Media Statement from John da Silva, CEO of the Cosira Group regarding the findings of an independent investigation into alleged misconduct at Unki Mine, Zimbabwe

15 April 2010

The Cosira Group has below issued a statement regarding the findings of an independent investigation and subsequent report, detailing alleged misconduct at Unki Platinum Mine in Zimbabwe.

Background

Cosira launched an immediate investigation after an article, published in the Bulawayo-based Sun newspaper on the December 18 2009, accused the Group’s management and employees doing construction work at the Mine, of bribery, sexual harassment and corruption.

The South African-based steel fabrication and construction solutions group has been contracted to execute the structural, mechanical, pipework and platework installation at the Unki Mine Concentrator, near Gweru on the Zimbabwean Dyke.

Statement

The appointed independent, accredited corporate consultants, Cealan, determined that four men employed by the Cosira Group’s sub-contractors were found to have behaved inappropriately and were guilty of misconduct. The range of misconduct and illegal activity included sexual harassment, bribery and corruption.

As such, the Group has instructed those companies contracted, to remove the employees implicated in these activities from site, with immediate effect. They have also requested that these companies after their own investigations are concluded and findings collaborated, that immediate and relevant disciplinary action be taken.

It must be noted that these individuals acted in their own private capacity, and that the Cosira Group and the Group’s management was not in any way involved in any misconduct, having upheld our core values of integrity, leadership and ethical conduct at all times. Furthermore, it was established that no management of the sub-contracted companies were implicated.

The Cosira Group sincerely apologises to those affected by the wrongful actions of our sub-contractors’ employees, as well as to our clients Unki Mine, Anglo Platinum and DRA.

We wish to reconfirm our commitment to our core values of ethics and integrity, and to say that at no time were any of these activities condoned or sanctioned by any management or executives of the company. We have taken the severest action possible in terms of our agreements with our sub-contractors.

The Cosira Group has consistently ensured transparency from the inception of the investigation; and will rectify any misconduct committed by sub-contractors immediately, ethically and with integrity.

It has always been of utmost importance to the Cosira Group to operate in a manner that reflects our core values, which include safety, pride, innovation, ethical leadership, excellence, commitment and integrity.

We are ensuring that the matter will be resolved fairly and speedily; and that we can continue with our crucial work in the region.