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Company Response

5 May 2016


response by BASF

...At the end of November 2015, the third-party ERM audit was conducted by two South African auditors that had been validated and approved by TfS. The key categories of audit assessment included: Environment, Health & Safety; Labor & Human Rights; Management; and Governance. While the audit noted room for improvement, primarily in the areas of environment and safety, there were no critical findings of Lonmin’s governance, human rights or labor practices nor any performance violations that would prevent BASF’s continuation of its relationship with Lonmin. In response to the audit findings, BASF is taking further steps in providing active knowledge sharing with Lonmin in areas which are comparable to the chemical industry. For example: providing support to help improve the mining company’s firefighting capabilities, while also sharing best practices on enhancing community grievance procedures. Lonmin has remained open and appreciative of BASF’s efforts to help improve its safety preparedness and sustainability performance, and remains committed to participating in follow-up assessments to ensure BASF’s requirements are fully met...