Thesis (MBA)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: Severe flooding in Queensland, Australia in late 2010 and into February of 2011 resulted in significant losses to infrastructure, equipment and coal production. Xstrata Coal (XC) mines suffered billions of dollars worth of losses, resulting in insurance premiums increasing drastically in subsequent months. These events prompted Xstrata‟s top management to reconsider the way in which they managed risk. Initial revelations were that the focus of Risk Management had largely been on the areas of Health and Safety and that, particularly in South Africa, the outcome of all management‟s efforts to manage risk had been to comply with the relevant legislation. There was clearly an attempt to avoid litigation resulting in potential prosecution. The most stringent of this legislation was that of the Mine Health and Safety Act (No. 24 of 996), as promulgated by the Department of Mineral Resources. The requirements were prescriptive to the extent that mine management was required to utilise the Hazard Identification Risk Assessment process to identify hazards, assess the associated risk and apply mitigation, largely in order to prevent incidents which could affect the health and safety of employees. Little regard was given to the fact that mining houses could endure severe financial losses as a result of catastrophic events, which could stop production for significant periods of time. Whilst Xstrata did recognise Business Continuity Risk (BCR), the risk assessment process which was introduced along with the CURA risk register displayed a distinct division between Health and Safety Risk and BCR. Furthermore, this was not a systematic process. Initial risk categories were prescribed by XC mainly based on experiences in Australia. The floods prompted a rethink and Xstrata‟s prescription to conduct business continuity risk assessments (BCRAs) coincided perfectly with this writer‟s exposure to the Enterprise Risk Management Elective at the University of Stellenbosch‟s Business School. As the General Manager of the iMpunzi Complex that comprises three coalmines, it was the responsibility of the writer to carry out the instruction to review the business continuity process. Consequently, the research is intended to assess the current Risk Management environment within Xstrata Coal South Africa by means of an analysis of current documentation and interviews with select key personnel who largely influence and impact the management of risk in the company. Thereafter, the study will progress to the methodology involved in the Risk Assessments, followed by an assessment of the knowledge, skills and qualifications required for the relevant, accountable managers appointed to manage the risks. The findings of the research were that whilst there was quite a rigid framework, which was aligned with ISO 31000 principles for risk management, there were shortcomings in the methodology of the risk assessment process, as well as the considerations for dealing with latent or residual risk. To this extent, the writer recommended: A risk assessment template which prescribes, but is not limited to, the hazards which may be prevalent on a coal mine, including hazards specific to iMpunzi Complex; A revised template for the Risk Treatment Plan, which takes cognisance of Residual Risk; Other recommendations, which may deal with minor findings of the study.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: Xstrata Coal South Africa (XCSA) embarked on a restructuring exercise towards the end of 2005 to enable the organisation and its management to adapt to the pressures and requirements of an ever-changing South African coal industry. The executive team of XCSA felt that some of the business units were too large to be effectively managed by one general manager and his/her management team. The Tweefontein and Impunzi business units fell into this category. Further, the executive team felt that the existing organisational structures on the mines were unable to effectively manage the demands coming from an ever-changing coal industry. Most such demands emanated from sustainable development issues: workplace safety, environmental management, health-related concerns to do with the employees and community development around the mines. The restructuring took place towards the end of 2005, not long after the restructuring of the business performance went into decline. The author of this thesis, as the General Manager of the Tweefontein Complex from the beginning of 2006 until mid-2008, was responsible for the day-to-day management of the division at the time. After explaining the need for restructuring, as well as how the structure was changed, the author will describe a comprehensive literature research study. The aim of such a study is to create a common understanding with the reader of the principles relating to culture, leadership and change management. The author then compares the two climate assessments of the organisational culture of the Boschmans Colliery undertaken during 2005 prior to embarking on the restructuring exercise, and of the Tweefontein Complex undertaken during 2007, on completion of the restructuring. Boschmans Colliery employees now constitute most of the underground and surface operations areas of the Tweefontein Complex. The organisational culture of the Tweefontein Complex was found to have been influenced by the restructuring exercise. The author concludes with recommendations on how the organisational culture of XCSA as a whole could be aligned. Chief among the recommendations are that: • A cultural alignment programme should be implemented to create a common organisational culture across XCSA. • A leadership development programme should be implemented to promote the desired organisational culture. • A communication strategy should be implemented to support the cultural alignment programme. • A branding campaign should be launched to strengthen the image of XCSA within the surrounding community. / AFRIKAANSE OPSOMMING: Xstrata Coal South Africa (XCSA) het aan die einde van 2005 besluit om die besigheid te herstruktureer om aan te pas by die veranderende aard van die Suid-Afrikaanse steenkoolindustrie. Die gevoel van die uitvoerende komitee was dat sekere van die besigheidseenhede te groot was om effektief deur een algemene bestuurder, bestuur te word. Die Tweefontein- en Impunzi-besigheidseenhede het in die kategorie geval. Verder het die uitvoerende kommitee gevoel dat die bestaande bestuurstruktuur per myn nie voldoende was om al die verwagtinge vanuit 'n vinnig veranderende steenkoolindustrie effektief te kan bestuur nie. Die vernaamste verwagtinge van die vinnig veranderende industrie was die vanuit die veld van Volhoubaarheid, naamlik veiligheid op myne, omgewingsbewustheid, gesondheid van die werknemers, sowel as die opbou van die gemeenskap. Die herstrukturering het aan die einde van 2005 plaasgevind en nie lank na die herstrukturering nie het die prestasie van die besigheid drasties afgeneem. Die skrywer was die Algemene Bestuurder van die Tweefontein Complex vanaf die begin van 2006 tot die middel van 2008, en was verantwoordelik vir die dag-tot-dag-bestuur van die afdeling. As deel van die studie sal die skrywer eerstens poog om die redes vir die herstrukturering te gee en ook hoe die nuwe struktuur daar uitsien. Tweedens sal die skrywer 'n deeglike literatuurstudie verskaf om 'n gemeenskaplike verstandhouding tussen die skrywer en die leser oor die beginsels van kultuur, leierskap en veranderingsbestuur te skep. Derdens sal die skrywer die resultate van twee klimaatstudies ontleed wat op die besigheidskultuur van die Boschmans-steenkoolmyn in 2005 voor die herstrukturering gedoen is en een wat in 2007 op die Tweefontein Complex na die herstrukturering gedoen is. Die werknemers van die Boschmans-steenkoolmyn maak tans die grootste gedeelte van die Tweefontein Complex se ondergrondse en aanleg- en logistieke afdelings uit. Na aanleiding van die analise van die twee klimaatstudies, bevind die skrywer dat die herstrukturering 'n daadwerklike invloed op die kultuur van die Tweefontein Complex gehad het. Die skrywer maak dan na gelang van sy bevindinge aanbevelings oor hoe die kultuur van Xstrata Coal South Africa (XCSA) as 'n geheel belyn kan word. Sy belangrikste aanbevelings is as volg: • Die implementering van 'n kultuurbelyningsprogram om 'n gemeenskaplike besigheidskultuur regoor Xstrata Coal South Africa (XCSA) daar te stel. • Die implementering van 'n leierskapsontwikkelingsprogram wat belyn is met die verlangde besigheidskultuur. • Die implementering van 'n kommunikasiestrategie wat die kultuurbelyningsprogram ondersteun. • Die loodsing van 'n Xstrata Coal South Africa (XCSA) bemarkingsveldtog am Xstrata Coal se beeld in die gemeenskap te bevorder.