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Annual report suite 2012

Our business

AngloGold Ashanti, one of the world’s foremost gold exploration, mining and marketing companies, holds a portfolio of operations and projects on four continents, and has a worldwide exploration programme. We work across the full spectrum of the mining value chain, and are concerned with the impact of our activities on the diverse communities and environments in which we operate.

Worldwide exploration [map]

Operations

  1. 1 Argentina

    Cerro Vanguardia (92.5%)

  2. 2 Australia

    Sunrise Dam

  3. 3 Brazil

    Serra Grande (1)
    AGA Mineração

  4. 4 Ghana

    Iduapriem
    Obuasi

  1. 5 Guinea

    Siguiri (85%)

  2. 6 Mali

    Morila (40%)
    Sadiola (41%)
    Yatela (40%)

  3. 7 Namibia

    Navachab

  1. 8 South Africa
    Vaal River

    Great Noligwa
    Kopanang
    Moab Khotsong
    Surface operations
    Mine Waste Solutions

    West Wits

    Mponeng
    Savuka
    TauTona

  1. 9 Tanzania

    Geita

  2. 10 United States

    Cripple Creek & Victor (CC&V)

  1. (1) Effective 1 July 2012, AngloGold Ashanti increased its shareholding from 50% to 100%.

Major projects

  1. 11 Colombia

    Gramalote (51%)
    La Colosa

  1. 12 DRC

    Kibali (45%)
    Mongbwalu

  1. 13 Australia

    Tropicana (70%)

Percentages indicate the ownership interest of AngloGold Ashanti, whether held directly or indirectly. All operations and projects are 100%-owned unless otherwise indicated.

Our operations and projects

Headquartered in Johannesburg, South Africa, AngloGold Ashanti has 21 operations in 10 countries. Major development projects are Tropicana in Australia, Kibali in the Democratic Republic of the Congo (DRC) and La Colosa in Colombia.

Our extensive brownfield, greenfield and marine exploration programmes extend to 12 countries, in both established and new gold-producing regions through managed and nonmanaged joint ventures, strategic alliances and wholly owned ground holdings. We have an interest in Rand Refinery, a gold refining and smelting complex in South Africa, and own and operate the Queiroz refinery in Brazil.

The group is managed according to four geographic regions, namely:

  • South Africa, which comprises two mining areas and associated infrastructure – namely West Wits and Vaal River, which together comprise six deep-level mining operations and surface operations. In July 2012, AngloGold Ashanti concluded the acquisition of First Uranium (Pty) Limited, the owner of Mine Waste Solutions, which operates in the same area of South Africa.
  • Continental Africa, which comprises the operations in Ghana, Guinea, Mali, Namibia and Tanzania, as well as projects in the DRC.
  • Americas, comprising operations in Argentina, Brazil and the United States, as well as projects in Colombia. AngloGold Ashanti concluded the acquisition of the remaining 50% interest in Serra Grande in Brazil during the year.
  • Australasia, which currently focuses on a mine and project in Australia.

Our people

AngloGold Ashanti’s operations and joint ventures employed, on average, 65,822 people (including contractors) in 2012 (2011: 61,242).

Our products

Gold has been a much sought-after source of wealth over the centuries. It has extensive uses as an investment, as a store of value, as jewellery and for use in the electronics industry and medical technology.

Once mined, the ore is processed into doré (unrefined gold bars) at AngloGold Ashanti’s operations, and the product is dispatched to various precious metals refineries. The gold is refined to a purity of at least 99.5%, in accordance with the standards of “good delivery’ as determined by the London Bullion Market Association (LBMA). This is important as it ensures that we comply with the highest standards as a responsible mining company.

In addition to gold, and depending on geology, valuable byproducts including silver, sulphuric acid and uranium may be produced in the process of recovering the gold mined at our various operations. These are inputs to other markets and industries, demonstrating a valuable contribution from our mining.

Our markets

AngloGold Ashanti’s primary direct customers of gold are bullion banks acting as intermediaries for gold markets. We promote our product in target markets, by supporting initiatives aimed at improving gold jewellery design. This is mainly through the AuDITIONS programme of jewellery design competitions. Jewellery consumption in countries such as India and China represents an important portion of physical gold demand.

Our shareholders

AngloGold Ashanti’s primary listing is on the JSE in Johannesburg, and the company is also listed on the New York Stock Exchange, the London Stock Exchange, the Ghana Stock Exchange and the Australian Securities Exchange. The Government of Ghana held a 1.66% interest in the company (as at 31 December 2012). The governments of Mali, Guinea and the DRC hold direct interests in our subsidiaries in those countries. In Argentina, the province of Santa Cruz has a stake in Cerro Vanguardia.

In South Africa, a black economic empowerment (BEE) transaction undertaken in 2006 transferred an amount equivalent to 6% of the value of our South African production to employees participating in an Employee Share Ownership Plan (ESOP) and to our BEE partner, Izingwe Holdings. At year end, 25,284 employees were participants in the ESOP.

As at 31 December 2012, AngloGold Ashanti had 383,320,962 ordinary shares in issue and a market capitalisation of $12.02bn (2011: $16.23bn).

Attributable gold production [graph] Geographic distribution of shareholders [graph]

Responsible Gold

AngloGold Ashanti is a strong proponent of responsible gold and is intent on producing gold that meets the highest standards of responsibility and supply chain transparency. The company follows practices consistent with the London Bullion Market Association (LBMA) standards, the Responsible Gold Guidance and the World Gold Council Conflict Free Gold Standard, which are consistent with the Organisation for Economic Co-operation and Development’s Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas*. Three operations are also certified to the Responsible Jewellery Council’s Code of Practices.

AngloGold Ashanti participated in the establishment of these standards and certification procedures. We believe that the gold industry can and should be an agent for positive social and economic development in host countries, and should closely examine its role in areas affected by or at high risk of conflict.

OS See our Sustainability Report for a detailed discussion on Responsible Gold.

  1. * These initiatives were partly a response to Section 1502 of the Dodd- Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) which requires companies that file periodic reports with the US Securities and Exchange Commission (SEC) to perform due diligence at operations to determine whether a company’s supply chain makes use of any of so-called ‘conflict minerals’. This due diligence must be subject to an independent audit. The SEC’s final rules and regulations were published in August 2012.