EVRAZ

Working with the communities in which we operate is critical to our success and an important element of our overall responsibility. We have a policy of recruiting local people wherever possible and therefore generate employment opportunities in these communities, both in our operations and indirectly through local supporting activities. We regularly meet with local authorities to discuss issues of mutual interest and we like to take an active role in supporting local needs and initiatives.

EVRAZ is passionate about making direct and relevant contributions to the social fabric of the communities in which the Company operates and where our employees live and work. We are proud of our reputation as a distinctive corporate citizen.

EVRAZ’s community related programmes are regulated by the Company’s Social Investment Guidelines. The Company’s investment priorities are as follows:

• Youth: initiatives and projects which assist in the development of young people;
• Education: enabling individuals of all ages to acquire knowledge, abilities and skills; and
• Citizenship: fostering favourable neighbourhood values and safe environments in local communities.

In accordance with customary international business practice, assistance is provided through charitable foundations established by the Company and managed by local Supervisory Boards. EVRAZ Charity Funds operate in Russia (Siberia and the Urals) and the Czech Republic. EVRAZ’s community contributions in Russia amounted to approximately US$16.7 million (RUB481.3 million) in 2010, the primary consideration being the improvement of living conditions in the towns where EVRAZ’s subsidiaries are located. Investments encompassed several national and civil projects, various youth programmes, support for infant schools and local educational institutions, the construction of sports grounds and the widespread encouragement of sport, educational and cultural activities.

The EVRAZ Charity Fund in the Czech Republic was established in 2006 and supports the long-term development of the Moravian-Silesian region. Donations totalled US$514,000 (CZK9 million) during 2010 with funds directed towards medical, educational and psychological support for children suffering from ill health with a special focus on children suffering from cerebral palsy.

In 2010 EVRAZ formed the EVRAZ eMalahleni Community Forum for the specific purpose of investing in South Africa’s economic transformation. This project, which is designed to benefit the most vulnerable members of the communities within which EVRAZ Highveld operates, will primarily focus on social development, education and health. During 2010 EVRAZ’s social investments in South Africa amounted to $230,000 (ZAR1.63 million).

Total sponsorships and charitable contributions on behalf of EVRAZ in North America totalled US$992,837 in 2010.
In Canada, EVRAZ enjoys a long standing relationship with The United Way – a non-profit volunteer-based organisation that addresses community issues and problems and works towards creating a more favourable environment. EVRAZ also funds various educational programmes together with projects that promote healthy lifestyles among young people. Among its support for community programs in Canada, EVRAZ is an active supporter of Canadian Cancer Society Relay For Life and several chapters of the Association for Community Living – volunteer based groups dedicated to improving the lives of less-fortunate members of their communities.

In the United States EVRAZ supports regional Red Cross programmes, local scouting activities and also community efforts that lend support to under-privileged children and families. In 2010, EVRAZ also partnered with local law enforcement agencies, civic and elected leaders, local businesses and neighbourhood organisations in various campaigns designed to raise awareness about crime and drug prevention and causes to encourage community involvement.

Transformation in South Africa

The South African Administration’s ‘Transformation’ agenda complements many of EVRAZ’s core values, not least in relation to the development of local communities and issues of equality. Under the project, the corporate structure of EVRAZ Highveld will be required to reflect the country’s demographics, while management must ensure that the principles associated with the initiative are realised in the communities that come within the region of the Corporation’s operations. In 2011 EVRAZ Highveld achieved a Level 5 Contributor status. The Company intends to improve the status going forward. 

The scale of the project reflects the Administration’s focus on the economic empowerment of communities, in social and business terms, through various State schemes encompassing education, health, housing and supply chain initiatives.

Against this background a fully-fledged ‘Transformation’ division, focused on the development of Broad-Based Black Economic Empowerment (B-BBEE) and the implications of the Administration’s new Mining Charter, will come into operation at EVRAZ Highveld in 2011. The new division will facilitate refinements to the Corporation’s ‘Transformation’ strategy and enhanced monitoring of performance against targets in relation to such strategy.