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Risk Management Framework

Risk Management Framework

Mototolo Platinum Mine – MPLATS ENTERPRISE (PTY) LTD

1. Purpose

This framework establishes the principles, structure, and processes for identifying, assessing, mitigating, and monitoring risks across all operations of Mototolo Platinum Mine. It aims to ensure informed decision-making and long-term sustainability through proactive risk management.

2. Scope

Applicable to all business units, departments, contractors, and operational sites of Mototolo Platinum Mine, covering:

  • Operational Risk

  • Financial Risk

  • Environmental & Safety Risk

  • Legal & Compliance Risk

  • Strategic & Reputational Risk

  • HAZMAT / Supply Chain & Fuel Logistics Risk

3. Objectives

  • Promote a risk-aware culture across all levels

  • Enable early detection and response to threats

  • Safeguard assets, personnel, and community

  • Enhance compliance with legislation (e.g., MHSA, NEMA, HAZCHEM regulations)

  • Support strategic goals of Valterra Platinum

4. Risk Management Principles

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  • Value creation and protection

  • Integration into governance and operations

  • Structured, timely, and systematic

  • Dynamic and responsive to change

  • Transparent and inclusive

  • Customised to the business environment

5. Risk Categories

Category Examples
Operational Equipment failure, safety incidents, production loss
Financial Budget overrun, fuel price volatility, payment delays
Environmental Contamination, emissions, rehabilitation failure
Health & Safety Accidents, non-compliance with Zero Harm policies
Regulatory & Legal Mining license breach, HAZMAT transport violations
Reputational Community protest, media scandal, ESG failure
Strategic Loss of key markets, merger impacts, project failure

6. Risk Management Process

Step 1: Risk Identification

All departments must systematically identify risks relevant to their operations. Tools include:

  • Site inspections

  • Audit reports

  • Incident records

  • SWOT analysis

  • Community feedback

Step 2: Risk Assessment

Risks are assessed based on:

  • Likelihood (1–5 scale: Rare to Almost Certain)

  • Impact (1–5 scale: Insignificant to Catastrophic)

A Risk Matrix (Heat Map) determines the risk level (Low, Medium, High, Extreme).

Step 3: Risk Mitigation

Each identified risk must have a mitigation plan using the following hierarchy:

  • Eliminates

  • Substitution

  • Engineering Controls

  • Administrative

  • PPE

Step 4: Monitoring & Reporting

All high and extreme risks are reviewed monthly by the HSE and Risk Committees. A company-wide risk register is maintained and updated quarterly.

Step 5: Communication & Training

Risk awareness is integrated into:

  • Induction and onboarding

  • Safety meetings and toolbox talks

  • Annual HSE Week and training refreshers

7. Roles & Responsibilities

Role Responsibility
General Manager Overall accountability for risk governance
Risk Officer / HSE Head Maintain risk register, drive risk assessments
Department Managers Implement controls in their areas
Employees and Contractors Report hazards and adhere to protocols

8. Key Tools & Documents

  • Corporate Risk Register

  • Risk Assessment Templates

  • Incident Reporting Forms

  • Emergency Response Plan

  • Risk Escalation Protocol

9. Escalation Protocol

Risk Level Escalation
Low Managed within department
Medium Reported to HSE Manager
High Reviewed by Executive Committee
Extreme Immediate action + Board report

10. Review & Audit

  • Bi-annual internal audits of risk controls

  • Annual management review of risk framework

  • Compliance checks with ISO, MHSA, and environmental regulations

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