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                     APPENDIX 5 PROPOSAL ON PROMOTION OF LOCAT BUSINESS DEVELOPMENT
                     To further promote local economic development the Ruida lnvestments  Ltd will evaluate and
                     assess local business opportunities for each contract including the possibility of cooperation
                     between local and foreign manufacturers.  ln addition, the Company will publish and distribute
                     information explaining procedures on how to tender for and conduct business with the
                     Company.
                     Encouraging  and assisting the individuals concerned to establish their own commercial
                     enterprises will assist the local communities. The Company recognises that a thriving
                     community is vital to the well-being  of the mining operation and will therefore give preference
       O             to local suppliers of services provided quality and cost objectives  are met. Where contractors
                     from outside of the immediate environs of the mine are engaged they will be encouraged to
                     employ members of the local communities  where possible.
                     This will form part of the selection criteria for engagement of such service providers.
                     The Company does not wish to prescribe areas of business opportunities in which local
                     residents may be interested however, there are a number of areas in which the Company may
                     be able to actively create opportunities so as to concentrate  on the core business of mining as
                     much as possible. These may include:
       a                      Light vehicle maintenance. The maintenance of the Company's  vehicles is an area which
                              could be sub-contracted.  provided quality and cost objectives are met. lt is also an area
                             where there is a large client base outside the Company.
                              Property Maintenance. There are many areas relating to property maintenance  that
                             Iend themselves to subcontract by suitably qualified people or businesses. These include:
                             painting (internal, external and roofs), plastering and bricklaying, plumbing, electricat
                             work, garden services, etc. Potential customers for these services could also include:
                              house owners, absentee landlords, businesses and municipalities, as well as sociai and
                             sporting clubs.
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                Bussing and Taxi Services. Small vehicles are possibly in the price range of certain people
                within and around the Project Area. This service has a relatively low entry threshold, but
                critically  requires the highest possible standards  of operating and maintenance.
                Workshop Services. There are existing engineering and fabricating enterprises in the
                region. lf possible, these will be encouraged to develop expertise in services and
                techniques the mining industry requires.
           Fu rthe r assistance to e ntrep ren e u rs
           There are a number of external factors that could limit the successful implementation of the
    o      Local Business Development Programme, these include:
                Lack of access to capital. The Company may offer to improve individual access to capital
                from third party financial institutions.
                Lack of working capital. Certain candidates for the Local Business Development
                Programme may have difficulties  with sufficient working capital. ln cases where the
                Company deems it prudent, the Company will assist in the supply of work-in-progress
                stocks and possibly abbreviated  payment terms.
                Lack of Recognition. Wherever a candidate for the Local Business Development
                Programme or their company is able to provide a competitive service (ln terms of price,
                quality, quantity, professionalism  and service) the Company will, all other things being
                equal, have a policy to support such an enterprise.
                The Company will designate a nominee to be the responsible person to facilitate the
    a           success of the Local Business Development  Programme and to liaise with government
                officials on the progress  made in the implementation of the Local Business  Development
                Programme.
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