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Business strategy | Context and strategy - AngloGold Ashanti Annual Reports 2011
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Business strategy

TOWARDS A GLOBAL ORGANISATION

Strategic focus areas

Five focus areas for the company’s business strategy guide achievement of the company’s vision, balancing the various imperatives necessary to generate targeted returns:

People are the business

Providing the leadership and the supporting management processes to ensure that we have the right people, in the right roles, doing the right work, to deliver against our goals.

Maximise margins

Managing revenues to ensure that full value is realised from our products by delivering a quality product and managing costs to protect margins and returns.

Manage the business as an asset portfolio

Optimising asset and project portfolios to meet or exceed specified rates of returns. To achieve this, each asset is regularly reviewed and ranked in absolute terms and relative to its peer group.

Grow the business

Developing a range of options for growth, including greenfield and brownfield exploration, new opportunities promoting organic growth, valueaccretive merger and acquisition opportunities and maximising the value of commodities other than gold within our portfolio.

Embrace sustainability principles

Developing business and social partnerships based on mutual value creation, while maintaining a focus on ensuring the safety and wellbeing of employees and managing environmental and other impacts.

The basis of AngloGold Ashanti’s strategy is its vision, mission and values. The company’s vision is to become the leading mining company and its mission is to create value for shareholders, employees, and business and social partners by safely and responsibly exploring, mining and marketing gold. Although the primary focus is gold, AngloGold Ashanti will pursue value-creating opportunities in other minerals where it can leverage its existing assets, skills and experience to enhance the delivery of value.

An important aspect of the company’s strategy is, therefore, that it seeks to extend value creation beyond shareholders to include employees and communities in which the company operates. AngloGold Ashanti’s values, as shown at the beginning of this report, reflect the nature of this shared vision and guide the way it operates. These values are linked to the achievement of the company’s vision and mission, because how we deliver on our vision is as important as the outcome itself.

Being the leading mining company implies making the transition to a truly global organisation, by leveraging key skills and best practices globally across all operations. In order to achieve this, we have reviewed the way in which we operate. We are strengthening both people and technical systems to reflect an aligned and consistent working model that can be adopted across a range of operating contexts. As part of this process, we have developed five-year and long-term delivery targets. These targets reflect performance consistent with our vision of becoming the leading mining company.

Business delivery targets

Safety Our long-term goal is to operate without accident or injury. By 2015, we aim to reduce our all injury frequency rate to less than 9 per million hours worked.
People We aim to have continuous improvement in productivity, achieving a 20% improvement in gold production per employee by 2015, from a 2010 baseline.
Environment Our long-term target is to operate without environmental incidents. By 2015, we aim to achieve a 30% reduction in reportable incidents from a 2010 baseline.
Production A 20% increase in production from a 2010 base, taking total production to between 5.4 and 5.6Moz by 2015.
Costs A 20% decrease in real unit costs (excluding mining inflation) by 2015, maintaining costs at the industry midpoint or below.
Financial Increase return on capital to greater than 15%, as evaluated on a five-year rolling basis to 2015.
Social licencing

A 40% improvement through to 2015 against the folllowing performance indicators:

  • number of operational interruptions;
  • approvals withheld or delayed on account of inadequate community engagement; and
  • value added through community engagement.

To progress delivery on the strategy and objectives outlined above, a sustainable development framework has been outlined for the business. This is described in more detail in the CEO discussion. Implementing this framework through a coherent sustainability strategy is a key priority for the year ahead.

Additional information on our business strategy is presented under Integrated Report 2011Our strategy

Mina Nova mine, Serra Grande, Brazil [photo]
Mina Nova mine, Serra Grande, Brazil