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Annual report suite 2012

Delivering sustainable community benefits

We aim to foster sustainable development in host communities* as a way of working towards our value of leaving communities better off for us having been there.

Community investment in 2012

We are required to engage effectively with communities throughout the life cycle of a mining operation. From exploration to closure, we commit the necessary resources to ensure that effective engagement takes place.

  1. * Host communities are those groups of people who are directly or indirectly affected by AngloGold Ashanti, including those surrounding our operations, those on transport routes used by our operations, and those in areas from which our labour is drawn (labour-sending areas).

How we make a positive impact

Measuring whether or not we are achieving these aims is not a simple task, particularly at a group level. Indicators of our performance include:

  • our direct contribution to regional and local development through community investment (see table below);
  • our indirect contribution to regional and local development through infrastructure development;
  • the creation of employment opportunities, particularly locally;
  • our contribution to local economic development through our procurement expenditure, and also in the way in which we encourage and develop economic activity, see Managing our supply chain;
  • payments to government in respect of resources extracted, including direct and indirect taxation and royalties, see Adding value;
  • the nature of our engagement with communities and their representatives; and
  • community incidents that have resulted in disruptions or threats to our operations and to our communities, see table below.

All sites have a range of interventions designed to eliminate or mitigate community risks and impacts, and programmes to enhance the well-being of communities living in close proximity to our operations. At new sites, baseline studies and surveys must be conducted to determine the socio-economic conditions existing prior to our entering an area.

Our interventions are largely intended to be long-term and sustainable, and undertaken in partnership with local communities, government and NGOs, where this is applicable, to ensure the greatest possible impact, longevity and support. The scale and influence of these interventions varies from operation to operation, and is dependent on specific local needs and the relative influence of the company.

Community development programmes are supported by community engagement plans. Personnel on site are responsible for engaging with local stakeholders, noting their concerns and issues, and responding to these timeously and transparently. Site-specific community frameworks are intended to maximise the benefit flow to affected communities within clearly-defined parameters of responsibility, but without the company becoming the de facto provider of services instead of the authorities, as this is not sustainable.

Our approach to skills development and employment is discussed in greater detail under Attracting, developing and retaining our people . The way in which the business creates and shares value is discussed under Adding value.

CASE STUDY

Water everywhere, for everyone – community water initiatives

AngloGold Ashanti‛s integrated water management plans are based on a hierarchy of pollution prevention, reuse and reclamation, and treatment of water.

See case study: South Africa – Water everywhere, for everyone

CASE STUDY

Collaborative efforts to preserve water in Colombia

AngloGold Ashanti is mindful of the need to address water as a critical and sustainable resource. We are therefore working closely with communities surrounding the La Colosa project in Colombia to preserve water in the Coello River Basin.

See case study: Americas – Collaborative efforts to preserve water in Colombia

CASE STUDY

Working with the Mbuti to preserve DRC forests

In the DRC, Ashanti Goldfields Kilo ’ a subsidiary of AngloGold Ashanti and the world‘s third largest gold producer ’ has collaborated with local communities in order to preserve the indigenous flora and to use it for rehabilitation which is both an ongoing and final closure responsibility of companies conducting mining activities in the country.

See case study: Continental Africa – Working with the Mbuti to preserve DRC forests

CASE STUDY

New ways of working with wood – artist-in-residence programme

Wood – known in the local Pitjantjatjara language as punu – is integral to the lives of the Spinifex people who form part of the Tjuntjuntjara community in a remote area of Western Australia. It is therefore not altogether surprising that an artist-in-residence programme using wood, and supported by AngloGold Australia, culminated in a successful exhibition of work.

See case study: Australasia – New ways of working with wood – artist-in-residence programme in Australia

CASE STUDY

Ensuring the TauTona community is better for us having been there

One person with a helping hand from AngloGold Ashanti can change lives for the better. In 1988, after a child congregant collapsed in her church, Pastor Magdalene Nunens resolved that her calling was to care for those affected by HIV/AIDS.

See case study: South Africa – Ensuring the TauTona community is better for our being there

CASE STUDY

Supporting the Cajamarca Dairy Sector

AngloGold Ashanti‛s La Colosa project is aimed at supporting the milk-producing livestock sector of Cajamarca.

See case study: Colombia – Supporting the Cajamarca Dairy Sector

CASE STUDY

AngloGold makes decisions with help from the local community

The Chamada Publica de Projetos (CPP) initiative seeks to engage communities near our operations in Brazil in making decisions regarding social investment.

See case study: Brazil – AngloGold makes decisions with help from the local community

CASE STUDY

Basic education project reaps rewards

The BEI Project is improving the delivery of basic education and the pass rate in our host communities of the Tarkwa-Nsuaem Municipality, Ghana.

See case study: Ghana – Basic education project reaps rewards

What we said we would do

Specific commitments made in 2011 include:

  • implementation of the community standards developed in 2011 (www.aga-reports.com/11/sd/community-relations). These standards are based on international good practice such as the International Finance Corporation (IFC) Performance Standards and the International Council on Mining and Metals (ICMM) position statements and seek to support the development of a more consistent approach to community relations and socio-economic contributions across the group;
  • implementation of a sustained and strategic engagement approach with key stakeholders across the group; and
  • ongoing contribution to our communities through our community investment activities. At some operations the quantum and nature of this expenditure is agreed between the company and the regulators. In all regions, decisions are made based on identified needs and community consultation.

We do not currently have global performance metrics to measure the impact of our on-the-ground interventions and investments, for example, number of jobs created, or number of children schooled. However, through the roll-out of our socio-economic contribution standard and guideline, sites are mandated within their socio-economic contribution strategy to provide clarity on the desired outcomes of interventions, as well as to monitor and evaluate progress and impacts. While a number of sites already have these metrics on a project-by-project basis, it is not consistent across the organisation.

Our performance in 2012

Seven community management standards were approved in October 2011 as part of our overall community management framework. The Community Management standards are:

  • engagement;
  • land access and resettlement;
  • socio-economic contribution;
  • complaints and grievances;
  • indigenous peoples;
  • ASM; and
  • cultural heritage and sacred sites.

The standards were designed to ensure a consistent and balanced approach to community engagement across the group. Further work is being undertaken to align our standards with the recently revised IFC Performance Standards, although major changes are not expected. Detailed guidelines have been drawn up for three of our standards: Engagement; Complaints and Grievances; and Socio-Economic Contribution. See our Community and Environment Management standards.

The implementation process is being undertaken in four phases, namely:

  • initial roll out and socialisation. This includes developing an understanding of country or site-specific requirements, their context, and their practical application;
  • undertaking a gap assessment to identify best practices within the organisation as well as opportunities for improvement based on current practices and the requirements of the standards and review the completeness, accuracy and effectiveness of our management of community-related risks.
  • developing action plans to address areas for improvement and mitigate identified community-related risks; and
  • ongoing embedding of these standards into the operation of each site and their adaptation to suit the context of each site.

In 2012, nine operations (three in the Americas Region and six in the Continental Africa Region) and two projects (Gramalote and La Colosa in Colombia) were reviewed. The completion of the implementation process is planned for the end of 2013.

The group took a decision during the year to re-evaluate the feasibility of the integration of community parameters into the ISO14001 management system. The initial decision to include social aspects into ISO14001 stemmed from a desire to manage our social performance in a rigorous and systematic manner. While progress has been made in achieving this through the Community Management Framework, the compatability of this system and ISO14001 is being questioned.

OP For a detailed discussion on community engagement and investment by operation, see our Operational Profiles.

Monitoring community incidents

Since 2011, AngloGold Ashanti formalised the process of monitoring and reporting of community incidents. A community incident is any event caused by the company which has the potential to lead to a negative impact on the community or any event caused by the community which has the potential to lead to a negative impact on the company. At AngloGold Ashanti, community incidents are classified into five levels of severity: minor; moderate; major; high; and extreme and are categorised into six types:

  • active community opposition;
  • indigenous or traditional cultural heritage disturbance/rights infringements;
  • human rights issues;
  • structural damage to public or private property;
  • noise and ground vibration; and
  • reputation issues.

Community incidents* RA

  2012
South Africa 3
Continental Africa 53
Australasia 1
Americas 1
  1. * Includes all levels of severity. Of the total, only two incidents were reportable.

Inaugural community awards recognise excellence in project design and impact

In 2012, AngloGold Ashanti held its inaugural Community Awards, intended to reinforce good-practice principles by initiating, implementing and measuring the impacts of community projects.

The criteria for the awards were:

Project design:

  • engagement – to what extent the project initiation was consultative;
  • strategy – the extent to which the project resulted from a broader site/region/corporate strategy;
  • partnership – the extent to which the project involved one or more partners; and
  • innovative approach.

Project impact:

  • potential or actual benefit to communities;
  • monitoring and evaluation – the nature and extent of monitoring and evaluation conducted; and
  • sustainability – sustainability elements were designed into the project.

The three winners for 2012 were:

  • supporting the Cajamarca dairy sector in Colombia – see case study;
  • AngloGold Ashanti makes decisions with the help of local communities in Brazil – see case study; and
  • Basic Education Improvement project at Iduapriem in Ghana – see case study.

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement (EC8)

Infrastructure development and community investment in community-focused services (such as providing electricity or water services or community health programmes) often play an important part of AngloGold Ashanti’s socio-economic contribution. The nature of these initiatives is largely dependent on engagement with communities, local and national governments and other affected and interested stakeholders. We aim not to assume the role of government, but in some cases act as a partner to government or catalyst for development in the areas where we operate. AngloGold Ashanti’s Socio-Economic Contribution Standard requires the sites to develop a socio-economic contribution strategy based on extensive engagement with key stakeholders, risks and opportunities assessments, and baseline information. Future infrastructure investments and services provided to the communities, will have to be the included and justified by a holistic strategy that aims to operationalise our value of leaving our communities better off for our having been there. AngloGold Ashanti is developing methods to enable the company to measure impacts of its socio-economic contribution, beyond reporting on amounts spent on community investment spend.

Examples of our contributions include:

In the DRC, the first phase of the Budana hydroelectric power plant refurbishment was completed in 2012, followed by the successful commissioning of the plant. The refurbishments have led to an improvement in the reliability and quantity of power available. Further refurbishments are planned which will increase electrical capacity and improve security of supply to the local communities. The initiative arose from engagements between Ashanti Goldfields Kilo (AGK) and the local government.

In 2005, AngloGold Ashanti began implementing an integrated malaria programme in Obuasi, one that would not only cover mine housing and infrastructure but also private housing and buildings in Obuasi town and in villages within the Obuasi Municipal district. The cost of the programme was $1.7m in the first year and $1.3m per year thereafter. The aim was to reduce the incidence of malaria by 50%. To date, the malaria programme at Obuasi has not only reduced the burden of malaria in the community, but has also reduced absenteeism at the mine, increased productivity and reduced the cost of malaria medication to employees and dependents. The lessons learnt at Obuasi have been used to initiate similar projects in our other operations.

Community investment spend by country and region ($000)

Country RA 2012 2011 2010 Variances
South Africa 7,055(1) 1,065(1) 170(1) Community investment expenditure increased in the South Africa Region due to an increase in project activity due to the approval of Social and Labour Plans. The social investment expenditure also showed an increase across the board. Community training also increased in 2012.
Continental Africa 13,341 13,502 8,047  
DRC        
Kibali (45%) 976 1,299 489  
Mongbwalu 2,935 3,335 1,393  
Ghana        
Iduapriem 465 513 404  
Obuasi 2,007 2,704 2,100  
Ghana Corporate 70 47 1,300 Mainly due to a donation towards the funeral of the late President.
Guinea        
Siguiri 1,083 772 556 Variance due to increased funding of community dust control initiatives.
Mali        
Morila (40%) 198 48 214 Variances due to increased support of initiatives such as:
  • support of a local soccer team;
  • building of three classrooms; and
  • building of Sanso water pond food security donation.
Sadiola (41%) 472 304 429 Sadiola and Yatela responded to a food crisis in the area as a consequence of the coup.
Yatela 100 125 13 Increases were also as a result of:
  • increase of Integrated Development Action Plan (IDAP) funding for building of large-scale dams;
  • support for Diamou school;
  • food donations to Sadiola and Diamou communes; and
  • donation to a neglected Tropical Disease Programme.
Namibia        
Navachab 201 54 133 The increase is as a result of a renewed strategic focus on community investment.
Tanzania        
Geita 4,834 4,302 1,016  
Australasia 464 276 456  
Australia        
Sunrise Dam(2) 464 276 456  
Americas 5,148 4,939 5,480  
Argentina        
Cerro Vanguardia 1,520 2,067 1,602  
Brazil        
AGA Mineração 813 791 791  
Serra Grande(3) 719 268 831 The variances are due to the inclusion of government incentivised social initiatives.
Colombia 1,188 1,210 1,557  
USA        
CC&V(4) 908 603 699 The increase of donations from the Denver office included stakeholder engagement with state-wide historic preservation groups: Colorado Preservation Inc., Governor’s Residence Preservation Fund, History Colorado Center, and Share in the Care Colorado, the campaign to restore the Capitol Dome, educational outreach organisations and state-wide associations. CC&V increased contribution to the community infrastructure in Cripple Creek, Victor and Teller County.
Other, including corporate and non-gold producing subsidiaries 645 2,605 3,072  
Sub-total 26,653 22,387 17,225  
Equity accounted investments included above (1,746) (1,775) (1,145)  
AngloGold Ashanti 24,907 20,611 16,080  
  • (1)Aggregated for all South African operations
  • (2)Includes Perth office
  • (3)Effective 1 July 2012, AngloGold Ashanti increased its holding from 50% to 100%
  • (4)Includes Denver office