Community

Formed in 1995, following the closure of the Ashanti Morro Velho lower level operation, the Nova Lima Development Agency was one of AngloGold Minera??o's first formal community development initiatives. The partnership was formed with the town authorities, the local Commercial Association, SEBRAE (Support to small size business, a non-governmental entity sponsored by the Industry Federation) and two mining companies, AngloGold Ashanti Minera??o and Minera??os Brasileiras Reunidas (MBR). Management was entrusted to the town authorities.

At the time of its closure, the Morro Velho mine in Nova Lima had been in operation for more than 170 years, employing 7,000 people at its peak in 1975, and some 289 people at its closure in 2003.

The first step in the process was a thorough analysis to identify potential business opportunities in the region. The results showed Nova Lima had the potential to develop services such as hospitals, universities and hotels owing to its proximity to the provincial capital Belo Horizonte. This presented business opportunities for local inhabitants after mining ceased. Another area highlighted by the study was the need for computer skills among the local population to be able to create a thriving services sector. Out of this was born the SEBRAE Technical School of Management, which AngloGold Ashanti Minera??o supports with several scholarships for underprivileged schools aimed at preparing local students for business.

This joint effort has yielded positive results. Since the start of the project, Nova Lima has managed to attract more than 84 new companies, such as hospitals, hotels, food service enterprises and university facilities, which have generated 6,000 new jobs. A local Peoples Bank was also formed for the purpose of offering credit to small businesses. As a result, more jobs have been created, reinvigorating the local economy. The construction of a highway leading to town is nearing completion, again improving its prospects of attracting new investors.

In Sabar?, where currently the company's primary operation - the Cuiab? Mine - is located, a similar development agency was formed in November 2003. Although still in its infancy, the Agency Council has been set up and is jointly managed. An analysis of the business sector needs - similar to the one undertaken at Nova Lima - is currently being completed. Similarly, based on its Brazilian experience, the group has initiated a development agency in southern Patagonia in Argentina, home of the Cerro Vanguardia mine. A partnership has been formed in that region with the local provincial authorities to create the San Julian Development Agency. San Julian is the closest town to the mine and its economy is greatly influenced by mining, with the declining fishing industry as a secondary source of income.

In the towns of Crix?s and Santa B?rbara in Brazil where Serra Grande and C?rrego do S?tio are situated, talks have been initiated with the authorities and like-minded companies and agencies to implement development agencies in these regions.

What is very different about these latter initiatives is that the planning for the replacement of economic activity (post mining) is being done at an early stage so that the mining operations may act as a catalyst for economic growth. Based on the experiences gained at Nova Lima, the training and development of local people is an important imperative.