgent rehabilitation.  This project will be handled with the spirit of the Expanded Public Works Programme that is aimed at alleviating poverty and at the same time providing income through temporary work for the unemployed community of Ba-Phalaborwa. These job opportunities are targeted to be available for the target group for a period of 4 years when this programme will be running.

The Department of Mineral Resources in paid us a courtesy visit for them to look at the LED projects and they finally advised us to look at relinquishing some funds from the rehabilitation of streets in favour of the construction of a legacy project in the form of constructing a school in the local area. The department has subsequently approved the application for the budget rearrangement. 

Empowering communities

The Corporate Social Investment teams in both divisions continue to be part of different initiatives in the host communities where we can make a positive impact. Our programmes are aimed at the improvement of the quality of the recipients through promotion of education, rural development, health and poverty alleviation as part of social development. The Community Trusts in Mining and Acid divisions continue to implement the identified community projects with the dividends as and when they are available.

Foskor believes in uplifting impoverished communities by providing the means to be self-sufficient.

CSI Acid Division (Richards Bay), provided widows, and female farmers with tools and seeds to cultivate their own gardens. These ladies work together to form agricultural cooperatives, they will sell their fresh produce to local retail markets to be self- sustainable and alleviate poverty.

Department of Arts and Culture, Foskor, and local skills centre formed partnership in supporting 10 disabled ladies from Mzingazi where they were trained and received certificates on bakery. The ladies will use their skills in bringing in a steady income to those wanting to start their own businesses and this will ensure that they are independent.

The under privileged youth from local community were given an opportunity to participate in a 20-day ceramic development training programme. Foskor, as part of corporate social investment focus, assisted the disabled beneficiaries with their transportation to and from the skills training centre. This youth also received their certificates at the end of the intensive training. This programme was to ensure that the neighbouring communities benefit and also able to be self- sustainable. After their training the youth will be able to market their products at relevant expos, trade fairs and on market days around Richards bay.


Phakgamang Re Tiišane is a non-profit organization initiated by retired nursing professionals who realized a need for continual care for patients who were discharged from Hospital for convalescence at home.

After consulting various stakeholders including Foskor, the idea was accepted. Then the Home Based Care became the extended arm of Health facilities as this type of service can reach out where the health service providers could not. The initiators managed to organize 25 unemployed people irrespective of gender to volunteer.

In 2013 Foskor adopted the initiative, provided office space which is utilized at no cost and donated medical equipment which include first aid kits, bath scales, accu checks, BP machines as well as adult disposable nappies, gloves, linen savers and many other supplies.  In 2015 Foskor equipped Phakgamang's office with a computer and a printer to assist them with their day to day duties.

In 2015 Foskor further assisted Phakgamang with a borehole to assist them with water for irrigation purposes so that out of their garden they can sell the vegetables for sustainability as well as feeding the caregivers' families. 


Foskor as a good corporate citizen of Ba-Phalaborwa had an opportunity to build a school and named it after its former MD, John Stanbury. Most of the houses in this area were built by Foskor for its employees and therefore the need for a school. The majority of the learners at this school are Foskor employees' dependants

Later on, Foskor adopted the school and its name was changed to Foskor Primary School. Foskor mine constructed additional four classrooms to ease overcrowding as well as to promote quality teaching and learning. This also encouraged increased participation and outstanding performance in Maths and Science to have a good base for the Dinaledi school.

In 2013 another block of four classrooms was built, and later an additional block of eight ablution facilities and a kitchen was also built.​


Mashavela Primary School is situated in the village of Majeje in Phalaborwa. The school received a mobile library from Foskor, which has a noticeable impact in the learners' reading skill as it motivates them to read. In the past this reading culture was seen to be for kids in townships and urban areas but Foskor has made it possible for Mashavela in the deep rural area to have such a facility. It was almost impossible to motivate learners to read because the nearest library is about 11 kilometres away which made it difficult for learners to utilise the facility. The dvd's included in the unit assist their foundation phase learners to learn while having fun and this has improved mostly their listening skill.


  • To ensure the efficient, effective and uniform procurement of all raw materials, services and goods, required for the proper functioning of the Foskor Group to maximize the benefits from its consolidated buying power in the market place whilst acting in a socially responsible manner in developing and supporting historically disadvantaged South Africans (HDSA), Broad-Based Black Economically Empowered Enterprises (BBBEE) and Small, Medium and Micro Enterprises (SMME's).
  • To ensure the efficient, effective and uniform disposal of assets and goods through the procurement process.
  • To ensure sustainable local economic development.



The Foskor Group is committed to applying the following legislative environment as it pertains to procurement

  1. Section 217 of the Constitution, Act 108 of 1996, as amended. In contracting for goods and services, the Foskor Group will use a system, which is fair, equitable, transparent, competitive and cost-effective, and which will be enhanced by preferential procurement principles.
  2. The Public Finance Management Act, Act 1 of 1999 as amended and the Treasury Regulations. In contracting for goods and services, the Accounting Authority will use a system which is fair, equitable, transparent, competitive and cost effective.
  3. The spirit of the Preferential Procurement Policy Framework Act, Act 5 of 2000. The preferential system will advance the interests of persons previously disadvantaged by unfair discrimination.
  4. The Broad-Based Black Economic Empowerment Bill. Economic transformation will be promoted through preferential procurement in order to enable meaningful participation of Black people in the economy.
  5. The Mining Charter. Promote Broad-Based Black Economic Empowerment through targeted preferential procurement.



The Foskor Group's Code of Ethics and guidelines shall direct all stakeholders in their conduct internally and externally in the Group. Non-compliance shall be subject to appropriate and firm action.

All stakeholders are required to promote an environment where business will be conducted in a fair and reasonable manner and with integrity.



The Foskor Group will treat the demand management or planning function as a cross-functional exercise that involves Procurement, Finance and user Departments.

The Foskor Group will perform a needs analysis annually involving cross-functional teams in order to determine the overall Procurement Strategy that will ultimately provide best value for money.

The Foskor Group will perform a needs analysis on a case-by-case basis as and when required involving cross-functional teams in order to determine the Procurement Strategy for the appropriate product or service that will ultimately provide best value for money.



  • Foskor shall conform to industry and government regulations and guidelines.
  • Foskor shall put in place supplier development programmes and evaluation processes.
  • Foskor will encourage its primary contractors to acquire some of their commodities and services from BBBEE suppliers where appropriate and favour those who are similarly committed to empowerment without compromising standards in any way.
  • Business units will align their targets in line with Foskor's BBBEE Policy
  • Business that performs "fronting practices" will be penalized in line with Foskor's BBBEE Policy.