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Annual report suite 2012

Securing our people and assets

“Our mission for the security of the company is very simple - it is to protect people, assets and the reputation of the company. The security landscape is becoming more and more challenging globally. The issue for us is that, in security, our action or inaction can negatively affect our licence to operate.”

{Brian Gonsalves, Vice President: Global Security }

The Voluntary Principles on Security and Human Rights (VPSHR) forms an integral part of our global security framework and is the key driver of our security management practices.

The VPSHR comprise a set of principles to guide businesses on meeting security needs while maintaining respect for human rights and fundamental freedoms.

Our mission for security within the company is to protect people, assets and uphold the reputation of the company. We work in vastly different environments with different risk profiles – from high to extreme risk to very low-risk environments. It is important for us to anticipate, interpret and appropriately mitigate security risk.

Our most significant security challenges inevitably lie in the regions in which we operate where there is endemic poverty, with high levels of unemployment and few opportunities for alternative livelihoods.

We recognise that good community relationships built on trust will have a positive impact on security and that an increase in illegal mining or artisanal mining and an increase in the level of organisation and funding of criminal activity around our operations have the potential to increase the number and severity of security incidents. Effective strategies for community engagement and local economic development to create alternative livelihoods are essential in addressing human rights and security issues and their causes.

In respect of security and human rights, in 2011 we committed to:

  • a review of all of our public and private security services, which has been completed, but requires ongoing attention as resource deployment changes according to threat and risk;
  • undertaking compliance and verification assessments of our global security framework implementation, which has been completed; and
  • integrating our global security framework and management practices within all of our exploration activities as part of the overall due diligence of new and existing exploration sites. This is currently underway.

Our performance in 2012

In support of our human rights commitments, we continuously strived to improve security management and practices across our operations. We continued to implement our global security framework, including embedding the VPSHR into our security management practices. Although AngloGold Ashanti has made good progress in the past few years, an increase in Voluntary Principles’ related incidents was notable in 2012, due to increased and more complex ASM illegal mining challenges, specifically in Tanzania and Ghana. The company has evaluated and will continue to evaluate incidents in 2013 to help the company achieve its goal of recording zero incidents in future years. A detailed annual report on progress in the application of the VPSHR is published on our website.

Extensive training of AngloGold Ashanti security personnel and public and private security suppliers is carried out in line with the VPSHR. In 2012, 99% RA of our security personnel received training (2011: 97%). Most of this training is undertaken in-house, although expert external service providers are engaged as necessary. In addition to training in respect of the VPSHR, training of our staff in task-orientated skills and competencies is standard. Specialised skills and training, for example, identification of explosives, crowd control or emergency response is done on a needs-basis.

We continue to seek support for our approach and activities. At Geita in Tanzania, an NGO called “Search for Common Ground” has been engaged to assist with the training of our people, private, public security and community in conflict prevention/resolution including sexual harassment. We are also undertaking work through the University of Stellenbosch in South Africa on conflict prevention in the security context, which will continue in 2013.

Another area of progress during the year was the introduction of a new incident investigation and management reporting methodology in the company, the Advanced Incident Investigation Programme. This was developed by AngloGold Ashanti, primarily in the context of safety, and now is also being used to investigate significant security incidents to identify their root causes and appropriate mitigating measures, with good progress to date.

Progress on the implementation of AngloGold Ashanti’s revised security strategy (five point plan)
    Objective Progress
1 Removing people from risk, reducing the potential for conflict Our primary means of preventing injuries to employees, security personnel and community members is to reduce the potential for conflict. In 2012, we reported 51 injuries to security personnel; there were two fatalities and 16 injuries among community members due to security interventions (2011: 49 injuries to security personnel; three fatalities and nine injuries among community members). Although the trend has remained more or less the same, we saw a marked increase in illegal activity at our sites in 2012, due to immigration and socio-economic hardship. However, Geita mine in Tanzania (which is the pilot for the implementation of our plan) saw improvements in the last quarter of 2012 – a decrease in incidents of conflict, despite an increase in apprehension of intruders.
2 Defining the role of communities in complementing security initiatives Our aim is to engage communities surrounding our operations to assist us with security and security initiatives, which is being done in partnership with private and public security providers and with civil society. The establishment of ASM and community forums, as part of our broader stakeholder engagement strategies, is being used as the platform to raise security awareness amongst communities and collectively define the role of communities to complement law and order and securing initiatives.
3 Partnering more effectively with public security providers The role of public security in our areas of operation is to maintain law and order. Our role is to protect our people and facilities. National police and/or military units provide security in accordance with specific agreements with the authorities or at the authorities’ initiative. The use of military or police support remains a last resort and will only be deployed if the risk profile requires it. At the end of 2012, we had a military presence at Siguiri in Guinea and at our projects in Colombia. The police provide a ‘permanent service’ at Geita in Tanzania, and at Obuasi and Iduapriem in Ghana.
4 Improving technology application and reducing manpower Our aim is to increase the use of technology and reduce the number of security personnel potentially at risk. A significant number of security personnel are deployed, which includes military and police force members providing a ‘service’ and who are exposed to risk on a daily basis. Good progress has been made with the implementation of AngloGold Ashanti’s revised security strategy (five point plan). The intention is for full implementation by 2015. The Phase 1 plan has been fully implemented at Geita in Tanzania. The plan has been communicated across all operations and implementation will start at the other sites in 2013, incorporating the lessons learned at the Geita pilot project.
5 Using highly-trained, skilled and equipped rapid reaction teams These teams are used to defuse potential security incidents before they escalate. Our capacity to respond appropriately to incidents in the field will also be improved through real time reporting, surveillance and monitoring and electronic alarms (technology). Positive results have been achieved with the pilot project at Geita in the last quarter, with the implementation of technology paired with trained, skilled and equipped people in the field. There has been a decrease in incidents of conflict, with a marked increase in the apprehension of intruders.

Key performance indicators

Fatalities & injuries due to security interventions [graph] Third parties fatalities/injuries (due to illegal activity) [graph]