The nature of mining dictates that air, water and energy management, biodiversity protection and land rehabilitation will consistently be key focus areas of our environmental stewardship. The degree to which we manage these at each of our operations will be influenced by their different geographies.

At an operational level, our work is governed by our Group Environmental Policy, Standards and Guidelines. Adherence to these requirements is tested during combined assurance audits. This overarching architecture aims for a consistent approach across our global portfolio, while also allowing operations to adapt their environment management programmes to varying operational, geographical, climate and regulatory settings.

Each operating site’s unique suite of controls is also maintained through its Environmental Management System (EMS), which is certified to the ISO 14001:2015 standard. Collectively, these processes and systems provide the foundation for securing and enhancing our licence to operate.

We continue to progress towards further integration between key functions. For example, in preparation for the recommencement of operations at our Obuasi mine in Ghana, we developed an enhanced management operating system that sets out the accountabilities and workflow maps within the environment function and between the environment and line functions. It is anticipated that this integration will contribute to improved environmental outcomes for the site.

Water

Water is a valuable and often scarce resource, making water management a vital focus area for the company. Our water is imported from three major sources: utility companies; surface water sources, which include rivers and lakes; and groundwater sources, which include groundwater draining into mine pits and into deep underground workings.

A primary objective of water management at site level, is to minimise the volume of imported water, often working towards a site-specific target. We also track performance by monitoring the water recycling percentage and the volume of water imported per tonne of ore treated at site level. Another primary water management objective is to prevent the contamination of water resources by our activities. Although we operate some zero discharge sites, operations in wet climates typically treat and release excess water in keeping with regulatory water quality discharge limits.

In aligning our water reporting to the ICMM Consistent Water Reporting guide, we undertook an analysis of our operating sites’ water context using the WWF Water Risk filter. The results of this analysis were adapted with local site knowledge and are summarised graphically below. In addition, we present a group overview of our interactions with water over 2019.

In South Africa at our West Wits operations, we continue to manage acid mine drainage (AMD) that flows from the disused neighbouring mines each day. We have carefully managed the risk of water spilling from the West Wits water circuit by balancing our site water inventories. This somewhat delicate balance has thus far been achieved by accelerated water evaporation technologies and by using the water for the reprocessing of old tailings storage facilities after its acidity has been neutralised.

At Geita mine in Tanzania, we have initiated a project where the potential for using bacteria to directly remediate sulphate in groundwater, is being assessed. After a successful proof of concept field trial, the project is scaling up to a larger scale field trial. If this in-situ remediation approach succeeds, it has scope to be applied at other company operations.

Source: WWF Water Risk Filter

Source: WWF Water Risk Filter

Energy and climate change

For more than a decade, AngloGold Ashanti has been proactive in acting on climate change, both through its own strategy and through industry associations. In 2008, the company provided early leadership when it committed to an ambitious greenhouse gas (GHG) emissions intensity reduction target of 30% by 2022.

In the context of mining, emission targets become progressively more challenging to meet, given that mining is by its very nature more energy intensive each year. Lower grades mean more rock shifted and as mining progresses further away from infrastructure, so longer distances are travelled, requiring more energy. The group target was successfully achieved in 2018, ahead of the 2022 target date.

In 2019, we continued to mitigate our carbon footprint, marginally reducing our GHG emissions intensity by 1%, 31.8kg (2019) versus 32.1kg (2018) of GHG per tonne treated, and kept our absolute GHG emissions flat. This was despite a 3.7% increase in the total energy we used to sustain production. These improvements were led by continued benefits from energy efficiency gains at our South African mines, and which despite a 9.3% increase in the South African grid emission factor, managed a 8.5% reduction in their absolute emissions and a 9.2% reduction in their emissions intensity, compared to 2018.

External investor and consumer pressure around ESG issues, especially climate change, continues to intensify. This has been particularly acute in the past year and among some of AngloGold Ashanti’s largest shareholders. While additional asset sales will naturally lead to further reductions in emissions intensity, it is crucial for the company to develop a comprehensive new climate change strategy. This will seek to develop updated emission reduction targets, ensure that we insulate our operations against physical climate risks that may impact both our operations and host communities, implement appropriate climate disclosure systems and maximise further opportunities for cost-saving energy efficiency programmes. We will be guided by, among other things, the ICMM’s updated Climate Change Position Statement and through use of the ICMM-hosted Mining Climate Assessment Tool (MiCA), which we have already used to model impacts from climate change on TSF design and construction.

In 2020, we also intend transitioning our primary climate change disclosure platform, which has historically been done under the Carbon Disclosure Project, to disclosing in accordance with the Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD) recommendations.

Carbon tax

The South African carbon tax was signed into law by President Cyril Ramaphosa and gazetted in May 2019. The first phase of the act came into effect on 1 June 2019. This phase applies to Scope 1 emitters until 31 December 2022 and contains tax-free emission allowances. In 2019, our South African operation’s Scope 1 emissions were under 17Kt and will not attract material carbon taxes for the 2019 period.

Obuasi will initiate processes towards these certifications, once ramped up to full production in 2021.

Tailings

In response to the Brumadinho Tailings Storage Facility (TSF) failure, a coalition comprising the ICMM, the Principles for Responsible Investment (PRI) and UNEP co-convened an independent review of global tailings management practice. The aim was to establish an international standard on TSF management that seeks to eliminate catastrophic failures of TSFs.

Professor Bruno Oberle was appointed by the co-conveners as independent chair of the Global Tailings Review (GTR) panel. The GTR panel issued a public consultation draft in November 2019. AngloGold Ashanti provided comment on the draft standard through the ICMM, which consolidated comments from its 27 members companies. The standard is scheduled to be completed in 2020, and if it enjoys the support of all three co-convenors, it will be adopted by the ICMM as a requirement for its members.

The Brumadinho TSF failure also resulted in a significant global push for increased transparency around tailings facilities, prompting a coalition comprising the Church of England Pensions Board (CofE), the Swedish Council on Ethics and the UN-supported PRI to request that global mining companies publicly disclose essential information relating to their TSFs. Our response, which will be updated when appropriate, can be found on our mine tailings disclosure document.

Integrated closure management

There is an increased focus on managing the social aspects of closure as operations wind down, which is consistent with the ICMM’s recently updated guidance on closure management.

The social impact of closure is perhaps the most difficult element of closure to gauge and manage effectively. There is growing emphasis on contributing toward resilient and sustainable communities during the lifecycle of the mining operation.

We are working to achieve this goal by engaging with our communities, allowing them to identify the projects they would like to see developed in the areas of health, education, agriculture, small business and supply chain development. Simultaneously, we will continue to rehabilitate disturbed land as we mine, through this we face a number of challenges, which include ASM.

In Mali, the implementation of the Yatela mine’s closure plan remains on hold while the share purchase agreement with the government of Mali, signed in April 2019 and awaiting ratification, is finalised.

At Sadiola, mine operations ceased in 2018, while stockpile processing continued. An integrated mine closure plan was submitted to the government in October. In December, AngloGold Ashanti (AGA) together with its joint venture partner, IAMGOLD Corporation (IMG) agreed to sell their interests in Société d’Exploitation des Mines d’Or de Sadiola S.A. (“SEMOS”) to Allied Gold Corp (“Allied Gold”). SEMOS’ principal asset is the Sadiola Mine located in the Kayes region of Western Mali. AGA and IMG each hold a 41% interest in SEMOS with the remaining 18% interest held by the Government of Mali (see press release for more details).

At Geita in Tanzania, the mine submitted an integrated mine closure plan to the National Mine Closure Commission in October 2019. Discussions around the posting of a rehabilitation bond, in the form of a bank guarantee, will start once the mine closure plan is approved.