Economic value added statement
The economic value added statement below provides disclosure under the Global Reporting Initiative (GRI) indicator EC1: Direct economic value generated and distributed.
Many of the group’s operations are located in areas of great need, where development has been minimal, resources are scarce and high levels of poverty exist. All AngloGold Ashanti operations make use of stakeholder engagement plans and integrated development plans to match the interests and needs of stakeholders to the company’s resources. The draft management standards relating to community and social aspects have been developed to further embed local procurement and local employment practices in the organisation.
In the Democratic Republic of the Congo stakeholders consistently raise the issue of using local suppliers and of hiring locally. In this instance, local refers to the surrounding community and is very limited. Investment in public infrastructure is primarily through the roads programme which links the community to the region and building primary school classes in Mongbwalu.
Navachab mine in Namibia continues to be an integral part of the local economic development through its local purchase initiative and employment. Approximately 82.47% of all goods, materials and services are purchased locally while 60% of the workforce is sourced from immediate surrounding areas including the Karibib, Usakos and Otjimbingwe communities.
In Cerro Vanguardia in Argentina 93% of the employees are native or resident in the province of Santa Cruz, where the operation is based. Of these, 45% or 410 direct and 740 indirect employees, live in San Julian. This produces a high impact when you consider that the population of San Julian is 9,000 habitants (October 2010 Census).
In 2010, 99.40% of AGA Mineração purchases were sourced locally within Brazil. The purchasing initiatives have in particular, benefitted small and medium enterprises from Nova Lima, Sabará, Caeté, Santa Bárbara and Barão de Cocais. With respect to employment of local communities; 80.85% of Nova Lima’s operations’ employees, 65.32% of Cuiabá and Lamego mine and 86.97% Córrego do Sítio I and II employees are sourced from surrounding areas.
Additional reporting under this indicator is available in the AngloGold Ashanti and communities section of our group-level report Sustainable Gold
|Economic value generated|
|Gold sales and by-product income||97||5,463||96||3,862|
|Profit from sale of assets||–||–||1||49|
|Income from investments||2||106||2||94|
|Total economic value generated||100||5,620||100||4,059|
|Economic value distributed|
|Operating costs (1)||41||2,289||28||1,136|
|Employee salaries, wages and other benefits||24||1,365||28||1,117|
|Payments to providers of capital||4||233||4||184|
|– Finance costs and unwinding of obligations||3||166||3||139|
|Payments to governments|
|– Current taxation||3||147||4||164|
|Community investment (2)||–||16||–||11|
|Total economic value distributed||72||4,050||64||2,612|
|Economic value retained||28||1,570||36||1,447|
(1) Operating costs for 2009 have been restated to include the effects of the realised gains and losses on non-hedge derivatives and exclude profit (loss) from associates and joint ventures. Operating costs in 2010 are higher due to increased royalty expenditure of $142m (2009: $84m), rehabilitation costs of $109m (2009: $22m), mandatory convertible bond transaction costs of $56m (2009: nil). The 2010 and 2009 years exclude hedge buy-back costs.
(2) Community investment excludes equity accounted joint ventures.