At the heart of the character of this company is the idea of being a good steward: that is to take the resources we command and use them to create value – for our owners, our employees and the communities in which we operate. The aspiration to create value characterises all aspects of our business. That means enhanced profitability and earnings, and growing the investment of our owners; the development of the skills, talents and experience of our employees; leaving communities better off for our presence; and working responsibly with the environment.
We hope that this report, together with our Annual Financial Statements, will assist people in coming to a conclusion about how well we are living up to our promises and how we plan to meet the challenges which we still face.
AngloGold Ashanti's Report to Society 2006 is the company's fifth such report, and the fourth which seeks to report, methodically and in an open and balanced manner, against both the company's own values and business principles, and against the guidelines of the Global Reporting Initiative (GRI), which remains the most broadly used standard of corporate triple bottom line reporting.
The report takes on a different format this year, in response to issues raised in a survey of stakeholder perspectives of the 2005 report. Essentially, we have introduced features designed to show the reader what we believe to be the most material ‘sustainability’ issues faced and dealt with by the company in 2006. This will be found in the sections called The business of gold and our world of gold. Also, the hard copy version of this report is half the size of previous versions: the major difference is that the hard copy version contains only a limited number of case studies – those we see as dealing with the most critical issues faced by the company in 2006. Some 50 more case studies (each briefly summarised at the end of the appropriate section) can be found in the web-based version. Country- or operation-specific reports may also be found on our website.
Perhaps the biggest socio-economic issue faced by AngloGold Ashanti, and by other mining companies conducting open-pit mining or exploration operations for precious minerals in developing countries, is the phenomenon of small-scale, informal and illegal mining occurring both around and in our mining lease areas. On the one hand, such mining often involves unsafe and environmentally dangerous mining practices, and operates outside of laws that seek both to regulate mining and to ensure benefits from mining for the broader community. On the other hand, such activities do provide a form of economic activity for individuals who have not found a place in the formal economy. It is the commitment of AngloGold Ashanti to work with host governments, at all levels, to find formalised, legal and safe ways for small scale-mining to take place, while at the same time supporting the enforcement of the rule of law.
In South Africa, many years of progress in the sphere of mine safety, with constant declines in fatality and injury rates, were reversed in 2006 due to an increased number of underground accidents. We have embarked on urgent reviews of safety measures, knowing that the improving trend has to be reinstated. We convey our condolences to the victims’ loved ones.
More pleasing in our South African operations is a significant improvement in the numbers of employees undergoing voluntary counselling and testing in our HIV/AIDS programme. Self awareness is the prerequisite for a successful prevention and treatment programme, both in the company and in society as a whole, so we are very pleased with this breakthrough.
Another major and successful initiative on the public health front is the trend-setting malaria programme implemented in the town of Obuasi, Ghana, where we aim to halve the incidence of this debilitating and deadly disease.
AngloGold Ashanti has always approached its business on the basis that relationships with employees are critical to a successful business operation. In an attempt more closely to align employees’ interests with those of the company, 2006 saw the introduction of an Employee Share Ownership Plan in South Africa following intensive consultations with organised labour. Similar schemes will be rolled out elsewhere where appropriate to the local conditions.
This company views its responsibilities towards its various stakeholders as interconnected. We cannot sustain good financial performance without achieving our objectives in human resource development, health and safety, community investment and environmental stewardship. To this end we are looking to strengthen the links between financial and sustainable development reporting.
Bobby Godsell
28 February 2007
AngloGold Ashanti Annual Report 2006 - Report to Society