Community-related matters are addressed at board level, under the auspices of the Safety, Health and Sustainable Development Committee which has within its remit the evaluation of social, economic, environmental and health impacts of the company's operations on local communities. The committee comprises four non-executive directors – Bill Nairn (chairman), James Motlatsi, Sam Jonah and Simon Thompson – as well as two executive directors, Bobby Godsell (CEO) and Neville Nicolau (COO Africa).
AngloGold Ashanti is committed to engaging with non-governmental organisations (NGOs) and other stakeholders on issues of mutual concern. A number of meetings have been held with NGOs during the year and, where appropriate, joint monitoring and investigation processes are being put in place to deal with both legacy issues and ongoing stakeholder concerns at Obuasi and in the DRC.
AngloGold Ashanti has developed a Human Rights policy which it has asked several external parties to comment on prior to approval by its executive committee. It is expected that this policy will be implemented in a phased approach by the end of 2007. In addition, the company has applied to become a signatory to the Voluntary Principles on Security and Human Rights. (See Ethics and governance section)
The discussion that follows reports on the company's community-related performance in line with the company's business principles (in orange below).
As exploration and mining activities frequently occur in areas that are remote or regions where there is very little other economic activity, their relative impact is often heightened. The potential impact of exploration and mining activities needs therefore to be considered at the exploration stage, before any activities begin, right through the operations’ operating lives, to eventual closure and thereafter. A range of potential impacts and mitigating measures are identified during the environmental and social impact assessment, and mitigating measures are then incorporated into the Environmental Management Plans (EMPs) over operations’ life of mine and these are discussed further in the Environmental section.
In addition to the guidance provided by the company's values and business principles, the group's relationships with communities are often guided by operation or region-specific community policies where they exist. To inform and complement these, a company-wide management system, comprising guidance notes and toolkits are being developed and rolled out.
The South African socio-political landscape is governed by a range of legislation; the most important to the mining sector being the Mineral and Petroleum Resources Development Act (MPRDA) which requires that all mining operations submit and adhere to a Social and Labour Plan as a prerequisite to the granting of new order mining rights and report their compliance with the MPRDA in accordance with the Mining Charter. In addition to specific human resources-related issues, the Charter requires mining companies to engage with local communities in which the company’s operations are situated and from which it draws its workforce. AngloGold Ashanti was granted these conversions in respect of all of its operations in August 2005 will report on its compliance with the Mining Charter in 2007. This report may be accessed at www.anglogoldashanti.com
|Cerro Vanguardia (92.5%)||234||267|
|AngloGold Ashanti Brasil Minera??o||692||617|
|Sadiola (38%) and Yatela (40%)||210||238|
|Ashanti Fund and other corporate donations||3,025||3,963|
|South Africa operations||107||187|
* The figure for Siguiri includes the amount paid to the Prefectural Council for the development of Siguiri as part of a legally binding 0.4% revenue agreement.
Artisanal and small-scale mining remains a significant challenge for the company. Currently baseline audits and action plans are being put in place at all mines and exploration sites where this is a material issue and interventions are most advanced at Geita. Other sites that are materially affected are Obuasi, Siguiri and exploration areas in the DRC and Colombia. (See AngloGold Ashanti’s approach to artisanal and small-scale mining).
AngloGold Ashanti is mindful that there are specific considerations that need to be taken into account regarding indigenous peoples. The company is also involved in this dialogue via the International Council on Mining and Metals and supports the Council’s draft position statement on indigenous peoples (http://www.icmm.com/news/1054Drafthighlevelpositionstatement-FINAL.pdf)
The necessity for, and the process of, informing communities timeously of any developments, and maintaining their involvement throughout the operational life cycle, are enshrined in the law of many of the countries in which the group operates. This communication becomes especially important as operations, or portions of operations either gear up to full production or approach the end of their economic lives. These processes have now been formalised with the rollout of the Stakeholder Engagement Action Plan guidance note and accompanying resources and tools.
An example of this is the public consultation and disclosure programme developed at Sadiola and Yatela according to IFC guidelines, which is being implemented to good effect. (See case study in the Report to Society 2004, ).
The group spent $7.75 million on corporate social investment in 2006 (2005: $8.19). Corporate social investment expenditure is defined as the voluntary investment of funds in the broader community, through programmes, which span a range of development and maintenance activities seeking to complement the work of government, non-government (NGOs) and community-based organisations (CBOs), where the target beneficiaries are external to the company. Corporate social investment specifically excludes those activities which the company is legally obliged to undertake or where the purpose is primarily commercial, for example marketing, employee benefits or public relations activities.
The vehicles for corporate social investment differ from region to region, and operation to operation, and are in line with the specific needs indicated by communities, for example, the AngloGold Ashanti Fund in South Africa (where most of the company’s employees are based). See case study on the AngloGold Ashanti Fund. These processes have now been formalised with the rollout of the Integrated Development Action Plan guidance note and accompanying resources and tools.
The AngloGold Ashanti Fund and Trust were managed by Tshikululu Social Investments, a specialist corporate donor support agency, for over eight years up until the end of December 2006. As a result of changes to AngloGold Ashanti’s corporate social investment strategy and its focus, it has been agreed between the company and TSI that, in future, it will be optimal for AngloGold Ashanti to mange its own CSI delivery. Great care has been taken in planning the handover to limit disruption to historic and potential beneficiaries of the AngloGold Ashanti Fund and Trust.
The following operation and country-specific programmes are in place:
In 2004, the Board Committee on Safety, Health and Sustainable Development ratified the International Finance Corporation's (IFC) Safeguards on Involuntary Resettlement as its policy on resettlement. No new resettlements were undertaken during the year. Given the fact that there is potential for new resettlement during 2007, a company-wide guidance note is being developed to assist operations undertaking resettlement and compensation process, and this will be in place at all operations by the end of 2007.
As part of the company’s artisanal and small-scale mining strategy, AngloGold Ashanti is in the process of initiating joint programmes with government agencies and other interested and affected parties to identify and allocate land to alternative livelihood programmes, including artisanal and small scale mining, in Ghana, Tanzania, Colombia and Guinea. There is still considerable work to be done on this aspect of the strategy to deal with artisanal and small scale mining issues.
As reported in the Environmental section AngloGold Ashanti is participating in an ICMM initiated ‘integrated mine closure’ programme to address the integration of social, economic and environmental aspects in the closure process. We will continue to plan an active role in this process and a group-wide review of mine closure planning will be undertaken during 2007.
AngloGold Ashanti believes that its operations and activities should contribute toward the long-term sustainable development of host communities.
This is particularly challenging for sometimes short-lived mining operations or exploration projects, particularly when there is only a limited period in which to make an impact.
Specific examples in 2006 include: