AngloGold has a long-standing strategy of promoting its product and of exploring opportunities to extract value from gold throughout the value chain. The company remains committed to developing the market for gold and its marketing programme aims to increase the desirability of its product, to sustain and grow demand for gold and to deregulate the market in key economies.

While the company continued to give full support to the World Gold Council as the vehicle for co-operative gold producer activities in the generic support of gold in various markets, in 2001 AngloGold's direct marketing expenditure focused on its own commercial and developmental ventures.

OroAfrica

In 2000, AngloGold invested $8m (R55m) in a 25% stake in OroAfrica, the largest manufacturer of gold jewellery in South Africa, as a "reconnaissance" investment in the downstream gold value chain. During 2001, OroAfrica continued to grow its business, and has been particularly successful in expanding gold chain exports to the USA. Encouraging and improved results were assisted both by the growth in business and increasing rand revenues consequent on local currency devaluation, which has further improved the international competitiveness of this business.

Besides this investment, AngloGold has cooperated actively with OroAfrica in a number of projects, including a programme of consumer research in the US market, the establishment of a new product design process and the initiation of an African gold jewellery brand.
 

At the OroAfrica Jewellery Manufacturing facility in Cape Town are Wesley Beziek, Alberto Lavagna, Enslo Jennecke, Andr? Visser, Morn? Hickman and Jacques van Rooyen. OroAfrica uses world-class manufacturing technology, developed by Filk (SPA), a partner in OroAfrica and the world's leading Italian gold chain maker.

GoldAvenue

In 2000, AngloGold, J P Morgan Chase and Pamp MKS of Geneva established GoldAvenue as a commercial venture to offer a wide range of gold products and services to business and consumers. In July 2001, the venture launched a business-to-business website for the supply of gold bullion to regional banks and their jewellery manufacturing clients, commencing first in Italy. This business will be extended to other major physical gold consumer countries in due course. The initial software for this site is currently under further development and expansion to offer a range of physical gold trading and gold lending in its next phase.

In the area of business-to-consumer activities, the partnership launched a GoldAvenue catalogue of gold jewellery in November 2001 simultaneously with the launch of their website offering gold jewellery for retail sale. This business is being developed in the USA in association with Vivre, a luxury goods catalogue business operating in the USA, in which GoldAvenue has taken a 14% equity interest. AngloGold has provided support to this venture particularly through product development, sourcing and product selection. Gold jewellery pieces developed from AngloGold's design competitions and fashion projects proved to be popular in the first catalogue.
 
Gold of Africa Museum

AngloGold managed the restoration and renovation of the historic Martin Melck House in Cape Town which was chosen as the premises for the Gold of Africa Museum. The museum houses the Musée Barbier-Mueller collection of African gold artefacts which the company purchased in 1998. Opened in November 2001, the museum complex contains permanent and temporary exhibitions, a museum shop, a goldsmithing workshop and design library, a presentation suite, wine cellar and sculpture garden. The museum has been embraced by the local tourism, arts and culture communities, and has received recognition in international and local media. Innovative gold jewellery products inspired by the collection are being developed for sale at the museum.

Riches of Africa

The third annual Riches of Africa competition was a success, generating new gold jewellery designs that have been useful to the GoldAvenue business-to-consumer activities. The design competition was expanded during the year to reach a wider audience and to tap into other artistic disciplines, as well as to cater for previously disadvantaged individuals. The training component of the programme was more comprehensive, and proved to be beneficial in eliciting promising entries. Entrants were required to submit a suite of jewellery pieces, providing valuable learning for AngloGold's new product development initiatives.

New Product Development

AngloGold continued to initiate and drive new product development activities throughout the year with varying degrees of success, resulting in much useful learning in this area. The company commissioned fashion, trend and jewellery research and worked closely with OroAfrica's designers to establish a new product development process aimed at generating new ranges of product. Two international designers were commissioned to produce jewellery lines, while AngloGold's own marketing team designed "diffusion" products from competition pieces, which were marketed by OroAfrica. In association with the opening of the Gold of Africa Museum, AngloGold brought a leading traditional goldsmith from Mali to South Africa both to develop product for the museum and to participate in a government-led experiment to develop new products with a group of South African traditional beadworkers. AngloGold also designed and commissioned the manufacture of the winning medals and gold souvenirs for the Two Oceans Marathon.

Project AuTEK

AngloGold and Mintek, South Africa's national metallurgical research organisation, launched Project AuTEK in 2000 to research and develop industrial applications for gold. In 2001, the project team was instrumental in staging - on South African soil - the first conference ever held to stimulate interest in the use of gold as a catalyst. Attended by 85 delegates from 15 countries, the event has led to the establishment of an international community of researchers interested in gold catalysis. Project AuTEK was given a boost early in the year with Gold Fields joining as a third partner and it ended 2001 with the possibility of a number of exciting collaborations with different industries in the offing.

Jewellery Displays and Fashion Industry Interface

AngloGold hosted a number of high-profile gold jewellery shows and displays in Turkey, Italy, the United Kingdom, Switzerland, Australia, Mali and Tanzania, with the objective of promoting excellence in gold jewellery design and improving understanding of the gold jewellery industry and gold consumers. Many of these displays coincided with fashion shows where AngloGold provided fashion designers with gold jewellery for the catwalk. AngloGold's association with the fashion world was strengthened through its sponsorship of the Face of Africa competition for the second year.

World Gold Council

Members' contributions to the World Gold Council doubled in 2002 to a level of $2/oz of production. It is likely that this level of contribution will increase marginally for 2002 to support higher spending by that organisation in all areas of its activities. The company's contribution in 2001 amounted to some $13m.

While the Council's resources are applied predominantly to gold jewellery marketing, they are undertaking important initiatives also in promoting institutional and retail demand for gold as an investment, and in the area of official sector policies towards gold. The Council has been in dialogue with a gold jewellery marketing initiative by gold producers who are not members of the World Gold Council in order to agree on joint marketing activities between the two groups.
 

Raymond Sitta, Drill Operator, and Pius Ndondera, Exploration Sampler, inspecting drill samples at one of the many AngloGold exploration sites in Africa. AngloGold's exploration strategy seeks to extend the life of both existing operations and to establish new mines capable of providing double-digit returns on investment. This strategy is achieved through cost-effective, focused exploration in geological terrains most likely to host significant gold deposits.