In our opinion, Selected Data marked in the Report to Society 2004 with this symbol adequately reflect AngloGold Ashanti's performance in all material respects.
4 Review 2004
A significant employer
AngloGold Ashanti is a significant employer in the global mining industry.
On average, during 2004, AngloGold Ashanti employed 65,400 employees and contractors (AngloGold 53,466 and Ashanti 11,934), broken down as follows: Corporate office 476, South Africa 44,867; Ghana 8,712; Argentina 791, Brazil 2,686, USA 411; Australia 455; Mali 1,413, Guinea 2,335, Tanzania 2,258 and Namibia 251. 745 employees were employed by Freda-Rebecca mine which was sold in September 2004.
The number in South America increased as a result of the Cuiabá Expansion project in
Brazil and additional employees at Cerro Vanguardia in Argentina. Employee numbers in the
South Africa region decreased by about 4% largely as a result of natural attrition and downsizing at Savuka and Ergo.
It is expected that there will be a 10% increase in labour at the Geita mine in Tanzania in 2005, as a result of the implementation of new labour legislation limiting working hours. The number of people employed in the
South Africa region is expected to decrease by close on 2,000 employees (5%) and 1,107contractors (15%) during 2005 as a result of further downsizing of Savuka
(See case study: Reducing the trauma of retrenchment at Savuka) and the closure of Ergo
(See case study: Orderly closure at Ergo - social plan for employees.)
An important part of the group's global presence is the allocation and use of the most appropriate personnel where they are required. While efforts are in place to minimise the use of expatriate labour, the secondment of staff is both an incentive to employees and a benefit to the company. About 270 assignees were placed on contracts within the group during the year, primarily in the African operations in
Mali, Tanzania, Ghana and Guinea. These employees have largely been drawn from South Africa, Ghana, the United Kingdom, Australia and Canada. In 2004, some 5% of senior management at the corporate office were expatriates, mainly from Ghana, the US and Australia.
(See case study: Being part of a global group - the opportunity of secondment.)
Management structure and governance
Five executive directors and 10 non-executive directors make up the board of the group, with the former CEO of AngloGold - Bobby Godsell - remaining the CEO of Anglo Gold Ashanti and the former CEO of Ashanti - Dr Sam Jonah - becoming the President of the group. The
Board structure is dealt with comprehensively in the
Annual Report 2004 and in the Ethics and Governance section of the Report to Society
2004. The five executive directors - Bobby Godsell, Dr Sam Jonah, Jonathan Best, Kelvin Williams and Dave Hodgson - are charged with the day-to-day running of the company (making up the executive committee, which is chaired by the CEO), and they are supported by operations committee, which is chaired by the chief operating officer/s.
While a member of the operations committee is responsible for human resources and the central human resource development policies that guide and support the human resources practice within the group, each region and/or business unit operates under the auspices of a regional head. Policies are developed and procedures implemented that are relevant to the country and circumstances inherent within the region, complying with regional legislation and labour requirements, as well as region-specific imperatives.
Human rights and fair employment practices
AngloGold Ashanti is committed to upholding the Fundamental Conventions of the International Labour Organization (ILO) and seeks to ensure fair employment practices group-wide. The group's business principles -
(See AngloGold Ashanti as an employer) underpin this commitment, and reflect the spirit of the Universal Declaration and the Fundamental Human Rights Conventions of the ILO.
By virtue of its domicile in South Africa, AngloGold Ashanti is subject to certain conventions signed by the South African government. These include human rights and social conventions (ILO 29, 87, 98, 100, 105, 111 and 138). South Africa's constitution, together with its associated laws, is internationally acknowledged to be amongst the most progressive in the world, guaranteeing non-discrimination on the basis of race and other unfair grounds, freedom of association and the rights of children, among other basic human rights. These guarantees and undertakings are extended to the rest of the group by virtue of the company's commitments and domicile.
Certain ILO conventions (such as ILO Convention 128 dealing with child labour, and ILO Convention No 29 dealing with forced and compulsory labour) are also governed by law in
South Africa, Argentina, Brazil, Australia, Namibia, Tanzania and the
USA, and by law and various codes such as the Malian Labour Code and Malian Collective Agreement (in
Among the agreements and policies in place at an operational level to ensure that human rights are protected are:
- recognition agreements
- disciplinary procedures
- appeal procedures
- grievance procedures, and
- collective bargaining agreements.
Human rights training of Asset Protection personnel
A key aspect of asset protection at AngloGold Ashanti is the role played by asset protection personnel. Security personnel are in the front line of many dealings with customers, suppliers, stakeholders and fellow employees. This is complicated by that fact that their role is to protect the company's assets and in so doing to be suspicious and alert to any wrongdoing by anyone. However, it is also important that asset protection personnel respect the rights of the people with whom they come into contact. Consequently an
important part of their training is a focus on human rights, particularly as set out in the Constitution of South Africa 1996 (Chapter 2: Bill of Rights) and
International Human Rights Standards and Practices for Police and Security.
The aim of the human rights training is that AngloGold Ashanti asset protection officials will be able to:
- understand the meaning of and be able to apply the principles of human rights in the context of asset protection;
- correctly identify the human rights principles applicable to different situations;
- explain when and how each human right may affect specific asset protec-tion activities and if so, to explain how these activities should be altered to ensure they respect and comply with the Bill of Rights; and
- understand and apply legislation relevant to asset protection services at AngloGold Ashanti.
Other aspects covered by asset protection personnel training includes:
- basic asset protection (including a refresher course)
- use of firearms
- search and arrest
- the taking of statements
- CCTV operations
- control room duties
- analysis of statements
- interrogation procedures.
Labour turnover (%)
Average number of employees relative to contractors
Unions and collective bargaining
Management/union relationships are governed by negotiated agreements in respect of most of the group's workforce, with 83.5% of the global workforce represented by recognised trade unions or catered for through collective bargaining processes.
In South Africa, 92.7% of all employees are either represented by unions or catered for by the agency shop agreement. (An agency shop agreement exists across the lower level bargaining unit within the company. This means that non-union members contribute 0.75% of their monthly basic pay to a human and industrial relations fund, whereas, union members contribute 1% of their monthly basic pay to this cause.) The four unions that are recognised are the National Union of Mineworkers (NUM), the United Associations of South Africa (Uasa), Mineworkers Solidarity and the South African Equity Workers' Association (SAEWA), representing respectively 72.2%, 11%, 2.6% and 0.8% of employees in the region.
|Group labour turnover (permanent employees)*|
|Leaving for other reasons||1,993|
|Number of new jobs created||565|
|* In the USA permanent employees are categorised as regular employees.|
Two significant agreements were entered into with the National Union of Mineworkers during the year:
- on 30 January 2004, a Procedural Agreement relating to the Vaal River operations was concluded. The agreement, which will serve as a guide for the interaction between management and the union, was concluded after a process of negotiation, and replaces the Vaal River Record of Understanding (the previous Recognition Agreement) which was concluded on 3 July 1998. A recognition agreement is the highest form of agreement between the union and management at an operational level.
- also on 30 January 2004, agreement was reached on the Constitution of the Board of Governors of the Vaal River Operations' Residences, which allows residents to participate in the decision-making at the residences.
The 2003/2004 wage agreements, concluded in 2003 for a two-year period, remained in place during the year.
- The second year's increase of 7% in terms of the 2003/2004 Wage Agreement for Category 3 to 8 employees with the NUM, which became effective on 1 July 2004. Annual leave also increased from 29 to 30 days, and the company's contributions to the Mineworkers' Provident Fund increased from 13.5% to 13.9%.
- The second year's increase of 7% agreed with the NUM, Uasa and Solidarity as part of the 2003/2004 Wage Agreement for Miners and Artisans. This became effective from 20 June 2004.
- The 2003/2004 Wage Agreements for Officials entered into between management and the NUM and
Uasa. The agreement required the parties to negotiate the percentage by which salaries would increase with effect from 1 January 2004. The increase was agreed at 9%, of which 8% was guaranteed to all employees and 1% distributed based on individual performance during 2003.
Other important agreements that are in place regulate any process of restructuring, namely:
- retrenchment agreement (NUM and Uasa); and
- restructuring/redeployment agreement (Solidarity, Uasa and SAEWA).
A Social Plan Framework Agreement is currently being negotiated with the NUM.
At the end of 2003, Navachab Mine in Namibia terminated its relationship with its mining contractor and transferred to owner mining. This entailed the employment of approximately 150 employees and the alignment of labour practices with local legislation. A recognition agreement is in place, signed with the Mineworkers Union of Namibia (MUN), and the union bargains with the company on behalf of all employees in the A2 to C1 Paterson bands. 75% of the workforce belongs to the MUN.
At the Morila, Sadiola and Yatela mines in Mali, all employees are represented by the Mining Industry Union (SECNAMI), although there are no specific recognition agreements.
At Geita, in Tanzania, an access agreement and code of conduct has been entered into with the Tanzanian Mining and Construction Workers Union (TAMICO). To date, 22% of employees have joined the union; a formal recognition process will commence only once the union has sufficient representation.
The Ghana Mineworkers' union represents about 87% of the total labour force in Ghana, and all non-supervisory employees.
The Australian and North American operations are not unionised.
Employee representation and participation
AngloGold Ashanti has in place a variety of strategies and structures designed to promote participation at all levels within the company. These are developed and adapted regularly to meet operational requirements and changing circumstances.
Management and employee representatives meet both formally and informally at industry, company and operational level on a wide range of issues to share information and address matters of mutual interest.
- In South Africa, these include forums such as the skills development committees and health and safety committees. The diagram below illustrates the various structures in place that regulate the interaction with the NUM at the Vaal River area, as an example.
- At AngloGold Ashanti Mineração in Brazil, programmes are in place to provide employees with the opportunity to raise issues with management on a regular basis. At Cerro Vanguardia in
Argentina employees are organised into self-managed groups.
- In Mali, union committees exist at all three operations and regular participatory meetings take place. Safety representative committees and joint health and safety structures are in place to manage safety and health on the mines. Communication forums with local management level employees take place on a monthly basis.
- At Geita mine in Tanzania, senior and junior staff representative councils are in place and meet with the general manager on a monthly basis. Safety representative committees and joint health and safety structures are in place and a monthly consultative meeting is held with all senior staff to discuss the mine's performance and other operational issues.
- The Mineworkers Union of Namibia committee meets regularly with management at the Navachab mine in
Namibia. Safety representative committees and joint health and safety structures are also in place.
- The Ghana region has a Mine Standing Negotiation Committee which provides a consultative platform for management and branch unions to discuss issues of common interest. The union is also represented on the divisional board of the company.
At the USA and Australian operations, where the workforces are not unionised, communication with and participation by employees is encouraged.
AngloGold Ashanti formal interaction with the NUM
|NUM STEWARDS' COUNCIL
||1 NUM representative per business unit|
5 representatives from VR branch
5 AngloGold Ashanti representatives
|Once a quarter
- To make decisions on strategic issues relating to the Vaal River operation
- Deliberate on the outcome of work done by work groups/forums
- To oversee implementation
(Sub-committees - Housing Forum, HIV/AIDS working group, Job grading working group)
|3 NUM representatives|
3 AngloGold Ashanti representatives
|Once a month
- To address company related strategic and other issues affecting both parties relating to the Vaal River operation.
|Vaal River NUM|
|16 NUM representatives
6 AngloGold Ashanti representatives
|Every 6 weeks or ad hoc
- To address issues affecting both parties, relevant to VR area.
- To increase capacity of shaft committees
|NUM SHAFT COMMITTEE
||3 full time stewards per business unit committee & management
||As decided at business unit
|Note: Any level of interaction may be extended to include the participation of other unions and associations for matters of common or mutual interest.||
Employee representation* (%)
*Employees represented by the works council, recognised
trade unions, or other consultation mechanisms
Constructive industrial relations
The group aims to have constructive relations with representative and recognised unions and associations and industry forums representing employees. Some 14,200 man days were lost to industrial action during the year at Morila, Yatela and Geita. (These were a result of industrial action by largely contractor employees.)
In South Africa, the industrial relations climate can currently be described as constructive and stable. During the year disputes have been declared by NUM in the South Africa region regarding:
- grading issues pertaining to machine operators; and
- the introduction of additional screening tests for new recruits.
No days were lost due to strike action in South Africa. The disputes are being addressed through ongoing communication and facilitation.
- A two-year dispute regarding the legal obligation of the company to pay a bonus scheme (prime de rendement) resulted in a three day strike at the Morila Mine in
Mali in March 2004. This dispute was resolved in November 2004. (See case study: Managing labour relations:'Prime de Rendement' dispute at Morila.)
- The mining contractor at Yatela mine in Mali, Moolman Brothers, experienced two strikes in 2004 which had an impact on operations. One lasted for three days (a sympathy strike with employees at Morila) and one lasted for seven days (as a result of a dispute relating to conditions of employment). Both were resolved through negotiation.
- The mining contractor, DTP, at Geita mine in Tanzania experienced a seven day strike relating to union recognition. The majority of employees returned to work; 207 employees were dismissed by the contractor.
- No industrial action was experienced at the Sadiola mine in Mali, the Navachab mine in
Namibia, at any of the Argentinian, Brazilian or USA operations, or the
- No industrial action has been experienced in Ghana during the year. However, employee concerns relating to the AngloGold Ashanti business combination and, in particular, payouts to senior employees in terms of share option schemes at that time, have surfaced and are being dealt with.
The mining industry is still relatively new in Mali and the industrial relations movement is undergoing a natural growth process. The company is currently contributing towards a commission that is rewriting and modernising labour legislation, which is likely to assist in the management of labour relations and building relations with the unions in the future.
Employment equity and diversity management
By virtue of its size and the fact that the group currently has operations and interests in a host of different countries across five continents, AngloGold Ashanti is active in culturally diverse societies. This brings with it both opportunities and challenges. It is for this reason that a board committee, the employment equity and development committee, chaired by board deputy chairman Dr James Motlatsi, is charged with overseeing the development of opportunities in the company for all employees, and to encourage all employees to achieve their optimal levels of career development. In doing this, due cognisance is given both to the diversity of the societies in which the group operates and their historical context. Operations in
Mali, Namibia, and
Tanzania, for example, all run cultural diversity programmes aimed at creating cultural awareness, promoting diversity and developing cross-cultural understanding. A revised diversity policy has been compiled in the
Australia region and is currently being canvassed amongst employees and management.
Employment equity and localisation of jobs
Employment equity forms a part of AngloGold Ashanti's broader human resources strategy which seeks to promote an organisational culture that recognises the diversity of the societies within which the company conducts its business, and which affords all employees the development opportunities that will enable them to achieve their optimal levels of career development in the course of their employment with the company. Key elements of the group's employment equity programme include employee development and retention, the implementation of strategies to counteract losses, to develop careers and to promote mobility in an environment that is free of discrimination.
Employment equity and/or equal opportunity targets are set and their achievement is monitored by a board sub-committee - the employment equity and skills development committee. In South Africa the employment of Historically Disadvantaged South Africans (HDSAs) is a particular priority. Employment targets and achievements are reported to the South African Department of Labour on an annual basis. Within South Africa, 32% of management comprises HDSAs. (The latter term includes citizens of countries within the South African Customs Union - SACU - and Mozambique. Managerial employees are defined as those in supervisory and management roles in Paterson job grades C-upper and above).
Within South Africa, 28% of management comprises HDSAs if managerial employees are defined as those in supervisory or management roles, Paterson job grades DL and above, as required by the Mining Charter.
In most of the countries in which it operates, cultural, racial and gender equity is governed by legislation. In the absence of such legislation, the AngloGold Ashanti business principles are followed.
- In South Africa, for example, the Employment Equity Act and the Broad-based Socio-economic Empowerment Charter (the Mining Charter) both cater for the promotion of HDSAs. An employment equity and skills development committee was launched at the corporate office in 2004 with the aim of identifying and promoting issues of employment equity and diversity, and monitoring compliance with statutes and regulations. The South Africa region has developed policies regarding equal opportunity employment, a framework promoting opportunities for women in mining, sexual harassment (see below), and fair practices for appointments and promotions. A framework for diversity training which aims to create sensitivity to diversity has also been developed and is being implemented at various business units.
- At Navachab in Namibia, equal employment and affirmative action are legislated for under the Employment Equity and Affirmative Action Act. The mine's recruitment policies are aligned with this legislation and the mine complies fully with the Act.
- In many African countries, such as Mali, Namibia and Tanzania, legislation governs the recruitment of expatriate employees and promotes the localisation of the workforce. Policies are in place giving preference to the employment of local citizens (rather than expatriates). Plans to increase employment of local citizens and consequently reduce the number of expatriates (particularly at a management level) are in place at these operations and entail the identification and training of local citizens to replace expatriate staff once they have the requisite skills. The percentage of local people employed at these operations was 97% during the year. (See case study: Malian bursary scheme develops managers of the future.)
- In the South America region (Argentina and Brazil), expatriate labour is used only when required to fill key positions that can not be otherwise filled by locals. Currently, this is less than 1% of total staff.
- In Ghana, the use of expatriate labour is overseen by government and the state annually approves the company's expatriate quota. Expatriates are employed on a two-year contract during which local staff should be trained to take over their roles.
Dealing with harassment and discrimination
AngloGold Ashanti is committed to creating workplaces which are free from harassment or unfair discrimination. Racial and sexual harassment and any form of discrimination are usually prescribed by law; nonetheless, specific policies are in place at all AngloGold Ashanti's operations to protect the interests of employees.
In the Australia region, for example, policies dealing with harassment and unfair discrimination were in place prior to the acquisition of these assets by what is now AngloGold Ashanti, and are designed to ensure compliance with stringent legislation. The policies are available on the company intranet, they form part of the induction process for new employees and regular training is provided for employees in this regard. An important part of this diversity policy relates to equal opportunities for women. The Australian operations have to report progress to government authorities an annual basis.
The USA has a comprehensive legal regime that addresses discrimination. In line with the Civil Rights Act, this region has developed an equal employment opportunity policy that prohibits discrimination on the basis of age, race, sexual orientation, colour, religion, national origin, marital status, disability, or any other status protected by law.
Issues relating to harassment and unfair discrimination are covered in the Ghana region's handbook on corporate governance. Each employee is given a copy and signs his/her acknowledgement of its contents on appointment.
In South Africa, a sexual harassment policy was put in place in 2002 so as to ensure that sexual harassment is dealt with as a serious form of misconduct, to expedite reporting, and to handle complaints. Half-day workshops on the policy were conducted among all staff at the corporate office and the policy is currently being rolled out to the business units. Equity and non-discrimination are also promoted through the AngloGold Ashanti values. Where no specific policies exist, the values are the reference point for employees and managers.
Dealing with discrimination
The USA's Equal Employment Opportunity Policy prohibits discrimination on the basis of age, race, sexual orientation, colour, religion, national origin, marital status, disability, or any other status protected by law. It also prohibits harassment on any of these bases. This policy is contained in the employee policy and benefit handbook that is given to all
employees and posted on all bulletin boards in the company offices. Violation of this policy results in disciplinary action and could include termination of service. The policy also prohibits retaliation against an employee for filing a complaint under this policy or assisting in a complaint investigation.
Communicating the values in South America
AngloGold Ashanti's values were launched at the regional offices within the South America region initially by group CEO, Bobby Godsell, to senior management and representatives of the various offices and operations. This was followed up by launches on every site for each shift. A values calendar was distributed to all employees and contractors.
Group Employees vs contractors
Training and development
Training and development is a primary focus area for the group. In line with AngloGold Ashanti's belief that that all employees should be provided with the opportunity for appropriate training which improves their workplace competencies, the company is also committed to ensuring that every employee has the opportunity to become numerate and functionally literate in the language of their workplace. During 2004, some $28 million was spent on training and development programmes across the South Africa region.
Four broad areas of training are identified:
While many of the group's employees come to the company with skills, the group also plays an active role in providing for vocational training.
(See case study: Apprenticeship programme at Obuasi.)
In South Africa, where 69.4% of the group's employees are based, the company is registered with the Mining and Minerals Sector Education and Training Authority (SETA) known as the Mining Qualifications Authority (MQA), a tripartite body formed between labour, the state and employers. The South Africa region's centralised training venue provides accredited technical training in the following core disciplines: mining, mining services, engineering, metallurgy, and occupational environment safety and health. The centre is ISO 9002 certificated and accredited by the MQA. Skills programmes and learnerships presented at the centre are outcomes-based and provide employees with the necessary knowledge and skills to do their work safely and efficiently.
In Brazil, for example, vocational training is provided by a range of institutions - 40 Serra Grande employees started a two-year mining technicians course at the National Industries Services School (SENAI) in Crixas Brazil. Nine employees were admitted to SENAI from AngloGold Ashanti Mineração for mechanical and electrical engineering apprenticeships during the year, while five trainees were sponsored to study at the SEBRAE technical school of management.
Adult Basic Education and Training
It is the company's policy to provide Adult Basic Education and Training (ABET) to ensure that all employees are able to become literate and numerate. (All employees at the
Australian and USA operations are literate.)
To be literate in a particular language, an individual should be able to use the language effectively to think and acquire knowledge, express their identity, feelings and ideas, and interact with others. To be numerate, an individual should be able to develop the ability and confidence to think numerically in order to interpret and critically analyse everyday situations and to solve problems.
Achieving 100% literacy and numeracy amongst employees has long been a target for AngloGold Ashanti. More recently, however, the
South African Mining Charter requires that all employees are offered the opportunity to become functionally literate and numerate within five years of conversion to new order mining rights.
During the past 12 years some 32,000 employees have attended ABET in South Africa, 76% of all supervisory employees (some 10,060 employees) have an ABET qualification; 45% of all employees have an ABET level 3 and above qualification. ABET has three qualification levels, 1, 2 and 3. ABET 1 is equivalent to three years of formal education, ABET 2 to five years and ABET 3 to seven years. As from 2004, the equivalent of ABET 4 - NQF1 - is available to employees.
Through the Recognition of Prior Learning Programme (RPL), workers' current level of education can be established and acknowledged. RPL also assists the human resources departments in the career path planning of employees.
(See case study: Adult Basic Education and Training for all.)
Full-time and part-time courses are held at the ABET centres and at individual mines at Vaal River and West Wits. Full-time ABET courses, which are generally for candidates who have been identified for career advancement, are run over a period of 10 weeks, and part-time courses over six months.
Literacy levels at the Malian and Tanzanian operations have been improving mainly through employee self-development. Company-sponsored French and English literacy programmes for these operations are being investigated.
The literacy level at Obuasi in Ghana has been improving year on year mainly as the older generation of employees who could not read or write have retired and a younger, schooled generation is employed. Although literacy classes are offered to employees on a part-time basis by the company, participation to these has been poor. At Bibiani, literacy is a prerequisite for employment.
While the level of literacy at the South American operations in Argentina and
Brazil is very high (99.95%), English training is provided on site for those who wish to learn the language, and more than 150 people attended classes at these operations during the year. Employees are also encouraged to complete their initial schooling - at Cerro Vanguardia 14 employees participated in a basic education programme during the year, while at Serra Grande 45 employees attended classes and received junior high school certificates.
|Estimated levels of literacy at the African operations|
|Mali||English and French|
|Namibia||Afrikaans and English|
|South Africa||Afrikaans, English,
Shangaan, Xhosa, Zulu|
Four individuals participated in the group-wide Executive Development Programme (EDP) in 2004 (six in 2003), drawn from
South Africa and Australia. This programme exposes candidates to high-level courses at a range of tertiary education institutions.
In the South Africa region, the development of senior employees in South Africa is catered for by the company's Management Development Programme (MDP); the region also offers an Intermediate Management Development Programme (IMDP), where younger employees with management potential are identified and given an opportunity to develop their careers. The
Malian, Tanzanian and
Namibian operations also participate in this programme, and - for the first time in 2004 - participants joined from the
USA, Argentina and Brazil.
The group's Talent Management Programme identifies and develops the group's management for the future. The programme has three areas of intervention:
- development, through a range of management development programmes;
- retention, which is the mentorship of individuals as well as the allocation of special projects for identified talent; and
- monitoring of talent, which includes an annual talent review at executive level to monitor succession plans for talented employees.
The programme is aimed at:
- specific individuals, who have been identified through their career development plans; and
- groups of individuals with high potential attending a range of management development programmes.
Development plans form part of the greater performance management process within the group and is reviewed on a bi-annual basis.
|Number of candidates: |
|Programme|| 2004 ||(2003)||Country of origin|
|Executive Development Programme||4||(6)||South Africa, Australia|
|Management Development Programme||43||(39)||Australia, Brazil, Mali, South Africa, Tanzania, USA|
|Intermediate Management Development Programme||33||(34)||Mali, Tanzania, South Africa|
Study assistance programmes for employees and non-employees are provided across the group to increase the skills pool available to AngloGold Ashanti.
The South Africa region spent $1.79 million (R11.5 million) on bursaries for 112 students in a wide variety of disciplines and at a number of tertiary education institutions. The bursary scheme is open to employees (in-service bursary scheme), and school leavers. Currently, the students are pursuing tertiary studies in:
- mining: 34 (22 at technikon, 12 at university);
- engineering (mechanical, heavy current electrical, as well as process and instrumentation control): 36 (14 at technikon, 22 at university);
- metallurgy: 17 (4 at technikon, 13 at university); and
- mineral resource management (geology and survey): 25 (3 at technikon, 22 at university).
In respect of the 112 students, 34 are employees, and 78 are school leavers. Successful completion of the tertiary qualification by non-employees may result in an offer of employment for in-service training. If accepted, the recruit will undergo an approved training programme for his or her selected discipline to equip him or her with the skills and knowledge necessary to progress on a defined career path.
A bursary scheme was implemented in Mali in 2004. Ten top school leavers entered into graduate studies at the University of the Witwatersrand in Johannesburg, South Africa, in the disciplines of mining, engineering, metallurgy, environment and geology, following a language bridging programme at the Wits Technikon at the end of 2003.
Three bursaries were awarded by the Navachab mine in Namibia in 2004 for study in the disciplines of mining, metallurgy and geology.
In the USA, the company offers scholarships to eligible employee dependents to assist them with their college education. Some $47,000 was spent on this programme in 2004. The company also provided tuition reimbursement to employees wishing to pursue a college degree in a discipline related to their position in the company at a cost to the company of some $40,000 during the year.
In Ghana, company bursaries are granted to the dependents of employees who have gained admission to government-approved secondary and tertiary educational institutions, with 1,380 bursaries having been granted during 2004 at a cost of some c1.2 million per person.
Staff at the corporate office may participate in the company's part time study assistance in respect of studies undertaken for the purposes of career development.
In South America, efforts to increase the skills and educational levels of employees reaping rewards, with a 35% increase in the number of employees holding university degrees as at the end of 2004.
At Navachab in Namibia, a study policy was implemented during the year which allows for employees to embark on part or full time studies for career and self-development.
Developing talent for the future
Over the past five years AngloGold Ashanti's South American operations have been relying on a novel training and development programme to prepare newcomers and to develop talent for the future.
The course, known as the Trainee Development Programme, has been conceptualised and designed specifically for future incumbents of technical and managerial positions. With a duration of 12 to 15 months, the training includes exposure to a broad range of the company's activities, its values and policies, with a particular focus on safety, environment, human resources and external affairs including developing and maintaining stakeholder relationships. Opportunities exist for trainees to become familiar with finance and personnel management, while visits to other South American operations are included to broaden experience and to encourage interaction among operations.
Graduates between 23 and 28 years of age with a sound knowledge of geology, mining, metallurgy and other related disciplines, and a knowledge of both computer science and English at an intermediate level, would stand to benefit from the programme, which provides an opportunity for up to five newcomers annually. Aspirant trainees are selected by external recruitment offices, and are subject to many interviews, technical and psychological testing and an assessment by departmental managers.
Progress assessments are conducted periodically by managers and counsellors. The candidates are responsible for producing reports on the work they do and the operations and departments visited, with recommendations for improvements. On concluding the programme, the trainee is expected to present an 'applicable project' which he may consider of interest to the company.
At the end of the training period, trainees are assigned to suitable positions at the operations. Outstanding candidates are rewarded with a period of training abroad in order to broaden their exposure to the organisation and its culture.
Training for life
Training for life is a relatively new concept in the mining industry and one that is increasingly being associated with the end of mine lives. Training for life equips employees or ex-employees with skills to ensure their continued employability or ability to be self-employed after employment by the company and in preparation of career endings, both as a result of ill health or as a result of mine closure.
The group's aim is to deliver excellent and valued training and development opportunities to all employees which would be broadly applicable and transferable; this is evident in the broad spectrum of programmes made available to employees, ranging from basic literacy and numeracy learning, through to superior technical training as well as executive development at top business schools of international repute.
Generally all employees who leave the company's employ through retrenchment are offered re-training in a skill that will assist them to remain economically active within their community. The type of skills include photography, engineering skills, candle-making, leather work etc.
Most mining operations in Australia have fly-in, fly-out arrangements owing to their remote location which leads to high staff turnover. The company has a policy of maintaining a full development plan for all employees, not only in relation to their current roles but also for potential roles and their general employability, skills and competencies.
Broadening horizons - secondment as a form of people development
Being part of a global company has the advantage of broadening career oppor-tunities and offering new experiences.
(See case study: Being part of a global group - the opportunity of secondment)
"The company's secondment policy is an important element of the overall picture of developing people," says Leanne Gordon, human resources manager, AngloGold Ashanti Australia.
The Australia region is well represented in other parts of the AngloGold Ashanti group with 13 of its permanent employees currently seconded for periods of six months to three years on overseas assignments. This ranges from geologists working in Mali, Tanzania, China and Mongolia to a mine manager in Mali, and metallurgists in South Africa.
Matt Painter, a structural geologist recently returned from 12 months at Geita Gold mine in Tanzania, says of his experience: "Professionally, it was a great opportunity to work on what is shaping up as one of the world's great gold orebodies. I felt that I was also able to contribute my
knowledge and experience in tangible ways that have benefited, and will benefit, mining at Geita."
Recently, the company also sponsored four young professional employees in the areas of mining engineering, training and development, metallurgy and geology on a two-week management training visit to the South
Africa region. Suze Loughnan, training coordinator for geology at Sunrise Dam Gold Mine was one of the four participants. "What an eye opener into a global company... it was unbelievable to see the presence of AngloGold Ashanti in South Africa in terms of how the company cares for its people and ultimately walks the talk."
Developing talent in the African operations
Through a process of development panel interviews, performance reviews and succession planning, talented employees are identified for development. This pool of talent is reviewed on an annual basis.
Development plans are put in place for these individuals including formal training programmes, exposure visits (to other operations), special project assignments and developmental moves to other locations.
Both the MDP and IMDP programmes were developed in partnership with the Graduate School of Business at the University of Cape Town. They each carry academic accreditation; in the case of the MDP it is equivalent to a post-graduate qualification. This allows for the company's needs for better trained managers to be met, while also fulfilling employees' requirements to obtain publicly recog-nised qualifications.
Fair remuneration and benefits
The company seeks to remunerate employees fairly at both an individual and team level. Remuneration levels are set taking into account the market as well as economic and inflation indicators. There is generally an annual review or annual negotiations with the representative unions in respect of those employees covered by collective bargaining agreements.
In South Africa, in particular, by far the majority of remuneration elements, although focused on the individual, are the result of collective bargaining between management and the representative unions. This has given rise to standard rates of pay for the majority of employees (non-supervisory employees and miners and artisans) rather than pay scales in which employees are remunerated for contributions, as in the case of management and officials. A process is currently underway between management and the representative unions to restructure the conditions of employment for miners and artisans in order to move away from standard rates to pay scales.
In addition to basic pay, various productivity and safety bonus schemes exist at most operations to both motivate and reward employees. As well as employee benefits that are legally mandated the various regions offer health care benefits, pension and provident funds, company vehicles, housing, housing allowances or home ownership schemes, life assurance, tuition assistance, maternity benefits, and subsidised canteens, amongst others.
Provision of health care
AngloGold Ashanti provides a comprehensive health care service to employees, especially in South Africa, where the majority of the company's employees are located.
- In South Africa, AngloGold Health Service (AHS) runs two occupational health centres, which are staffed by two doctors and some 30 support health care practitioners each. In addition, comprehensive health care is provided to employees and some dependents.
- Health care is provided by an external service provider in South America (Argentina and
Brazil) to employees and their families.
- The Malian operations have on-site mine clinics that are registered with the National Health authorities and provide health care for all employees and registered dependents.
- Health care in Tanzania is provided for employees and their dependents at an on-site mine clinic and local health care structures. The mine supports the upgrading of the facilities at the local Geita hospital and offers technical support to its staff. The on-mine occupational health clinic has also recently upgraded its facilities.
- Employees at the Navachab mine in Namibia are members of a medical scheme to which the company contributes and employees are entitled to private health care as part of this scheme. An on mine clinic provides primary health care and occupational heath services.
- Health care services are provided to the employee, his or her spouse and six dependents at the Edwin Cade Memorial Hospital at Obuasi in Ghana, while the Iduapriem mine has a 24 hour clinic on site catering for employees and dependents.
- In Australia, health care is provided by the national government run health system as well as employee funded additional health insurance. On-site nurses are employed and other health care professionals are contracted to provide a level of care.
- In the USA, access to health care for employees is provided through a self-insured medical plan administered by a third party administrator.
Providing health care to employees and dependents in South Africa
AngloGold Ashanti strives to provide equitable health care funding for employees and their dependents. Health care provision and acceptable levels of care are determined by, among other factors, the infrastructure within the areas in which the employees are located. For the distant communities with which AngloGold Ashanti is associated, the focus is on facilitating access to, and enabling the state to fulfil its responsibilities in the provision of basic care.
AngloGold Health Service (AHS), a subsidiary of AngloGold Ashanti, operates in the core operating areas. Each operating area has a central hospital providing secondary, and to some extent tertiary level care, surrounded by a network of peripheral primary health care and occupational health clinics.
Health care activities which focus on care to employees in these areas and care to immediate dependents where appropriate, include:
- preventative health care
- occupational health care
- primary health care
- hospital care
- management of trauma, and injury on duty, and
- management of HIV/AIDS and tuberculosis.
The occupational health discipline performs the functions of screening prior to employment, evaluation of baseline health status, and surveillance during employment for purposes of early detection of disease (particularly high risk diseases commonly associated with the mining industry) and directing the management of diseases detected, including workplace and compensation initiatives required.
The primary health care discipline aims to provide care at an appropriate level at peripheral sites, facilitating patient access and enhancing cost-effective utilisation of resources. The service caters for both work-related and non work-related illness and injury. All patients who cannot be appropriately managed at this level are referred to the central hospital. The central hospital in each area has some 300 beds with, in addition to admission facilities, emergency rooms, operating theatres and multi-disciplinary intensive care units. Speciality disciplines include:
- internal medicine
- general surgery
- orthopaedic surgery
- ear, nose and throat surgery
- obstetrics, and
These clinical disciplines are supported by the allied clinical disciplines of physiotherapy, occupational therapy and clinical psychology, which together ensure comprehensive patient care and rehabilitation.
Amohelang - a new centre for tetraplegics
Amohelang, which means 'we accept' in SeSotho, is the new centre for tetraplegics which was opened in March 2004 by AngloGold Ashanti CEO Bobby Godsell. The centre was previously located at Ithuseng on the premises of the Ernest Oppenheimer Hospital in the Free State. Currently it houses 34 tetraplegics.
It is AngloGold Ashanti's philosophy to care for employees who, as a result of some tragic event and/or injury at work, become disabled due to spinal injuries. The majority of those who are housed here have suffered work-related injuries, or injuries resulting from non-mine incidents, such as car accidents.
Tetraplegic is a term given to somebody who is paralysed from the neck down but has use of his hands. This type of injury is an infrequent occurrence - the last person to be admitted to the centre was in 2002. Amohelang becomes a home for the individual who for one or another reason cannot - or decides not to - return to his own home. There are often many reasons for this including the fact that the centre provides the extra care that many would not find in their own homes, particularly in rural areas.
Amohelang has a budget of about R6.7 million ($1.05 million) per year. The new unit can accommodate up to 48 persons and is equipped with kitchen and dining room, gymnasium for physio-therapy, TV Room, office facilities for the medical staff, six family units for visitors, wheelchair-friendly ablution facilities, and a wheelchair workshop for wheelchair repairs, amongst other things.
The facility is run professionally with suitable staff including the unit manager, three professional nurses, five enrolled nurses, five enrolled nursing auxiliary personnel, 24 caregivers, as well as the cleaning staff. The centre has purchased a multi-purpose van for transporting individuals to and from the local town for additional care and for outings.
Responding to regional health threats
The primary regional health threats faced by employees and their families and communities are HIV/AIDS and malaria. (TB is dealt with under the
Occupational Safety and Health section of the Report to Society 2004.)
Provision of accommodation and nutrition
For the most part, mining operations are located in remote areas, drawing employees to the operations who would normally not be accommodated locally. The provision of company accommodation varies from region to region and is dependent on the availability of accommodation, the make-up of the workforce and the remoteness of the region. In the major cities, like Johannesburg, Denver, Perth, etc, housing is readily available. The same applies to a number of the operations, such as at CC&V.
At Sunrise Dam, Australia, many employees operate on a fly-in, fly-out basis and accommodation is therefore provided during the period that employees are at work.
At Cerro Vanguardia, in South America, many employees come from outside the immediate area of operation and houses have either been constructed by the company in nearby Puerto San Julian, or facilities erected at the mine site. The current facility comprises 335 rooms and will be extended during 2005 to further accommodate a growing workforce.
At the Morila and Yatela mines in Mali, senior staff are housed in company accommodation, while other staff are paid housing allowances. 80% of employees are housed in company accommodation at the Sadiola mine, and the balance receive housing allowances.
A housing loan scheme (for home ownership) is available for senior employees at Geita mine in
Tanzania; the balance of employees receive a housing allowance. 90% of employees at Navachab in
Namibia are housed in company housing; the remainder of employees receive a housing allowance (for rental accommodation).
In South Africa, programmes are in place to encourage home ownership. Many employees are housed in company accommodation. Nutritional professionals oversee meals provided at staff accommodation, and regular health audits are conducted.
(See box above.)
Addressing issues of accommodation in the South African mining industry
Historically, the South African mining industry has drawn a large percentage of its non-supervisory workforce from countries around South Africa - Lesotho, Mozambique, Swaziland and Botswana - as well as from rural areas within South Africa - such as the Eastern Cape, KwaZulu-Natal and Mpumalanga. These employees are accommodated on-mine in company hostels which comprise high-density rooms (housing between four and eight people per room), catering facilities and entertainment and recreational facilities. Their families, though, were not offered accommodation on-mine and remained in their countries or regions of origin.
Over the years, much effort has been focused at lowering room density, improving facilities (adding classrooms and gyms, for example), and transferring management of these hostels to combined union/management committees. More family units have been constructed and facilities to accommodate visiting families for periods of time have also been constructed. At the same time, employees have been given an option of receiving allowances if they choose not to use the hostel facilities.
Hostel living is not ideal and not conducive to family life. However, even where employees have an option large numbers remain on-mine without their families, choosing to reside either in company accommodation or elsewhere (and, if the latter is chosen, receiving an allowance). Many employees canvassed by the company choose to maintain their homes and families in their country or region of origin, and return to their homes at the end of their employment.
The numbers of employees accommodated in hostels has declined to 65% in 2005. Currently, 23,400 employees are accommodated in the nine company hostels.
Plans are in place to renovate many of these, with the emphasis on the longer-life operations, to decrease room density and provide residents with improved facilities and a greater degree of privacy.