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2 Key indicators Reasonable Assurance

  • Following the business combination between AngloGold and Ashanti on 26 April 2004, 65,400 people worked at AngloGold Ashanti (calculated on a monthly average basis post the business combination) in 2004. This figure comprises 50,737 employees and 14,663 contractors. As at 31 December 2003, this number was 55,439. At the time of the business combination, 8,965 permanent employees were employed by Ashanti. As part of the combination of AngloGold with Ashanti, the parties entered into a stability agreement where AngloGold agreed not to implement any retrenchment programmes for two years after the effective date of the business combination (26 April 2004).
    • The Freda Rebecca mine in Zimbabwe (745 employees) was sold on 10 September 2004.
  • No breaches of fundamental rights conventions of the International Labour Organization (ILO). were charged or alleged during 2004 against the company.
  • Employment costs for the group amounted to $863.14 million for 2004.
  • 83.5% of the global workforce is represented by recognised trade unions or catered for by 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 non-supervisory bargaining unit within the company. This means that subscriptions are deducted from non-union members and paid directly into a human and industrial relations fund.)
    • Union recognition agreements or industry collective bargaining arrangements are in place in Mali, Tanzania, Namibia, Ghana, Guinea, Brazil and Argentina.
    • The Australia and the United States operations are non-unionised.
  • Training and development expenditure in the AngloGold Ashanti South Africa region amounted to $28 million in 2004.
    • Adult Basic Education and Training (ABET) is a significant area of development in South Africa in particular, with 5,147 employees enrolled in the programme, at a cost to the company of $1.6 million or R10.4 million in 2004 (2003: $1.7 million or R12.8 million).
    • Training costs amounted to 3.2% of total employee costs for the year.
    • An estimated amount of $950,000 was spent on executive, management and senior management development.
  • 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);
    • HDSAs make up 20% of the board.
  • Efforts to increase the representation of women at all levels continue:
    • 4.5% of all permanent employees are women;
    • 6% of all permanent employees in South Africa are women;
    • 9.8% of all managerial employees are women, while 14% of managerial employees in South Africa are women; and
    • women comprise 6% of the board.
  • A programme to employ indigenous people (rather than expatriates) is in place in the African operations (excluding South Africa). The percentage of indigenous people employed was 97% during the year (90% in 2003 for AngloGold).
  • Foreign migrancy is reported in South Africa in line with the spirit of the Mining Charter. Foreign migrants are defined as employees drawn from outside of the borders of the country and generally from within the South African Customs Unions, plus Mozambique. Many other migrant workers originate from rural areas within South Africa. The percentage of foreign migrant employees (defined in this way) was 37% as at 31 December 2004.
  • Across AngloGold Ashanti, 5,430 employees left employment during the year, representing a turnover rate for the group as a whole of 10%.
  • Following the business combination between AngloGold and Ashanti Limited becoming effective on 26 April 2004, task teams were appointed to ensure the integration of systems and values between the two companies. A number of structural and senior management changes have been effected and the integration between the two companies has now largely been completed.
  • At the Navachab operation in Namibia, the company successfully transferred to owner-mining (as opposed to contractor-mining) during the year.
  • A bursary scheme was implemented in the Mali region during the year in an effort to develop local skills and expedite the localisation programme. Ten top Malian school leavers began graduate studies at the University of Pretoria, South Africa, at the beginning of 2005 in the disciplines of mining, engineering, metallurgy, environment and geology, following a language bridging programme at the end of 2004.
  • A two-year dispute regarding the legal obligation of the Morila Mine in Mali to pay a bonus scheme (prime de rendement) was successfully resolved in November 2004.
  • Closure plans, particularly in respect of reskilling of employees, have progressed at Ergo in South Africa in anticipation of the cessation of operations in early 2005.

Percentage of male to female employed (permanent employees only)
Percentage of male to female employed (permanent employees only)
    
Percentage of male to females in managerial positions
Percentage of male to females in managerial positions

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Our opinion is based on a test of the reliability of the selected data by way of:

In relation to selected data marked with Reasonable Assurance , on which we have provided reasonable assurance:

  • conducting interviews and holding discussions with management, key personnel and/or stakeholders of AngloGold Ashanti limited and assessing data trends;
  • obtaining an understanding of the systems used to generate, aggregate and report the selected data;
  • conducting site visits to test systems and data and inspecting premises where necessary;
  • assessing the completeness and accuracy of the selected data; and
  • reviewing and analysing collected information and effecting re-calculations where considered appropriate.
Composition of global workforce, contractors included 2004 (excl Freda Rebecca)
Composition of global workforce, contractors included 2004 (excl Freda Rebecca)

% women employed (Group)
% women employed (Group)

% of managerial employees who are women (Group)
% of managerial employees who are women (Group)

% of women on board
% of women on board

 


Report to Society 2004