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HUMAN RIGHTS

HR1

Global Compact ICMM

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator
HR1: Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening

Human rights screening of investment agreements

AngloGold Ashanti is aware that the human rights performance by its network of suppliers, business partners and contractors may have a significant impact on the communities in which it operates. Where appropriate, specific human rights clauses are included in significant contracts (including collective bargaining and other labour conventions).

In 2011, AngloGold Ashanti concluded two significant investment agreements.

In July 2011, AngloGold Ashanti acquired a 19.8% interest in First Uranium Corporation from Village Main Reef Limited. Competition approval for this transaction was obtained in November 2011. The rationale for this investment was to facilitate the ultimate acquisition by AngloGold Ashanti of Mine Waste Solutions (“MWS”), a tailings retreatment operation situated in the near proximity of AngloGold Ashanti’s Vaal River operations and the principal asset of First Uranium. Amongst other direct benefits of the transaction, the acquisition of the MWS operation not only eliminates a substantial capital investment that would otherwise be required to construct a plant to process its Vaal River tailings, but also, through the processing of these tailings dams, significantly reduces associated, long-term potential environmental liabilities, closure and rehabilitation costs at AngloGold Ashanti’s Vaal River operations. Upon the implementation of the acquisition, MWS will be 100% owned and operated by AngloGold Ashanti and as such the operation will subscribe to all of AngloGold Ashanti’s values, which include those related to dignity, respect and human rights.

In December 2011, AngloGold Ashanti subscribed for a further 19.8% interest in Marianna Resources Limited. AngloGold Ashanti has representation on a technical advisory committee which will direct and review all exploration and project development programmes of Mariana Resources going forward. The decisions of this Technical Advisory Committee are by unanimous consent and as such AngloGold Ashanti will be able to ensure that Mariana Resources’ exploration and project development activities are implemented consistent with AngloGold Ashanti’s values, which include dignity, respect and human rights.

During 2011, AngloGold Ashanti continued its joint venture activities with the De Beers group of companies, including through memoranda of understanding (MOU) and definitive agreements which have been or are in the process of being entered into in respect of the exploration and development of placer gold mining projects on marine deposits. These include MOU and agreements in respect of the South African Sea Areas (SASA), Alaska and further ventures being considered in other regions.

The agreements related to the joint venture, MOUs and each placer gold mining project include provisions that state that the operating practices in each area will be consistent with both AngloGold Ashanti's and De Beer's corporate values, standards and internationally acceptable mining practice, which includes values related to human rights and communities.

A number of additional potential investments are currently under consideration and for which no agreements as of yet have been entered into. In the event the investments being considered progress to the point of agreements being entered into, AngloGold Ashanti's corporate values, standards and internationally acceptable mining practices would be included in such agreements. As both of the significant investment agreements concluded in 2011 included human rights clauses, the percentage of significant investment agreements that have undergone screening for human rights clauses is 100%.


HR2

Global Compact Reasonable Assurance

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator
HR2: Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken

Human rights screening of suppliers

AngloGold Ashanti is committed to the protection of human rights. This commitment has been incorporated into our code of ethics and is demonstrated in our support of the United Nations Global Compact and other relevant principles and conventions.

In our 2010 report, we indicated that we would initiate a process of screening significant suppliers in 2011 to ensure company–wide reporting on the human rights screening of suppliers by 2016.

Progress against this objective was made during 2011. During the year under review, we contracted with an external service provider to design an online ethical supply chain tool for the purpose of screening suppliers.

This tool will assist AngloGold Ashanti to:

  • Determine the intrinsic risk exposure of each supplier in relation to human rights, labour standards and environmental issues impacting on procurement activities per country;
  • Evaluate the effectiveness of suppliers' implementation of human rights and labour standards; and
  • Manage corrective actions to get suppliers to an acceptable level of compliance with human rights standards.

Desktop audits of suppliers will be undertaken using a questionnaire process and, where necessary, on-site inspections undertaken to verify information supplied in the questionnaire.

Although we are not yet in a position to report on the percentage of suppliers screened, we remain on track to putting systems in place to gather and report on this information by our target date of 2016.


HR4

Global Compact ICMM Reasonable Assurance

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator. HR4: Total number of incidents of discrimination and corrective actions taken

Incidents of discrimination and action taken

All forms of discrimination, including racial and sexual harassment and discrimination against the disabled, are prohibited by the company’s code of ethics and policies as well as by legislation in most of the countries where our opertions are located.

During 2011, one allegation of discrimination on racial grounds was made through our whistle–blowing system. The allegation originated from an operation in our South African region. An independent review was conducted which included officials from organised labour, and following which the senior human resources manager at the operation was replaced. As a result of the incident, a labour relations officer for the operation was also appointed.

No other incidents of discrimination were recorded.


HR5

Global Compact ICMM

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator
HR5: Operations identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights

Right to freedom of association

No operations have been identified where the right to exercise freedom of association and collective bargaining may be at risk.

The group is committed to upholding the basic labour rights as expressed in the International Labour Organisation (ILO) instruments and as implemented through specific practices in the countries where AngloGold Ashanti operates.

In support of these rights, AngloGold Ashanti concluded the ‘Agreement on the Promotion and Implementation of Good Human and Labour Relations in AngloGold Ashanti Operations Worldwide’ with the International Federation of Chemical, Energy, Mine and General Workers’ Unions (ICEM) in April 2009. The agreement contains all the elements of AngloGold Ashanti’s human resources and labour relations practice as well as the dictates for sound and fair labour practice as contained in the Labour Relations Act. The principles of the agreement are integrated into regional human resources management policies and practices where appropriate.


HR6

Global Compact ICMM

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator
HR6: Operations identified as having significant risk for incidents of child labour, and measures taken to contribute to the elimination of child labour

Policies on child labour

AngloGold Ashanti is committed to upholding the basic labour rights enshrined in the Fundamental Rights Conventions of the International Labour Organisation (ILO) and in the legislation, regulations and practices of the countries where it operates. Recruitment policies are aligned with the legislation in the regions of operation. The company does not employ child labour.

We note that in certain instances children are involved in artisanal and small–scale mining (ASM) activity on or around concessions where we operate. These activities occur with or without our consent and cannot be regulated by the company.

Our operations in the African continent such as Ghana, Mali, Tanzania, Guinea, Namibia and South Africa have a higher predisposition to artisanal and small small-mining and therefore carry an inherent risk for child labour practices. We address these risks by applying the relevant legislative frameworks and by using our own internal risk management process to identify and mitigate these risks. We adhere to the legislation prohibiting child labour in these particular countries i.e. the Basic Conditions of Employment Act in South Africa, the Ghanian Labour Act and the Children’s Act, the Namibian Labour Act, the Employment and Labour Relations in Tanzania and the relevant National Labour Laws in Mali and Guinea. AngloGold Ashanti also does not employee young workers (younger than 18) in roles where they would be exposed to hazardous work, even if local legislation permits this.


HR7

Global Compact ICMM

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator
HR7: Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of forced or compulsory labour

Policies on compulsory labour

AngloGold Ashanti is committed to upholding the basic labour rights enshrined in the Fundamental Rights Conventions of the International Labour Organisation (ILO) and in the legislation, regulations and practices of the countries where we operate. Recruitment policies are aligned with the legislation in the regions in which we operate. No operations identified concerns relating to forced or compulsory labour.


HR9

Global Compact

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator
HR9: Total number of incidents of violations involving rights of indigenous people and actions taken
MM5:: Total number of operations taking place in or adjacent to Indigenous Peoples’ territories, and number and percentage of operations or sites where there are formal agreements with Indigenous Peoples’ communities

Rights of indigenous peoples

AngloGold Ashanti is mindful of the specific considerations that need to be taken into account regarding Indigenous Peoples and has developed a standard in relation to Indigenous Peoples, based on IFC performance standard 7.

No AngloGold Ashanti operations are located in or adjacent to Indigenous Peoples’ territories. Our exploration site in the Democratic Republic of Congo, Mongbwalu, is located close to Indigenous Peoples’ territories, with the closest drilling operation approximately 2km from pygmy territory.

Sampling exercises conducted in the area resulted in cables being run through villages belonging to local community members, but not those of pygmies. No incidents of violations of the rights of indigenous peoples were recorded in 2011.