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Annual report suite 2012

Attracting, developing and retaining our people

Italia Boninelli

PODCAST

Italia Boninelli
AngloGold Ashanti
Executive Vice President: People and Organisational Development

Combating skills scarcity

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CASE STUDY

Simunye, working as 'one'

The AngloGold Ashanti programme that “unfreezes” its staff, only to “refreeze” them three weeks later is showing positive results.

See case study: South Africa – Simunye – working as ‘one’ in South Africa

CASE STUDY

Education in the shadow of the headgear

As part of the company‛s strategy of uplifting communities, an exciting Human Resource Development project – aimed at stimulating youth development and growth within local communities – was implemented in Merafong, Matlosana, the OR Tambo District and Moqhaka Local municipalities during 2012.

See case study: South Africa – In the shadow of the headgear

CASE STUDY

Supporting students for the future at Sunrise Dam

It is not every day Aboriginal youth from Leonora get the chance to travel to the United States, but thanks to the support of AngloGold Ashanti‛s Australasia Region, two students from the Christian Aboriginal Parent-Directed School in Coolgardie were given the opportunity in 2012 to visit Camp Dudley, located in New York state, as part of a cultural exchange programme.

See case study: Australasia – Supporting students for the future – AngloGold Ashanti Australia

CASE STUDY

Continental Africa – Support for major skills development initiative

Africa is recognised as having a booming mining sector, but a critical shortage of mining skills. According to Executive Vice President for Africa, Richard Duffy, the continent‛s educational institutions are not currently in a position to meet the growing demand for a broad range of skills.

See case study: Continental Africa – Support for major skills development initiative

At AngloGold Ashanti we believe that ‘People are the Business’.

Implicit within this statement is our desire to:

  • attract, retain and develop our people;
  • engage and connect with each other, making sure that we involve the right people in the right way to deliver the right outcome; and
  • ensure that our people management system, the System for People, provides consistent context for our people and organisational development strategies, and that this is achieved within the framework of our company values, objectives and strategy.

What we said we would do

In 2011 we reiterated our purpose to advance our implementation of the System for People, with clear objectives to build internal capability, retain key skills, develop diverse talent and succession plans, and embed a culture of accountability within the business.

Our performance in 2012

System for People

The System for People, our people component of Project ONE, was designed to facilitate an effective organisation structure and an accountability hierarchy that facilitates engagement and involvement at the right levels of the organisation, and efficient execution of work.

The roll-out of the System for People across the organisation continued during the year, estimated at 60% of coverage by all business units. An extensive amount of training on managerial leadership practices is in progress to provide line managers with tools to manage the outputs of their immediate reports and hold them accountable for their work.

Our progress to date has confirmed that working towards having the right people in the right roles and focused on the right work, creates both personal and organisational advantages. We found that individual capability that is well-matched to role complexity results in good performance, good decision-making at the appropriate level of work complexity, and employees who are sufficiently challenged and engaged.

Together with the Business Process Framework – the technical component of Project ONE – the System for People promotes standard business processes across every area of the company in order to ensure that the right people are in the right roles and are working to ensure stable processes in order to deliver consistently exceptional results.

Global talent management

In line with the roll-out of the System for People, we have developed an integrated global talent management model to help us navigate scarce skills challenges in our industry while servicing the individual development needs of our employees.

All AngloGold Ashanti employees are recognised as talent and considered central to the organisation’s success. We therefore remain committed to continuously improving our talent pool development processes and to identifying further opportunities for social media, e-learning technology platforms, and for industry-wide collaboration in managing skills scarcity issues that affect many of us to some extent.

Our aim in talent management is to deliver a strategic and integrated analysis of priorities across business areas and to put in place plans to address long-term business needs to 2020. Our key focus areas of work include:

  • obtaining a clear understanding of the business landscape (strategic priorities, cultural priorities and business drivers);
  • understanding the talent implications (people trends, capacity projections, organisation needs and capacity gaps); and
  • enhancing our talent growth engine disciplines (e.g. selection, development, performance management and succession management).

Another area of focus is addressing employee turnover in key roles and the period of time taken to fill jobs at middle and senior management (those with eight to 10 years of experience). Due to skills shortages and the location of our operations, we find that many young mining graduates are not staying in the mining industry for longer than two to three years, opting instead for jobs in financial services, consulting services or the petrochemical industry. In our experience, these individuals rarely return to the mining industry and consequently, we experience shortages at middle management and in key technical skills.

In response to the skills shortage challenge, we have developed a conceptual model that addresses this issue. Our research focused on four levels:

  • identifying gaps in resources to deliver the business plan;
  • identifying gaps in the pipeline of the discipline from secondary school level through to senior management;
  • more innovative sourcing strategies (including re-looking at our employee value proposition); and
  • retention strategies.

We have established an integrated systemic approach with a series of possible interventions at different levels as shown in the scare skills model. The application of this model in 2013 will be extended globally as a guiding framework for our operating regions.

Scarce skills pipeline

Scarce skills pipeline

Key performance indicators

Group turnover rate (%)

Developing strategic alliances

We seek to leverage strategic alliances in research and development where we can collaborate with prominent experts across multiple industries to develop and share leading innovations. These alliances, for example the Technology Innovation Consortium, help us build skills and capability both internally and for the benefit of the industry in finding solutions to address common and future concerns (www.aga-tic.com).

Addressing skills shortages from schools and universities in South Africa

The pipeline of potential employees coming out of schools is inadequate. There is a global decline in mathematics and science learners. This is particularly accentuated in certain countries and South Africa is one of them. Some of the most common vacancies in South Africa are at the heart of our business: production and section engineers/ managers, rock engineers, financial managers, senior safety and risk personnel and mine overseers.

In South Africa we have embarked on a number of interventions:

  • Our focus is on schools in our communities. We support the Star Schools (www.starschools.co.za) career guidance programme, teacher and lecturer development and capacity building, infrastructure upgrades at FET (Further Education and Training) colleges, bursaries, community internships, learnerships, and the development of community mining and portable skills.
  • We support adult literacy programmes aimed at our employees and the broader communities in which we operate.
  • We contribute to the Mining Education Trust Fund, a joint effort across the industry that supplements the salaries of lecturers at universities and helps to subsidise specialised mining equipment to train mining students.

Our graduate trainee programme provides vacation work and postgraduate training placements to ensure new graduates get the practical experience they need to become employable.

Geotechnical Engineering Centre

The Geotechnical Engineering Centre, part of the School of Civil Engineering at the University of Queensland, supports the new Civil and Geotechnical Engineering and Mining and Geotechnical Engineering Dual Major programmes and specialises in a range of fields in geotechnical and geoenvironmental engineering and computational modelling.

To meet the growing demands of the Australian mining industry, AngloGold Ashanti, together with industry partners, is funding the Geotechnical Engineering Centre, with each partner contributing AUS$150,000 per year. The University of Queensland is matching this funding providing a total of AUS$1.2m per year. The funding supports four academic positions, postdoctoral research positions, as well as undergraduate and postgraduate scholarships, and specialised geotechnical equipment and computer hardware purchases.

AngloGold Ashanti’s relationship with the Centre will be mutually beneficial as the Centre offers a consulting service through the expertise of their staff, which includes expert advice, laboratory testing, computer analyses and commercial research.

Employee relations and collective bargaining

In 2012, 91.5% RA of full-time employees were either members of a union or covered by collective bargaining agreements (2011: approximately 81%). The number of employees used to calculate percentage coverage by collective bargaining agreements differs from the employee numbers recorded above (under the GRI indicator LA1) as only full-time employees with indefinite contracts were used as a basis to calculate the percentage of employees covered by collective bargaining agreements. Contractors or employees with fixed-term contracts are generally not covered by collective bargaining agreements. High levels of unionisation occur at operations in South Africa, Brazil, Argentina and areas of West Africa. In Tanzania, although employees are free to join unions and management liaises regularly with unions represented, no single union has reached the minimum number of members required to be officially recognised as representative for the purposes of collective bargaining. There is no unionisation of employees in the USA and Australia.

Minimum notice periods

The minimum notice period for operational changes varies between operations. No minimum notice period is stipulated in countries such as the USA and Australia where the workforce is not unionised. In other jurisdictions, notice periods range from three weeks to six months. Notice periods are specified in collective agreements only in Ghana and South Africa. In Ghana, a notice period of three months is specified in union recognition agreements. In South Africa, collective bargaining agreements refer to statutory notice periods, which range from one to six months depending on the complexity of the operational changes envisaged.

Total workforce by employment type, employment contract and region (LA1)

Operations RA Total 2012 Employees Contractors Total 2011 Employees Contractors
South Africa                34,186 29,740 4,446 32,082 28,176 3,906
South Africa 34,186 29,740 4,446 32,082 28,176 3,906
Great Noligwa 3,063 2,985 78 2,967 2,884 83
Kopanang 6,014 5,589 425 5,892 5,468 424
Moab Khotsong 6,645 4,665 1,980 6,581 4,618 1,963
Mponeng 6,262 6,088 174 5,788 5,624 164
Savuka 1,157 966 191 815 785 30
Mine Waste Solutions(1) 728 417 311
Surface operations(2) 1,147 1,147 745 745
TauTona 4,472 4,006 466 4,507 4,023 484
Other 4,698 3,877 821 4,787 4,029 758
Continental Africa 16,620 10,012 6,609 16,539 9,783 6,756
Ghana 6,921 4,796 2,126
Iduapriem 1,549 698 851 1,543 741 802
Obuasi 5,373 4,098 1,274 5,538 4,163 1,375
Guinea 3,643 1,920 1,723 3,666 1,718 1,948
Siguiri 3,643 1,920 1,723 3,666 1,718 1,948
Mali 1,509 655 854 1,461 650 811
Sadiola (Attributable 41%) 783 362 421 756 347 409
Morila (Attributable 40%) 319 169 150 328 174 154
Yatela (Attributable 40%) 407 125 282 377 129 248
Namibia 953 953 790 790
Navachab 953 953 790 790
Tanzania 3,594 1,688 1,906 3,541 1,721 1,820
Geita 3,594 1,688 1,906 3,541 1,721 1,820
Australasia 494 110 384 509 101 408
Australia 494 110 384 509 101 408
Sunrise Dam 494 110 384 509 101 408
Americas 12,112 8,006 4,106
Argentina 1,884 1,126 759 1,644 1,065 579
Cerro Vanguardia 1,884 1,126 759 1,644 1,065 579
Brazil 5,319 3,898 1,421
AGA Mineração 4,238 3,078 1,161 3,825 2,715 1,110
Serra Grande 1,080 821 260 1,339 1,039 300
USA 692 485 207
CC&V 692 485 207 581 454 127
Other, including corporate and non-gold producing subsidiaries 6,626 2,457 4,169 4,723 2,733 1,990
Group 65,822 47,829 17,993 61,242 46,066 17,176
  1. (1)Only applicable from 2012.
  2. (2)Reported separately for the first time in 2011.

Total number and rate of employee turnover by gender and region (LA2)

  Turnover % Turnover – women % Number of separations
  2012 2011 2012 2011 2012 2011
Australasia         50 69
Australia 14.06 15.47 4.39 7.36    
Americas         611 533
Argentina 10.32 8.39 0.53 0.75    
Brazil 9.48 8.26 0.69 0.68    
Colombia 10.30 16.55 3.55 2.92    
USA 15.46 20.81 2.61 5.80    
Continental Africa         526 592
DRC 15.22 15.02 0.85 8.84    
Ghana 5.69 5.25 0.18 0.21    
Guinea 0.19 0.60 0.00 0.07    
Namibia 4.75 6.12 0.26 1.39    
Tanzania 10.09 15.47 0.25 0.62    
South Africa         2,402 2,759
South Africa 7.62 8.99 0.82 0.86 2,329 2,677
Corporate* 11.08 15.16 3.66 2.74 73 82
Group 7.55 8.99 0.77 0.85 3,589 3,956
  1. * Note that the Corporate figure includes Corporate Office, B&TD and Isle of Man

Number of strikes and lock-outs exceeding one week’s duration by country (MM4)

Country Operation Action Cause Impact
Namibia Navachab Strike Wages One procedural strike over wage increases occurred, lasting 13 days, from 13 to 25 July.
South Africa South African operations Unprotected strike Wages and union rivalry, outside of collective bargaining cycle There was one unprotected strike that spilled over from other mining houses. The strike was unprotected in terms of the Labour Relations Act. It lasted from 22 September to 25 October, involving some 22,000 employees.

Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity (LA13)

Composition of the board by gender (%) Men Women
  91.7% 8.3%
Composition of the board by age group*(%)
<40
41 to 50 8.3
51 to 60 33.3
61 - 70 50.0
>70 8.3
Composition of the board by nationality(%)
South African 53.85
Ghanaian 15.38
British 7.7
American 7.7
Indian 7.7
Employees by gender and employee category (%) Men Women
2012 2011 2012 2011
Junior management and skilled staff 85.12 56.07 14.88 10.16
Middle management and professionally qualified 81.48 82.48 18.52 17.52
Semi-skilled and unskilled staff 89.31 96.27 10.69 13.93
Senior and top management 88.11 39.84 11.89 9.73

In South Africa the Mining Charter specifies that 40% of management should be made up of historically disadvantaged South Africans (HDSAs). As at 31 December 2012, HDSAs made up 32% of senior management and 40% of top management for our South African management team.

Ratio of basic salary of men to women by employee category (LA14)

Employee category 2012 2011
Junior management and skilled staff 0.88 0.96
Middle management and professionally qualified 1.02 0.99
Semi-skilled and unskilled staff 0.92 0.93
Senior and top management 1.13 1.09
  • * Rounding may result in computational discrepancies