Safety and health

The number of fatalities – 14 in 2008 – was a significant improvement on the group’s performance in 2007, when 34 people died at work. The Fatal Injury Frequency Rate (FIFR), at 0.09 per million hours worked, was consequently 59% lower, compared with the 0.21 per million hours worked in 2007. Eleven of the 18 operating mining units did not experience a fatal incident (10 in 2007). The Lost Time Injury Frequency Rate (LTIFR) improved by 11% to 7.32 injuries per million hours worked.

In South Africa, Section 54 of the Mine Health and Safety Act provides for the Mine Safety Inspectorate to close part or all of a mine should it believe that any particular occurrence or condition may endanger the health and safety of any individual on the mine. In 2008, AngloGold Ashanti received 34 instructions in terms of Section 54 to close significant sections of mining operations. Not all of these followed fatal incidents, as was the case in 2007. In 2008, 44 full shifts were lost as a result of the imposition of these Section 54 orders (2007: 38). In response to each Section 54 instruction, an investigation is undertaken, remedial actions are proposed and implemented, and a presentation is made to the Safety Inspectorate to communicate the remedial work undertaken.

AngloGold Ashanti believes that good safety performance and efficient production go hand-in-hand. The company is working very closely with its counterparts in the unions and the Safety Inspectorate to ensure both compliance with standards and improvement in performance.

HEALTH

Occupational health risks to employees differ significantly from region to region and depend on the type of mining operation. The most significant occupational health risks within the company include: occupational lung disease (OLD), which comprises silicosis and occupational turberculosis (TB) in underground operations that are host to quartz-bearing rock; noise-induced hearing loss (NIHL); heat stress; and radiation. Occupational health regulations require ongoing biological monitoring for lead, mercury and arsenic, among others.

The occupational health risks, and the company’s approach to their management, are outlined in more detail in the sections that follow.

Medical surveillance

Medical surveillance for occupational illness is undertaken at all operations except CC&V, where comprehensive medical care facilities are available to employees and the risk of occupational illness is deemed to be low. The facilities and systems in place are dependent on the risk profile of each operation, as well as the requirements of local legislation. Information relating to operational occupational health surveillance programmes and specific issues that are dealt with may be found in the Country Reports.

Typically, occupational health surveillance examinations take place when an employee joins the company, at periodic intervals during employment (depending on the risk, local regulatory requirements and standards) and when he or she is transferred from one operation to another or leaves the organisation (retirement or resignation).

In South Africa, 51,057 medical surveillance examinations were undertaken by the group’s two occupational health centres (2007: 51,064). Accross the group, a total of 66,039 medical surveillance examinations were conducted.

In 2007, the group identified a need to improve occupational health practices and medical surveillance at Obuasi in Ghana, Geita in Tanzania and Navachab in Namibia; this remained an area of focus in 2008. Work began on the occupational health facility at Obuasi in June and a risk-based medical surveillance programme was introduced. The hospital at Iduapriem in Ghana is also being expanded and should result in improved occupational health care through the addition of, among other things, an X-ray facility. A new hospital was opened at Siguiri in Guinea in 2008.

No new cases of occupational illness were reported in Brazil, Argentina, Australia or the United States. A review of occupational health practice was undertaken at Sunrise Dam in Australia and at CC&V in the United States during the year.

Occupational Lung Disease (OLD)

The most significant occupational hazard for employees is exposure to respirable silica dust, which can cause OLD. OLD includes TB, TB silicosis and obstructive airways diseases. TB incidence and prevalence levels are aggravated by the high rate of HIV prevalence in the mining population, with HIV being a major factor in the development of TB. It is estimated that about 85% of employees diagnosed with TB are also HIV-positive.

In 2008, 761 cases of OLD (all at the South African operations) were compensated by the Medical Bureau for Occupational Diseases (MBOD). This represents a rate of 22 per 1,000 employees. In 2007, there were 207 cases of OLD in South Africa  which were compensated by the MBOD (a rate of six per 1,000 employees). The apparent deterioration in the OLD rate is attributable to the MBOD addressing historical backlogs.

Silicosis

Silicosis is a disease characterised by lung fibrosis caused by the inhalation of particles containing respirable crystalline silica dust. It represents a risk in underground mining areas where there are high concentrations of quartz within the orebody. While the threat of silicosis persists in South Africa, efforts to eradicate the disease have largely been successful at the group’s operations in Brazil, as a result of the mechanisation of many processes, successful dust management programmes, intensive monitoring, and Brazilian legislation that limits the number of years that employees may work underground.

In South Africa, all employees exposed to silica dust undergo a chest X-ray every six months, along with an annual clinical examination, and a three-yearly lung function test. Employees diagnosed with early-stage silicosis are referred to the Medically Affected Employee Policy (MAEP) where they are counselled and efforts are made to place them in lower-risk areas.

In South Africa, 442 new cases of silicosis (pure silicosis and all combinations of silicosis) were identified and submitted to the MBOD for compensation (a rate of 13 per 1,000 employees). In 2007, 462 cases were submitted to the MBOD (a rate of 14 per 1,000 employees).

The case of Mr Thembekile Mankayi was heard in the High Court of South Africa in July 2008. This follows a claim received in October 2006 by AngloGold Ashanti for compensation in respect of damages suffered by Mr Mankayi following his alleged contraction of silicosis. Mr Mankayi was employed by the company at Vaal Reefs Mine from 1979 to 1995. AngloGold Ashanti successfully defended this action on the basis that section 35 of the Compensation for Occupational Injury and Diseases Act (Act 130 of 1993) (COIDA), which precludes common law redress and provides compensation directly to the mineworker, was also intended to apply to the Occupational Diseases in Mines and Works Act (ODMWA). Compensation for silicosis is currently provided for under the latter. Following the judgement, Mr Mankayi filed an application for leave to appeal the ruling under the auspices of the Supreme Court of Appeal in Bloemfontein. In the light of the fact that this issue is of importance both to Mr Mankayi and to the South African mining industry, AngloGold Ashanti has not opposed leave to appeal, which has been granted. The appeal may be heard in 2009 or 2010.

AngloGold Ashanti recognises that silicosis is a significant issue for past, current and future employees.

The group has adopted a comprehensive programme to address silicosis that targets:

• the desired reduction and eventual elimination of the disease by addressing its cause – silica dust; and
• the identification, care and compensation of those afflicted.

A concerted effort to limit silica exposure within the underground operations involves:

• engineering measures to limit the generation of and exposure to dust by employees;
• monitoring and management of any exposure, and the development and implementation of administrative controls;
• education of employees, management of protective measures and cultivating an understanding of both the hazard and the impacts of exposure; and
• the use of personal protective equipment.

The AngloGold Ashanti South African division reported that 3.1% of employees were exposed to dust levels above the occupational exposure limit (OEL) of 0.1 mg/m³. This is in line with the industry-agreed target, in terms of which 95% of all individual samples must be below this limit. These industry targets were agreed by a tripartite body, the Mine Health and Safety Council.

As part of an ongoing process aimed at continuous improvement, the company continues to investigate both methods of dust management and monitoring methodologies. Progress in respect of dust levels thus far has been as a result of a combination of factors, including the implementation of engineering controls such as:

• adherence to ventilation standards;
• effective watering-down practices;
• water quality management; and
• footwall treatment programmes.

The installation of upgraded air filtration equipment was also completed during the year.

Adherence to administrative controls is critically important in the programme (for example, adherence to blast re-entry times and individual employee shift duration). The provision of personal protective equipment to employees working in high-risk areas (such as those involved in ore transport and tipping) is also important, and compliance requires continual focus.

The slow rate of certification of employees suffering from silicosis by the South African MBOD, and subsequent compensation in terms of national legislation, is still a concern. Inadequate systems and a lack of resources continued to result in significant delays and, even more worrying, many silicosis sufferers are presumed to be unidentified and without compensation. This legacy is a common and significant issue for the gold mining industry in South Africa and was the basis of an industry initiative undertaken under the auspices of the Chamber of Mines, and involving AngloGold Ashanti, Gold Fields, Harmony, the DME and the National Union of Mineworkers (NUM), to identify affected former mining industry employees in need of care and to improve access to follow-up treatment and compensation systems.

Noise-induced hearing loss (NIHL)

NIHL develops as a consequence of consistent exposure to high levels of noise (in excess of 85dBA) over an extended period of time. The onset of NIHL is painless and progressive, often resulting in a lack of diagnosis until significant hearing loss has occurred.

AngloGold Ashanti has hearing conservation programmes in place at all operations, with three clear objectives:

• the implementation of engineering controls to reduce noise at source;
• the provision of hearing protection devices to protect the wearer from excessive noise levels; and
• medical surveillance to detect any loss of hearing as early as possible.

More than a decade ago, AngloGold Ashanti embarked on a programme to monitor noise levels in the workplace and to implement engineering controls to reduce noise. Initially, emphasis was placed on muffling all pneumatic rockdrills. A programme to silence all underground ventilation fans then began and was completed in 2006. The programme is now targeting other noisy equipment and areas, such as air hoists, water jets and pressure-reducing valve stations.

All at-risk employees undergo regular audiometric testing. Where appropriate, employees are provided with hearing protection devices. In 2008, a selection of hearing protection devices were tested and a range of preferred devices are now available as standard store items.

In 2008, 77 cases of NIHL were compensated across the group (all in South Africa). This is a rate of 2 per 1,000 employees, which is unchanged from 2007.

See case study for an update on: Progress made in dealing with noise management at AngloGold Ashanti in South Africa.

Pulmonary turbeculosis (TB)

In South Africa, pulmonary TB in silica-exposed employees is classified and treated as an occupational illness. The risk of contracting TB is increased by both silica exposure and HIV infection, with these factors acting multiplicatively in increasing relative risk. AngloGold Ashanti’s approach to HIV & AIDS and malaria are dealt with in the separate sections in this report.

TB control remains rigorous within the South African mining industry. Extensive information, education and training of employees is in place to ensure that employees and their supervisors are informed of the symptoms of the disease. Active case-finding using six-monthly digital X-rays undertaken by mobile units at mine sites, and fixed digital X-ray units at the two occupational health centres, remains in place. Detailed investigation, admission to hospital until the risk of infection is past, and World Health Organisation-based Directly Observed Therapy (DOTS) resulted in the achievement of a cure rate which exceeded the WHO target of 85%. Regarding multi-drug resistant (MDR) and extremely drug resistant (XDR) TB, AngloGold Ashanti achieved some level of success, with cure levels above those of state-run facilities.

In 2008, 874 employees were diagnosed with TB, a rate of 26 per 1,000 employees (2007: 923 employees, a rate of 27 per 1,000 employees). The Bill and Melinda Gates Foundation-funded Thibela programme, now in its third year, is running very well and although there is insufficient evidence to accurately assess the results of these interventions in terms of a declining incidence and prevalence of TB, early indications are that there has been a positive effect in the TB incidence rate at TauTona. See the case study: Twelve thousand participate in TB research programme.

While TB is not classified as an occupational illness outside South Africa, surveillance and treatment programmes are implemented internationally. At Obuasi in Ghana, 52 cases of TB were identified. One case of TB was identified at Iduapriem in Ghana, one at Sadiola and Yatela in Mali, one at Geita in Tanzania and one at Brasil Mineração in Brazil. Two cases were identified in the DRC.

Heat and physical fitness

As heat is potentially a concern at all underground operations, heat management protocols and practices are in place and are effective and robust. In 2008, 382 cases of heat illness were reported by the South African operations, most of which (380) were heat-related cramps. Two cases of heat exhaustion were reported and there were no cases of heat stroke during the year.

The South African heat stress management programme was extended to Ghana during the year and it is the intention that this, combined with the installation of large-scale refrigeration plants, will successfully manage the temperature in the working environment, thus resulting in improved working conditions.

Wellness of employees

As, increasingly, the focus in occupational health management has shifted towards a holistic approach to address the overall health and wellness of employees, so the monitoring of medical absence, the medical reasons for the departure of employees, and overall health at exit have all become more important. In a broader sense, a project reviewing the health care, funding and access to health care provision mechanisms for the dependants of lower-level employees was begun during the year and is ongoing.

The overall absentee rate for employees in South Africa (for work and non-work related reasons) was 5.39% in 2008 (2007: 5.36%). (The 2007 figure is slightly higher than that of the previously reported, because sick leave taken over weekends or public holidays is now included.)

The company’s MAEP provides a fair and transparent process to deal with employees who have medical conditions resulting in their being unable to continue in their current occupations. The primary aim of the MAEP is to place employees in occupations where they may continue to work safely and productively, although this is not always possible. In 2008, 1,116 employees were determined to be permanently unfit to continue working in their current occupations, 117 of whom were accommodated in substantive alternative occupations while the remainder were medically discharged. A further 381 employees with early (not yet compensable) indications of occupational illnesses were identified: 161 elected to remain in their current occupations, 50 were placed in lower-risk working environments; and 178 chose to be medically discharged.