Reporte colombia 2008


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Reporte colombia 2008

  1. 1. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 1 Colombia Country Report 2008
  2. 2. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 2 Colombia Country Report 2008 CONTENTS 3. Message from the country manager 13. Safety and health 4. Corporate profile 15. Employment 6. Review of operations 17. Human rights 7. Mineral Resources and 19. Community Ore Reserves 21. Environment 8. Sustainability footprint 23. GRI scorecard 10. Economic performance 24. Glossary of terms and acronyms 11. Ethics and governance BC. Contact details SCOPE OF REPORT The Country and Operational Reports, of which this is one, are produced annually as a component of AngloGold Ashanti’s Report to Society which, in turn, forms part of a suite of annual reports through which the company communicates with a wide range of stakeholders and business partners. These stakeholders and business partners include shareholders, employees, community members and many other interested parties in all the countries and regions in which the group operates, as well as regional and national governments. The main purpose of the Country and Operational Reports, which are primarily web-based documents available in pdf format, is to provide a greater level of detail on the issues and challenges of sustainable development within each area of operation. However, they also draw on information from the company’s Annual Financial Statements and Mineral Resource and Ore Reserve Report so that the reader forms a complete picture of the operation/s in the country in question. This report has been produced in accordance with the G3 guidelines of the Global Reporting Initiative (GRI) and in alignment with the principles of the International Council on Mining and Metals (ICMM). AngloGold Ashanti is an organisational stakeholder of the former and a member of the latter. This report also conforms to the reporting requirements of the UN Global Compact and the Extractive Industries Transparency Initiative (EITI) both of which are supported by AngloGold Ashanti. The full set of AngloGold Ashanti annual reports is available at or, on request, in hard copy from the contacts detailed at the end of this report. Colombia Country Report 2008 – 2 –
  3. 3. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 3 Message from the Country Manager Since the establishment of a presence in Colombia in 2003, the group’s greenfields exploration programme in this country has matured significantly. In the past few years the emphasis has also shifted from a broad-based approach to one of focus on a few areas, returning mineral right applications in certain areas, and reducing tenement areas. This is a process which we will pursue in 2009, and it is anticipated that the total exploration area held by AngloGold Ashanti and its partners should reduce from 2 million hectares to less than 1.5 million hectares. From 2004 to the end of December 2008 AngloGold Ashanti and its partners had invested roughly $140 million in greenfields exploration in Colombia. At La Colosa we have had success in defining a gold porphyry system, the first significant discovery in the Colombian Andes, where AngloGold Ashanti has first mover status. The Colombian government’s approval of a temporary permit to carry out limited work in anticipation of a feasibility study at La Colosa, is a very encouraging development. Once this is legally binding we will be in a position to resume exploration activities. We remain committed to complying fully with international and national requirements with regard to environmental aspects associated with this work. Moreover, the company has made clear that it will welcome third- party involvement in the process, will share study results and will look for intervention and supervision by the community, the authorities, and NGOs. As a globally reputable mining and exploration company AngloGold Ashanti’s approach to mineral exploration is both modern and responsible. Our principal objective is to discover and bring to account economically viable orebodies in a manner which is socially and environmentally responsible and compatible with the highest international standards. We are committed to develop mines which will contribute to an economic hub in the areas where they are situated, complementing and not displacing existing economic activities, adding to socio-economic stability in the region and improving communities’ standard of living. In line with corporate developments and the group’s commitments to various international protocols with regard to transparency in its dealings with indigenous communities, the Colombian operations’ security arrangements are guided by the Voluntary Principles on Security and Human Rights. As we advance our activities in Colombia, with our joint venture partners and in some cases on our own, we look forward to engaging with legitimate activists and groups to visit our sites to form their opinions about what we are doing well and where we can do better. It is through such interventions that we can improve our interactions with the communities in which we work. Rafael Herz President – AngloGold Ashanti Colombia S.A. Date: 6 March 2009 Colombia Country Report 2008 – 3 –
  4. 4. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 4 Corporate profile – Group AngloGold Ashanti global operations and exploration: 2008 Sovromennie N Veduga Anenskoye Russia Aprelkovskoye Yili Yunlong USA Jinchanggou Cripple China Creek & Victor Sadiola and Yatela (CC&V) Mali Philippines Colombia Guinea Mapawa Area Quebradona Siguiri Ghana Morila Mongbwalu Obuasi DRC Tanzania Gramalote Iduapriem Geita Brazil La Colosa Serra Grande Navachab Namibia Australia Brasil Tropicana SA operations Argentina Mineração Republic of Great Noligwa South Africa Boddington* Mponeng TauTona Sunrise Dam Savuka Cerro Vanguardia Kopanang Tau Lekoa** Moab Khotsong Operations * sold early 2009 ** sale transaction Greenfields exploration announced and alliance areas AngloGold Ashanti Limited, a leading global gold mining company, has a varied portfolio of assets which includes surface, open-pit and underground operations in key gold-producing regions around the world. At the end of 2008, the company had 21 operations located in 10 countries (South Africa, Argentina, Australia, Brazil, Ghana, the Republic of Guinea, Mali, Namibia, Tanzania and the United States) on four continents, together with a substantial project pipeline and a focused, global exploration programme. Greenfields exploration is currently being conducted in Western Australia, Colombia and the Democratic Republic of Congo (DRC), and the group is involved in exploration partnerships and joint ventures in Russia, China and the Philippines. AngloGold Ashanti’s corporate office is in Johannesburg, South Africa. AngloGold Ashanti produced 4.98 million ounces of gold in 2008, of which 2.73 million ounces (55%) came from deeplevel operations and the balance of 2.25 million ounces (45%) from shallower and surface operations around the world. As at 31 December, the group employed 62,895 people, comprising 50,206 employees and 12,689 contractors and had proved and probable ore reserves of 74.9 million ounces of gold. Capital expenditure for the year amounted to some $1.2 billion. Guided by values AngloGold Ashanti remains a values-driven company. Its values, the foremost of which is safety, together with the group’s business principles, continue to guide the actions of the company, its managers and employees, particularly in respect of sustainable development. These values and principles underpin all that the group does and form the basis of its relationships with others – shareholders, employees, communities, business partners, governments and civil society organisations. In this report, performance is measured against these values and principles, and progress recorded. 1.4% 3.1% 3% 5.2% 3% 5.3% 5% 10% 6.7% 8.2% 8.2% 8.7% 30% 11.2% 42% 49% Attributable gold production Shareholders as at March 2009 by country (%) South Africa Tanzania United States 49% Ghana United South Africa 30% Australia States United Kingdom 10% Brazil Argentina Europe 5% Mali Namibia Asia Pacific/Middle East 3% Guinea Ghana 3% Colombia Country Report 2008 – 4 –
  5. 5. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 5 Corporate profile – AngloGold Ashanti in Colombia AngloGold Ashanti’s presence in Colombia dates back to 2003, when it was the first company to establish a systematic grassroots exploration program in Colombia. Since these early days the company has staked a total of 13.1 million hectares of exploration claims countrywide. Of these, 11.2 million hectares have been explored with systematic stream sediment sampling, prospecting and in some areas, airborne geophysics. As a result of this work 423 mineral contracts covering 825,025 hectares are active. Follow-up work ranges from drill target definition through pre-feasibility studies. These prospects are operated either 100% by AngloGold Ashanti or in joint ventures with partners, B2Gold, Mineros S.A, Mega Uranium and Glencore. AngloGold Ashanti has thus far relinquished 10.4 million hectares and plans to complete first stage exploration on the remaining 2.7 million hectares in 2009. To date the programme has generated 42 drill targets of which 24 have been drilled with two resulting in significant discoveries, Gramalote (a JV with Vancouver-based B2B Gold Corp) and La Colosa, with estimated reserves of more than 12 million ounces. Colombia Country Report 2008 – 5 –
  6. 6. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 6 Review of operations Cartagena SOUTH AMERICA Segovia Gramalote Quebradona Antioquia LEGEND La Colosa Bogotá - Town Bogotá La Colosa - Prospect JV Areas B2Gold COLOMBIA Glencore Mineros SA - AGA Tenure Applications 0 250 500 Free Area Granted kilometers Systematic exploration activities in Colombia have generated 294 targets covering 4.2 million hectares, on 408 mineral tenement contracts. Joint venture partner B2Gold Corp. continued resource delineation drilling at Gramalote, first phase drilling at Quebradona and reconnaissance and drill target definition work in three departments in Colombia. Mineros S.A. drilled one target in Antioquia and conducted reconnaissance and drill target definition work at two other targets within the Segovia joint venture in the Antioquia department. Significant results were released from the Quebradona gold-copper porphyry project that are likely to increase the mineral resource at this project. On receipt of all assay and geological data for the AngloGold Ashanti/B2Gold JV Quebradona drilling programme, AngloGold Ashanti may decide on its level of future participation in the project (49%, 51% or 65% interest). LA COLOSA La Colosa is a significant ‘in-house’ greenfields project discovered by AngloGold Ashanti in 2006. The project is 100% owned by AngloGold Ashanti Limited and located 150km west of Colombia’s capital city, Bogota and 30km west of the major town, Ibague, in the department of Tolima. Drilling and resource modelling at La Colosa has rapidly led to the definition of a gold porphyry system with a grade of more than 0.3 g/t Au extending over a strike length in excess of 1,500 metres. AngloGold Ashanti is in possession of a temporary permit for limited exploration work on the La Colosa site, where an inferred resource of 12.3 million ounces has been estimated. This is the first significant gold porphyry discovery in the Colombian Andes, where AngloGold Ashanti has first mover advantage. La Colosa - geology The La Colosa copper-poor porphyry gold system is genetically associated with Miocene porphyritic intrusive centres intruded into Paleozoic schists. The highest grade gold mineralisation is closely associated with a suite of early porphyry intrusions/breccias with potassic and sodic-calcic alteration, 5% pyrite and traces of chalcopyrite and molybdenite. The coherent body suffered little dilution by intermineral/postmineral phases or fault propagation. Late stage alteration causing removal of gold is virtually absent. The early porphyry stage is divided into three phases. The earliest is crowded diorite porphyry (E1) and is volumetrically minor. The two principal early diorite porphyries, both later than the crowded phase, comprise coarse grained (E2) and fine-grained (E3) varieties. The coarse-grained phase is characterised by prominent plagioclase phenocrysts about 0.5cm across, whereas the fine-grained phase contains homogeneously distributed, millimetre-sized plagioclases. Colombia Country Report 2008 – 6 –
  7. 7. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 7 The inter-mineral-stage diorite porphyry intrusions are divided into two phases: coarse-grained (I1) and fine-grained (I2), both of which are texturally similar to the two main early-stage phases. The late-mineral dacite porphyry is typified by rounded quartz phenocrysts, locally up to 1cm across. Contacts between porphyry phases are commonly characterised by broad zones of intrusion breccias, i.e. a concentration of xenoliths of earlier porphyry in a later one. The texture of the breccias is commonly diffuse implying varied degrees of assimilations of the earlier by later phases. GRAMALOTE The Gramalote project (a JV with B2Gold Corp) is located about 120 km north east of Medellin, the capital of the Antioquia department. During 2008, B2Gold drilled 30,131m on the global Gramalote from project, including drill investigations at Gramalote Ridge (mostly Mineral Resource infill work), La Trinidad (7,019m in 20 holes), El Balzal, La Reina, El Topazio and La Malasia. Gramalote - geology The Gramalote area is underlain by medium to coarse-grained biotite +- hornblende tonalite and granodiorite of the Paleocene to Cretaceous Antioquian batholith. Tonalite from the Gramalote exploration adit gave zircon ages of 59+1.2ma. Magmatism, structural events and mineralisation are intimately related. The location of drill targets is controlled by N70-75E striking steeply south-east dipping transfer zones developed between two sub-regional faults (Rio Nus, Quebrada Socorro). On the local prospect scale, extensional domains with quartz veinlets and compressional domains with shear zones have formed. RESERVES AND RESOURCES IN COLOMBIA Mineral Resources (attributable) inclusive of Ore Reserves Contained Contained as at 31 December 2008 Resource Tonnes Grade gold gold category million (g/t) tonnes million oz Colombia Measured – – – – Indicated – – – – Inferred 409.77 1.01 415.45 13.36 Total 409.77 1.01 415.45 13.36 Colombia Country Report 2008 – 7 –
  8. 8. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 8 Sustainability footprint This section illustrates the group’s key sustainability issues during the cycle of mining and processing gold. Impact on restricted areas – biodiversity Human rights issues Consultation with communities, including interaction with artisanal and small-scale miners (ASM) Dealing with regional health threats Fair employment practices and skills development Human rights and security Safety and health Efficient use of resources – water, energy and other natural resources Reducing carbon footprint, preventing pollution Human rights and security 2. MINING: ACCESSING THE OREBODY There are two types of mining which take place to access the orebody: • Underground mining: a vertical or decline shaft is sunk deep into the ground to transport people and mining materials to underground levels from which the orebody is accessed through horizontal tunnels known as haulages and cross-cuts. Further on-reef development is then undertaken to open up the orebody so that mining can take place. • Open-pit mining: in this situation the ore lies close to surface and can be exposed for mining by “stripping” the overlying barren material. 1. FINDING THE OREBODY 3. MINING: REMOVING THE ORE AngloGold Ashanti’s greenfields • In underground mining, ore is drilled and blasted, exploration group identifies prospective and brought to the surface. gold deposit targets and undertakes • In open-pit mining, drilling and blasting may also exploration on its own or in conjunction be necessary to break the ore; excavators then with joint venture partners. Worthwhile load the material onto the ore transport system discoveries undergo a well structured which is predominantly haul trucks. and intensive evaluation process before a decision is made to proceed with developing the mine. Interaction with artisanal and small-scale miners Environmental footprint Minimising emissions to air (land use/biodiversity) Land disturbance Colombia Country Report 2008 – 8 –
  9. 9. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 9 The process of producing gold can be divided into the following main activities: • Finding the orebody • Processing • Mining – Creating access to the orebody • Refining • Mining – Removing the ore • Mine site rehabilitation • Mining – Transporting the broken material to plants for treatment Rehabilitation and achieving closure Minimising emissions and Post-closure monitoring preventing pollution Engaging with communities Efficient use of resources Management of cyanide 4. MINING: TRANSPORTING Reducing carbon footprint 6. REFINING BROKEN MATERIAL TO The doré bars are transported to PLANTS FOR TREATMENT a precious metal refinery for further processing. In this process gold is • Underground ore is brought to the upgraded to a purity of 99.5% or surface by a combination of horizontal greater for sale to a range of final and vertical transport systems. Once on users. High purity gold is referred to as surface the ore is usually transported to “good delivery” which means that it the processing facilities by surface rail meets the quality standards set by the or overland conveyors. London Bullion Markets Association • In open pit operations the haul trucks and gives the final buyer assurance deliver the ore directly to the processing that the bar contains the quantity and facilities. purity of gold as stamped on the bar. 5. PROCESSING 7. MINE-SITE Comminution involves the breaking up of ore into small REHABILITATION particles so that the contained gold minerals are Once mining has been completed, exposed. This is undertaken by a combination of multi- operations are ‘closed’ and rehabilitation stage crushing and milling circuits. Recovery of gold can activities begin to return the land to a then commence, depending on the nature of the gold productive state. (Rehabilitation is the contained in the ore. process of reclaiming mined land to the Free milling and oxidised refractory ores are processed condition that existed prior to mining or for gold recovery by leaching the ore in agitated (stirred) to a pre-determined post-mining use.) tanks in an alkaline cyanide leach solution. In this Planning for this process is undertaken process, ore is crushed and heaped on an impervious or during the life of mine. lined leach pad. Low strength alkaline cyanide solution is irrigated over the heaped pad for periods of up to three months. The dissolved gold-bearing solution is collected from the base of the heap and transferred to carbon-in-solution (CIS) columns where the gold cyanide complex is adsorbed onto activated carbon. Gold which has loaded (adsorbed) onto activated Minimising emissions (air quality) carbon is recovered by a process of re-dissolving the gold from the activated carbon (elution), followed by precipitation in electro-winning cells and subsequent smelting of the precipitate into doré bars. At some operations, by-products are generated, such as silver, sulphuric acid and uranium. Local economic development and sustainable social investment Colombia Country Report 2008 – 9 –
  10. 10. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 10 Economic performance KEY DEVELOPMENTS • Continued restructuring to focus on new company strategy. • New company vision, mission and values developed. • Rising input costs have significant effect on total cash costs across the industry. • Significant payments to government, reported in line with the guidelines of the Extractive Industries Transparency Initiative (EITI), a coalition of governments, companies and civil society. KEY ECONOMIC IMPACTS Key economic impacts $000 Amounts paid to employees for salaries, wages and other benefits – Taxation Taxation paid in 2008* 277 Provision for taxation* 58 Withholding tax (STFC, royalties, etc)** 1,171 Other indirect taxes and duties 239 VAT paid 327 VAT refunded – Employee taxes and other contributions** 708 Property tax 332 Other (tenement fees) 2,934 Exploration expenditure 27,800 Corporate social investment expenditure – * Includes capital gains tax ** Includes remittance made by government but borne by employees as individual taxation, eg PAYE, UIF. As a member of the EITI, AngloGold Ashanti is committed to transparency in the disclosure of payments to and receipts from governments. Investing in the future In 2008, AngloGold Ashanti invested $27.8 million in greenfields exploration activities in Colombia. $56 million has been allocated to a pre-feasibility study at La Colosa in 2009. Over the next three to four years an investment of about $200 million is needed to increase knowledge of this significant gold discovery. Such an investment should create roughly 700 direct jobs and about three times that number in indirect employment opportunities. Colombia Country Report 2008 – 10 –
  11. 11. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 11 Ethics and governance KEY DEVELOPMENTS • Amendments made to Conflict of Interest and Gifts, Hospitality and Sponsorship policies during the year. • Voluntary compliance with a number of organisations. ANGLOGOLD ASHANTI VALUES In respect of ethics and governance, the AngloGold Ashanti values state that: We are accountable for our actions and undertake to deliver on our commitments. We are focused on delivering results and we do what we say we will do. We accept responsibility and hold ourselves accountable for our work, our behaviour, our ethics and our actions. We aim to deliver high performance outcomes and undertake to deliver on our commitments to our colleagues, business and social partners, and our investors. GOVERNANCE AngloGold Ashanti remains committed to the highest standards of corporate governance. Corporate governance is the responsibility of the Board of Directors as a whole, with some authority delegated to the Audit and Corporate Governance Committee of the board and the management Disclosure Committee. Further details on corporate governance may be found in the Annual Report at Legal issues The drill programme at La Colosa was suspended in February 2008 owing to unexpected and additional environmental requirements relating to the status of the forest reserve status of the area. This was followed in 2009 by the Colombian government’s decision to award exploration permits covering a portion of the company’s La Colosa concession which will allow the resumption of exploration and further work on the pre-feasibility study. The company will co-operate closely with local communities and NGOs in developing a sustainable development plan to benefit all stakeholders. Voluntary compliance In addition to its regulatory obligations, AngloGold Ashanti firmly believes in self-regulation and holds the view that local and international industry leaders should establish robust standards against which companies should perform and be measured. The group is actively involved in a wide range of organisations and initiatives, and is either a member of or signatory to the organisations listed below. It actively supports their aims and objectives, and participates in their development and functioning. • United Nations Global Compact (UNGC) • International Council on Mining and Metals (ICMM) • Responsible Jewellery Council (RJC) • Global Reporting Initiative (GRI) • Extractive Industries Transparency Initiative (EITI) • International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold (Cyanide Code) • Voluntary Principles on Human Rights Political donations Political donations are subject to full disclosure. A subcommittee comprising independent non-executive members of the board has been set up specifically to deliberate on any political donations. Political donations were made by operations in Brazil and the United States. The Brazilian operations contributed $476,415 (BRL805,000) towards political parties in the municipalities in which its operations are located. In the United States both the Democratic ($15,150) and Republican ($11,1150) parties received donations in accordance with the Colorado campaign finance laws. Colombia Country Report 2008 – 11 –
  12. 12. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 12 Ethics and governance Policies and procedures AngloGold Ashanti has a number of policies and procedures in place to ensure that employees are aware of what is expected of them and conform as appropriate. Employee induction in respect of these policies and procedures is mandatory. Some of the policies in place are discussed below: • The Market Abuse (Insider Trading) Policy applies to employees and directors and effectively prohibits them from trading shares when they have access to unpublished, material information concerning the company or its operations. • The Gifts, Hospitality and Sponsorship Policy aims to ensure that no supplier receives undue favour and that employees do not compromise their integrity and impartiality by the receipt or giving of gifts. The policy was amended during the year to include sponsorships. • The Conflict of Interest Policy aims to ensure that the company’s commercial transactions take place in a manner that ensures the integrity and fairness of the company’s contract and tender processes. The policy applies to all employees and was amended during the year to include the coherent and comprehensive response that must be made once a conflict has been declared. Code of Ethics and confidential reporting (whistle-blowing) To comply with the obligations of the Sarbanes-Oxley Act and the King Report on Corporate Governance, 2002, and in the interests of good governance, the company has systems and procedures to introduce, monitor and enforce its ethical codes (including risk related to corruption at all operations). The whistle-blowing policy and process encourages employees and other stakeholders confidentially and anonymously to report acts of an unethical or illegal nature that are prejudicial to the company’s interests and compromise its values. The codes and the whistle-blowing policy are available on the company’s website at 08/governance.policies.htm. Reports may be submitted via the intranet, internet, telephone, fax and post, and an initiative is under way to implement text messaging as a further medium for reporting. All reports made in terms of the whistle-blowing policy are administered by a third party, Tip-Offs Anonymous, to ensure confidentiality and anonymity. The information is relayed through a reporting structure to an independent official and internal audit for investigation. Feedback on reports is given when requested. A report is provided to the Audit and Corporate Governance Committee on a quarterly basis. Colombia Country Report 2008 – 12 –
  13. 13. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 13 Safety and health KEY DEVELOPMENTS • Re-evaluation of the group’s mission, vision and values, and affirmation of safety and health as the group’s first value. • Start of a safety and health transformation project to develop a strategic ‘blueprint’. • Significant improvement in safety performance. FIFR at a record low level but, regrettably, 14 people died in accidents at the group’s operations. An 11% reduction in LTIFR for the group. • Excellent progress with OHSAS 18001 implementation, after launch in May 2008. • Occupational health and safety system and practices protocol developed A key part of the company’s safety initiative in 2008 was the assertion that safety is the group’s first value. This was the focus of the extensive safety initiative conducted during the year to ensure that this value is both understood by all and put into practice at all levels within the group. The following is an extract from AngloGold Ashanti’s statement of values: Safety is our first value We place people first and correspondingly put the highest priority on safe and healthy practices and systems of work. We are responsible for seeking out new and innovative ways to ensure that our workplaces are free of occupational injury and illness. We live each day for each other and use our collective commitment, talents, resources and systems to deliver on our most important commitment….to care. Management and accountability Every AngloGold Ashanti manager and employee takes responsibility for health and safety; and all strive to create workplaces that are free from occupational injury and illness. The group is committed to complying with all relevant occupational health and safety laws and, in the absence of such standards, to adopting leading practice. Although health and safety is regarded as a prime responsibility of management (from executives down to supervisors), AngloGold Ashanti strives for employee involvement and consults with employees to gain their commitment. All the necessary resources – a system of medical surveillance and the provision of protective equipment, for example – are made available to enable compliance with the group’s safety and health principles. Deliberate breaches in standards and procedures are not tolerated and risk assessments are conducted to anticipate, minimise and control occupational hazards. AngloGold Ashanti implements safety and health management systems based on internationally recognised standards and assesses their effectiveness through periodic audits. Performance in terms of safety and health objectives is measured and monitored on a regular basis. AngloGold Ashanti communicates openly on safety and health issues with employees and other stakeholders. Safety overview A well-developed safety and health communications programme is in place in Colombia, using media such as briefings, electronic communications and bulletins. Further improvements are planned for 2009 in raising employee participation in the occupational health and safety committee, and also raising awareness of safety issues among employees. Emergency response procedures during the year focused on identification of risks, a vulnerability assessment and the election of an emergency brigade who receive training in these procedures. Review The OHSAS 18001 safety and health management standard is in place at the Colombian exploration sites after its launch in May 2008. A compliance and performance review for system certification is planned for 2009 with the System Management Review in December 2009. Colombia Country Report 2008 – 13 –
  14. 14. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 14 Safety and health At La Colosa project local staff are responsible for implementing the OHSAS model. At the remaining greenfields projects a member of the occupational health and safety management team guides the identification of potential health and safety risks and management thereof. No fatal injuries were reported during 2008. The LTIFR was reduced from 36.27 in the previous year to 12.40. Although this number remains high, the reduction does reflect the benefits of intensive safety campaigns, which will be continued in the year ahead. The main causes of lost time injuries in the year were unsafe environmental conditions. Staff in Colombia receive on average 2.36 hours training in safety and health management per year. HEALTH A formal medical surveillance programme is in place at the Colombian projects. A basic health facility with an auxiliary nurse provides first aid care in emergencies and also sees to implementing preventative actions. Improvements are planned to the La Colosa medical facility in 2009. This will include aligning the emergency management plans with the corporate and local municipal guidelines. The 2009 year will also see the implementation of an epidemiological surveillance programme for muscle-skeletal cumulative trauma. Colombia Country Report 2008 – 14 –
  15. 15. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 15 Employment KEY DEVELOPMENTS • Revision of the company’s vision and values, and their communication to employees. • Development of the System for the Management of People, based on the Requisite Organisation model. • Restructuring of responsibilities and hierarchy in line with corporate strategy. • Implementing a company-wide approach to collective bargaining. ANGLOGOLD’S VALUES AngloGold Ashanti’s values, as reviewed and redefined in 2008, are underpinned by the philosophy that ‘People are our business... our business is people’. The group’s values specifically state: We treat each other with dignity and respect. We believe that individuals who are treated with respect and who are entrusted to take responsibility respond by giving their best. We seek to preserve peoples dignity, their sense of self-worth in all our interactions, respecting them for who they are and valuing the unique contribution that they can make to our business success. We are honest with ourselves and others, and we deal ethically with all of our business and social partners. We value diversity. We aim to be a global leader with the right people for the right jobs. We promote inclusion and teamwork, deriving benefit from the rich diversity of the cultures, ideas, experiences and skills that each employee brings to the business. Giving life to this are the group’s undertakings or business principles related to the group’s labour practices. Management systems and accountability Operational restructuring has been undertaken across AngloGold Ashanti over the past year to align the company’s structure with the revised corporate strategy and the new executive team, and to bring the leadership of the operations closer to the company. Key developments here include the appointment in late 2007 of three operational heads (one in Africa, one in Australia and one in the Americas) and the separation of divisional responsibility in Africa. Given AngloGold Ashanti’s renewed vision and values and revised company strategy, a complete review of the group’s human resources management systems and structure, called the System for the Management of People (SMP) is being undertaken. This is considered a strategic imperative within the context of a changing world of work and the current socio-economic climate. Employment practices AngloGold Ashanti is committed to upholding the Fundamental Rights Conventions of the International Labour Organisation (ILO), ensuring the implementation of fair employment practices by prohibiting forced, compulsory or child labour. It is also committed to creating workplaces that are free of harassment and unfair discrimination. AngloGold Ashanti’s employment policy: • recognises and promotes diversity within the company; • acknowledges that women have an equal right to participate in mining as a career; and • regards the employment of locals and the replacement of expatriate employees as a priority. The group’s policy encourages the employment of locals and replacement of expatriate employees over time through skills transfer programmes and the career development of citizens of the country. Legislation in Colombia requires that 90% of all employees and 80% of qualified professional employees be Colombian nationals. Colombia Country Report 2008 – 15 –
  16. 16. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 16 Employment Employment review A total of 476 people were employed in Colombia in 2008 (161 permanent employees and 315 contractors). A total of 64 women are employed in Colombia, representing 27% of senior and middle management and 35% of the total complement. Labour turnover at just over 1% was low in Colombia, compared to 8% for the group as a whole. Expatriates account for 4.3% of permanent employees and 1.8% of senior appointments. Freedom of association and collective bargaining AngloGold Ashanti recognises that freedom of association is a fundamental right of all employees and contractors, and adheres to collective bargaining agreements with due regard to the relevant legislation of a particular country. In Colombia labour legislation makes provision for the rights of freedom of association, and protection of equal rights. However, the exploration staff in Colombia are not unionised. Training and development In line with group emphasis on training and development of people, the Colombian operations are currently developing a training system. In 2008 a total of $145,790 was spent on training. A formal policy on scholarships and bursaries is in place in support of developing a mining/exploration culture in the country. A total of 12 people received study support during the year in areas such as social development, negotiation skills and in geology. Benefits and conditions of service AngloGold Ashanti aspires to be the employer of choice in the regions and countries in which it operates, offering attractive and fair remuneration practices and conditions of service. The company’s employee remuneration exceeds the legislated minimum wage requirements in the various states where it operates. Management in Colombia is currently devising appropriate remuneration policies and procedures. The company provides health care to employees and their dependants. Employees are entitled to maternity and paternity leave and receive life insurance and disability cover. Colombia Country Report 2008 – 16 –
  17. 17. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 17 Human rights KEY DEVELOPMENTS • A vice president for global security appointed. • Global security review undertaken to develop a framework for the management of security issues in line with Voluntary Principles on Security and Human Rights. • Escalating tension between the company and artisanal and small-scale miners, and illegal miners. A number of incidents reported during the year, three involving shootings. Respect for human rights is a key principle in many of the policies and practices that are integral to the group’s sustainability efforts, and are entrenched in the constitutions and legislation of many of the countries in which the group operates. Oversight and implementation of various practices in this area are largely the function of line managers as they are the direct interface between the company and employees and the company and communities. Human rights cut across a range of disciplines, from safety and health, community and environment, to human resources, ethics and governance. The group continues to support both the UN Global Compact and the Voluntary Principles on Security and Human Rights. A major development during the year was the appointment of a vice president for global security, with a specific remit to ensure that all security operations and practices take due cognisance of human rights. Fundamental human rights conventions AngloGold Ashanti is committed to upholding the basic labour rights captured in the Fundamental Rights Conventions of the International Labour Organisation (ILO). Specifically, it seeks to ensure the implementation of fair employment practices by prohibiting forced, compulsory or child labour and implementing these practices through country, operation and shaft level recognition and collective bargaining agreements, and through disciplinary, grievance and non-discrimination agreements and codes. No breaches of fundamental rights were alleged, nor were any charges brought against the company in connection with these during the year. No operations are deemed to be at specific risk in this regard. Policies are in place at all operations to protect employees from prejudice and, in some countries, to promote the advancement of certain groups of employees. Discrimination, including racial and sexual harassment and discrimination against the disabled, is prohibited in terms of the company’s business principles, as well as by legislation in most of the countries where AngloGold Ashanti’s operations are situated. In many of the countries the rights and promotion of indigenous peoples, of the historically disadvantaged, and of women, are provided for in legislation and adopted and followed by the company. In Colombia AngloGold Ashanti has signed agreements with the official security forces for protection in certain areas. These agreements are inclusive of the principles enshrined in the Voluntary Principles on Security and Human Rights. Human rights training AngloGold Ashanti has initiated human rights training – for security personnel in particular – at all operations where this is required. Improving security practice in line with the Voluntary Principles on Security and Human Rights Securing its assets and ensuring the safety of its employees is not only a right of the company, but a responsibility – to employees, to their communities, to shareholders and to the countries that have entrusted the exploitation of their natural wealth to AngloGold Ashanti. Colombia Country Report 2008 – 17 –
  18. 18. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 18 In these countries AngloGold Ashanti has to work closely with the state to be able to exercise its legal title to its operations, while at the same time being mindful of traditional values, norms, and access to land. Given the increasingly complex situations relating to security on the one hand, and the need to ensure compliance with the UN Global Compact and the Voluntary Principles, the company undertook a global security review between May and July 2008 to assess the existing security measures, needs and the way in which the various disciplines can work together. The review was undertaken by Mike Faessler, formerly Director of AngloGold Ashanti’s security operations in Colombia, and now Vice President of Global Security. Colombia Country Report 2008 – 18 –
  19. 19. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 19 Community KEY DEVELOPMENTS • Integration of community and environmental disciplines at a corporate level. • Management standards on social investment, cultural heritage and sacred sites, stakeholder engagement, indigenous peoples, artisanal and small-scale mining (ASM), land use management, grievances and complaints and land acquisition being developed in support of the group’s Community Affairs Management Framework. • Increased demand from local communities for the provision of basic services such as water, roads and electricity. One of the group’s six core values is: The communities and societies in which we operate will be better off for AngloGold Ashanti having been there. We uphold and promote fundamental human rights where we do business. We contribute to building productive, respectful and mutually beneficial partnerships in the communities in which we operate. We aim to leave host communities with a sustainable future. The group gives effect to its values through its business principles. These undertakings in respect of communities serve also as the group’s policy, and guide regional and operational policies and practices. Community-related matters are addressed at Board level by the Safety, Health and Sustainable Development Committee. During 2008, the community affairs and environmental teams were integrated, reflecting the interdependence of these issues from both a strategic and operational perspective. This team is responsible for developing company policy, and providing guidance and processes to assist operations in acting in accordance with the group’s business principles. A corporate level Community and Environment Vice President has been appointed to head up the discipline. Further refinement of the Community Affairs Management Framework continued during the year. An additional module on human rights and security is being refined, in support of the new security discipline and in compliance with the Voluntary Principles on Security and Human Rights. In view of the integration of the community and environmental aspects of the business from a management perspective, a decision was taken late in 2008 to include community aspects into the existing ISO14001 management systems in place at all operations. It is envisaged that this process will take two to three years. AngloGold Ashanti is committed to engaging with NGOs, community-based organisations (CBOs) and other stakeholders on issues of mutual concern. Underpinning its strategy is the group’s view that it is desirable that the various parties engage directly based on mutual recognition of each other’s legitimate right to operate. Specific structures are being put in place to deal with grievances and legacy issues. The group has continued during the year with its strategy of building relationships with key stakeholders, monitoring emerging trends, being proactive where possible and responsive where issues arise unexpectedly. Relative to prior years, fewer NGO reports and campaigns on the company’s activities have been witnessed over the past year. Managing community relations Community relations in Colombia are handled by the Department of Social Development led by a social development manager. Each of the projects have a national field co-ordinator and social supervisors. The company encourages community members to raise any matters of concern with the appropriate bodies. Activities are overseen by the Community Relations and Social Development Manager at the corporate office in Johannesburg. The operation has developed policies for Public and Community Affairs and for Sustainable Development Projects which were implemented in 2008. Employees are encouraged to take up leadership positions within their communities. In some instances, the mine has recruited community members to serve as facilitators in negotiations with communities. Colombia Country Report 2008 – 19 –
  20. 20. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 20 Community Regular contact is maintained with representatives of rural communities, landowners, local government, regional government and local NGOs, mainly through the Committee of Social and Environmental Responsibility, which has been established in each municipality where there is an exploration project under way. Community groups and organisations are kept informed about progress, through workshops and meetings, with respect to the progress of exploration projects. They are also involved in identifying social programmes to be implemented. As exploration projects get under way, AngloGold Ashanti carries out an economic study to determine the potential impacts of mining, local development and work opportunities for local people. Artisanal and small-scale mining Although the presence of artisanal and small-scale mining (ASM) at AngloGold Ashanti’s exploration sites in Colombia are considered as a potential challenge, AngloGold Ashanti’s activities in the country have never led to displacement or relocation of Afro-Colombian minorities. AngloGold Ashanti has in fact assisted in legalising small miners and mining co-operatives, and in two instances established joint ventures with two co-operatives, Miraflores and San Martin de Loba. (See case study in the Report to Society 2006: AngloGold Ashanti’s approach to artisanal and small-scale mining, at In Colombia, a ‘Good Friends and Neighbours’ policy has been developed that provides for the establishment of contracts and collaborative agreements, in the interests of promoting legal and commercial mining activity. At the heart of the programme is the allocation of ground to ASM miners, giving them legal mining title over the property. In return for this, the miners have to register in terms of the local mining regulatory framework and comply with some basic health and safety and environmental requirements. Colombia Country Report 2008 – 20 –
  21. 21. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 21 Environment KEY DEVELOPMENTS • Further development of the group’s position on climate change, including the quantification of its carbon footprint and the identification of potential Clean Development Mechanism (CDM) projects as part of the group’s business case for greenhouse gas (GHG) emission reductions. • Start of external review process of the group’s closure planning and liabilities. • Good progress with the implementation of the International Cyanide Management Code. • Improved environmental reporting contributed to more accurate incident tracking. • AngloGold Ashanti ranked third in the Carbon Disclosure Project’s Carbon Intensive Sector Leadership Index of the largest 100 companies listed on the JSE. We respect the environment We are committed to continually improving our processes in order to prevent pollution, minimise waste, increase our carbon efficiency and make efficient use of natural resources. We will develop innovative solutions to mitigate environmental and climate risks. Management Day-to-day responsibility for environmental issues lies with mine and project management; the group’s corporate environment team provides strategic guidance and monitors performance. Site-based and regional environmental specialists contribute to operational environmental functioning and combine to form the Environmental Steering Committee at a group level. In Colombia an environmental manager is charged with policy and programmes. Each drilling programme has an environmental co-ordinator. The environmental manager reports to the HSE director, who reports directly to the general manager. The environmental function is an essential line function at the exploration sites. Local Colombian environmental policies are guided by corporate policy. External awards In 2008 AngloGold Ashanti was ranked third in the Carbon Disclosure Project’s Carbon Intensive Industries Leadership Index of the largest 100 companies listed on the JSE Limited in South Africa. Compliance AngloGold Ashanti seeks to comply with environmental legislation in the regions where it has a presence. Mining and exploration activities which may impact the environment are subject to the umbrella environmental law, the 99th law of 1993. The drilling programme at La Colosa was suspended in February 2008 as the initiative to create special zones for forest reserves gained momentum. This was followed in May 2009 by the authorities granting AngloGold Ashanti a temporary permit to continue limited exploration work. Once this has translated into a formal permit award, the company will resume exploration and further pre-feasibility work. Environmental management system All AngloGold Ashanti mining operations have Environmental Management Systems (EMS) certified to the ISO14001 standard. The Colombian exploration programme is working towards implementation as part of a regional management system. Review Risk management exercises were undertaken in September at La Colosa and in and November at Bogota. The major risks identified relate to water and forest management and relationships with NGOs. Programmes are being developed to improve access to water and water quality, while the company is investigating reforestation and compensation measures. Research programmes are being developed with communities, tertiary educational institutions and NGOs. Audits, in combination with joint venture partners were conducted to standardise processes and bring them into line with AngloGold Ashanti’s policies. Colombia Country Report 2008 – 21 –
  22. 22. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 22 Environment Awareness, education and communication The company’s initiatives to train contractors and community members in environmental awareness include the development of a reforestation programme, waste management programmes to deal with both solids and liquids. A formal stakeholder communication programme has been developed. Meetings are held monthly or more frequently, with members of local and regional authorities and associations and NGOs. Subjects generally cover environmental risks and the management thereof during the various stages of exploration and operation. During the year water quality was an issue raised by communities. Cyanide usage In line with the global mining industry, AngloGold Ashanti has done much over the past 10 years to minimise risk associated with the use of cyanide. AngloGold Ashanti managed sites are signatories to the International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold (the Cyanide Code), to which the group was a founding signatory. This code is a voluntary industry initiative developed under the auspices of the United Nations Environment Programme (UNEP) specifically to promote responsible management of cyanide used in gold mining, to enhance the protection of human health, and reduce the potential for adverse environmental impacts. As an exploration area, Colombia is not as yet a signatory to the Cyanide Code. Climate change AngloGold Ashanti believes that climate change presents both physical and financial risks, as well as opportunities for the company. A three-part study, begun in greater detail in September 2008, includes: assessing the greenhouse gas emissions (GHG) footprint of all AngloGold Ashanti operations using 2007 as the benchmark year; climate change related risk exposure: various risk categories (financial and investment, physical, and legal/regulatory) are being considered; and the identification of opportunities to expand on energy savings and efficiency projects and to reduce dependence on fossil fuels. This component will include opportunities to minimise the group’s GHG footprint, and to realise carbon credits and trading to offset the costs of these opportunities and to contribute to the company’s bottom line. Given the group’s focus on delivering value, the approach taken was that the process should identify multiple and highly probable Clean Development Mechanism (CDM) projects. For AngloGold Ashanti, carbon trading presents a particular opportunity; around 84% of the companys gold production comes from developing countries, which are eligible for CDM projects. The Colombian operations are incorporating climate change criteria into their work plans for development and exploration projects. The La Colosa pre-feasibility study in particular will review a number of options to reduce energy consumption, use cleaner sources of electricity and reduce the greenhouse gas footprint of the project. In addition, a number of options are under review to offset the potential impacts of the project in terms of biodiversity and climate change. Colombia Country Report 2008 – 22 –
  23. 23. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 23 GRI scorecard Content index GRI Guidelines Location in Information available Number Content this report elsewhere contributed Profile 1. Strategy and analysis Pages 3 and 8, 9 L G 2. Organisational profile Pages 4 and 5 L G 3. Report parameters Report scope and boundary Page 2 G GRI content index Page 23 G Assurance G 4. Governance, commitments and engagement Commitments to external initiatives Page 11 G K Stakeholder engagement Pages 19 to 20 G K 5. Performance G Economic performance indicators Aspect: Economic performance Page 10 L G Aspect: Market presence G Aspect: Indirect economic impacts G Environmental performance indicators Aspect: Materials Page 22 G K Aspect: Energy G K Aspect: Water G K Aspect: Biodiversity G K Aspect: Emissions, effluents and waste Page 22 G K Aspect: Products and services G K Aspect: Compliance Page 21 G K Aspect: Overall G Social performance indicators G Labour practices and decent work G Aspect: Employment Pages 15 to 16 G Aspect: Labour/management relations Pages 15 to 16 G Aspect: Occupational health and safety Pages 13 to 14 G Aspect: Training and education Page 16 G Aspect: Diversity and equal opportunity G Human rights G Aspect: Investment and procurement practices G Aspect: Non-discrimination Page 17 to 18 G Aspect: Freedom of association and collective bargaining Page 16 G Aspect: Child labour G Aspect: Forced and compulsory labour Pages 17 to 18 Aspect: Security practices Pages 17 to 18 Aspect: Indigenous rights Page 15 G Society G Aspect: Community Pages 19 to 20 G Aspect: Corruption Pages 11 to 12 G Aspect: Public policy Pages 11 to 12 G Aspect: Anti-competitive behaviour G Aspect: Compliance G Product responsibility G Aspect: Product and service labelling G Aspect: Marketing and communications G Customer privacy G Key: L Annual Financial Statements 2008 G Report to Society 2008 K AngloGold Ashanti website - Colombia Country Report 2008 – 23 –
  24. 24. Colombia report 08 ES 6 Aug 09 9/4/09 2:25 PM Page 24 Glossary of terms and acronyms A ASM: artisanal and small-scale miners. Average number of employees: average attributable number of both employees and contractors employed during the year; contractors are defined as workers in employment for longer than one year. B By-products: any products that arise from the core process of producing gold, including silver, uranium and sulphuric acid. C Capital expenditure: total capital expenditure on mining assets to both maintain and expand operations. CDM: Clean Development Mechanism CIS: carbon-in-solution, a gold recovery process. Comminution: process of breaking up ore to make gold available for treatment. Cyanide Code: International Cyanide Management Code for the manufacture, transport and use of cyanide in the production of gold. D dBA: decibels – unit of sound measurement. E EIA: Environmental Impact Assessment. EITI: Extractive Industries Transparency Initiative. Elution: process of re-dissolving gold from activated carbon. F FIFR: Fatal Injury Frequency Rate – the number of fatal injuries per million hours worked. G Global Compact: United Nations Global Compact (derived from the Universal Declaration of Human Rights; the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work; the Rio Declaration on Environment and Development; and the United Nations Convention Against Corruption). Grade: the quantity of gold contained within a unit weight of gold-bearing material per tonne of ore (oz/t), or grams per metric tonne (g/t). GRI: Global Reporting Initiative – a multi-stakeholder process and independent institution the mission of which is to develop and disseminate globally applicable sustainability reporting guidelines. H Hanging wall: upper wall or roof of mining area in underground mining. I IAPs: interested and affected parties. ICMI: International Cyanide Management Institute. ICMM: International Council on Mining and Metals. ILO: International Labour Organisation, a UN agency for the promotion of social justice and human and labour rights. International Cyanide Management Code: Industry standard for cyanide management – developed under the auspices of UNEP. IRMS: Integrated Risk Management System. Colombia Country Report 2008 – 24 –