Integrated report <IR> 2020

Integrated stakeholder engagement

Effective management of stakeholder relationships has a direct bearing on our ability to deliver on our strategy.

Stakeholder engagement helps improve our understanding of our external operating environment, allowing for informed decision-making. We engage regularly with key stakeholders to better appreciate their views of AngloGold Ashanti, to understand their ambitions and requirements, and to identify potential risks, opportunities and material issues.

Our stakeholder engagement approach

We are committed to collaborative stakeholder engagement. Our stakeholder engagement process is integrated and inclusive and aims to balance the needs, interests and expectations of stakeholders with those of the company. It is critical at every stage of our business, from exploration through to mine closure.

Oversight and accountability

The board has ultimate responsibility for stakeholder engagement. The Social, Ethics and Sustainability Committee assists with oversight of material stakeholders and their issues. A formal stakeholder engagement framework provides for structured and constructive engagements at appropriate management and operational levels.

Identifying our key stakeholders

We identify and prioritise our key stakeholders based on their ability to impact our business and influence decision-making, taking into account the:

  • Extent to which AngloGold Ashanti depends on their support to achieve our strategic objectives
  • Extent to which they can affect AngloGold Ashanti and its performance
  • Significance of the both the stakeholder and their respective issues to the company
  • Risk to AngloGold Ashanti of not effectively engaging with the stakeholder, or addressing their issues

We have identified our key stakeholders and have conducted an internal assessment of the quality of our relationship with each, based on the following broad classification:

  • Strong = collaborative and mutually advantageous
  • Cordial = sufficiently involved to achieve common goals
  • Weak = requires some effort and consultation to achieve consensus

Engaging key stakeholders

In determining the key stakeholders, we identified the significance of our engagement with each, their primary concerns and expectations, our response to those concerns and expectations, and the potential value for each stakeholder.

icon Investment community

Quality of engagement: Strong

Includes: Shareholders, debt funders and other providers of capital, investment and ESG analysts, prospective investors and financial media

Invest in the company, provide financial capital or information to facilitate investment-decision making

Transparent and consistent engagement on our performance, management of expectations and delivery on our strategy can enhance investor sentiment and our reputation, improving access to capital and our valuation

How we engage
  • By email, telephone, meetings or video conference
  • Interim and annual results presentations
  • Media Interviews
  • Annual reports
  • Website
  • Investor days
  • Site visits
  • Investor conferences, roadshows and one-on-one meetings
  • Corporate action and regulatory announcements
  • Annual general meeting
Stakeholder concerns
  • ESG performance and concerns
  • The valuation gap between AngloGold Ashanti and many of its international peers
  • Potential to change primary listing
  • Asset sales and their consequences
  • Impact and management of COVID-19
  • Long-term financial viability
  • Progress on Obuasi redevelopment
  • TSFs and their management
  • Relations with Indigenous Peoples and First Nations
  • Performance and disclosure on critical metrics such as safety, operational, financial and ESG metrics
  • Jurisdictional risk and cash conversion challenges
  • Silicosis settlement
  • Remuneration – policy and implementation
  • Changes at executive and board level
AngloGold Ashanti’s concerns
  • Providing a clear understanding of our strategy and the plans in place to address risks
  • Information on plans to grow and sustain the company
  • Highlighting the skills in place to achieve our strategy
Our response
  • Consistent reporting of company performance, improved transparency of ESG performance,
  • Continued direct engagement with shareholders, analysts and media
  • Successful conclusion of asset sales
  • Regular reporting on protocols and systems to closely manage and monitor the effects of COVID-19
  • Reduced debt and significantly improved balance sheet
  • Improved cash flow generation and increased dividend pay-out ratio
  • Maintaining financial discipline and deliver on our strategy
  • Tshiamiso Trust initiating work on the silicosis settlement, albeit with impact on timing due to COVID-19
  • Improved the quality of our asset portfolio to unlock value for shareholders
  • Concluded significant work aimed at improving remuneration practices and disclosures
  • Prioritisation of CEO recruitment
  • Address underlying catalysts to valuation gap
Value to stakeholder
  • Return on investment – share price and dividends
  • Long-term sustainability of business
  • Comprehensive and transparent reporting
  • Effective risk management, and ethical conduct and corporate governance
  • Good corporate citizenship and overall ESG performance
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icon Employees and unions

Quality of engagement: Cordial

Includes: Employees at all levels of the Company and labour unions representing employees at certain operations

Represents our human capital that provides the manpower, knowledge, skills and expertise necessary to the conduct of our business

Employees are fundamental to delivery on our mission and strategy. Constructive employee engagement promotes stable employee relations, enhances productivity, and ensures alignment in delivering on our strategic objectives

How we engage

Employees – frequent and ongoing:

  • Internal electronic newsletters, briefs, emails, intranet
  • Management meetings, staff briefings, town hall sessions
  • Safety and health awareness campaigns
  • Employee surveys
  • Performance and exit reviews

Unions – more formal and structured:

  • Regular, diarised meetings
  • More frequent during wage negotiations
Stakeholder concerns
  • COVID-19 – response and management
  • Asset sales and their implications for employees
  • Job security
  • Terms of employment – employee benefits and incentives
  • Career and personal growth/development
  • Safety and safe workplaces, health and wellness
  • Gender equality and inclusivity
AngloGold Ashanti’s concerns
  • Productivity and maintaining focus on strategy and meeting guidance on production and other performance metrics
  • Succession planning
Our response
  • Implemented COVID-19 protocols tailored to address circumstances at each operation – accompanied by a focused communications plan and ongoing feedback to central crisis management team
  • Ensured no employee lost wages or benefits during 2020 related to COVID-19 lockdowns and other disruptions
  • Continued strengthening of the balance sheet to better weather short- and medium-term volatility in the gold price and general operating environment
  • Successfully concluded asset sales in South Africa and Mali, minimising job losses in the process
  • Debt consolidation
  • Steady delivery on our strategy by maintaining financial discipline, reducing debt, tight cost control, increasing shareholder dividends, portfolio re-investment
  • Improvements to quality of our asset base and unlocked value for shareholders by adhering to strict investment criteria
  • Concluded significant work to improve remuneration practice and disclosure
Value to stakeholder
  • Improved job security
  • Reward and recognition
  • Education and training
  • Talent management and career planning
  • Inclusivity, equity and diversity
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icon Governments and regulators

Quality of engagement: Cordial

Includes: National, regional, local government and various regulators (mining, environmental, social, labour, taxation)

Government and regulators develop and implement legislation and associated regulations that can significantly affect AngloGold Ashanti as a whole or one or more of our operations; impact varies by region and country

Ongoing engagement aims to communicate the condition of the business, its challenges and opportunities, and to mitigate regulatory and political risk, encourage certainty, strengthen our licence to operate and generally promote an environment conducive to investment and development. Proactive engagement with governments includes collaborating on their service delivery responsibilities

How we engage
  • Engagement is regular and ad hoc, depending on matters arising or company developments, industry-related changes and opportunities for dialogue specific forums like industry conferences and government-organised events
  • In person, virtual, direct or indirect, at company level or through industry partners which lobby on behalf of the mining industry. See Industry partners below for indirect engagement with governments and regulators
Stakeholder concerns
  • The reason for and impact of asset sales
  • Project development updates – e.g. in Ghana and in Colombia
  • Investment time lines and benefits for local communities
  • TSF management, especially with the Brazilian authorities
  • Ensuring flow of benefits from mining to the state at national, local and community levels
  • Monitoring of regulatory compliance – safety, local economic and community development, and taxation
AngloGold Ashanti’s concerns
  • Mitigation of political and regulatory risk
  • Policy development and regulatory proposals
  • Dispute resolution – repatriation of funds (DRC) and tax refunds (Tanzania)
Our response
  • Continued engagement with government stakeholders at all levels
  • Improved internal systems and activities to meet requirements of regulatory changes
  • Maintained dialogue in the DRC on the repatriation of funds held in the country through our joint venture partner and operator, Barrick
  • Maintained dialogue in Tanzania and Colombia
  • Continued payment of taxes, royalties and duties
  • Engaged with governments and relevant regulators in countries in which asset sales were underway to ensure the transactions were in line will local legislation. Also obtained the necessary approves to conclude the transactions as well as to fulfil conditions precedent for the respective sale agreements
  • Complying with all laws and regulations relating to TSFs
Value to stakeholder
  • Contributions to the national fiscus through the payment of taxes, royalties and duties
  • Collaboration on infrastructural projects
  • Investment in local economic development
  • Compliance with and reporting on regulatory obligations that demonstrate constructive partnerships with government
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icon Communities

Quality of engagement: Cordial

Includes: Those communities in the vicinity of our operations on whose goodwill we depend, and who are directly impacted by mining operations

We are accountable to our host communities to be a responsible corporate citizen. Communities can directly affect our social license to operate. In line with our values, we aim to leave them better off for our having been there once mining has ceased

We aim to manage expectations, uphold human rights and ensure community and asset security. Mutually beneficial partnerships with host communities enhance shared value creation, which help in retaining our social licence to operate

How we engage
  • A forward-looking community engagement strategy is in place to identify potential areas of concern within local communities
  • Engagement is focused on local economic development programmes, developed and run in partnership with local governments and host communities. These contribute to economic growth, stimulate income-generating opportunities, create employment, and aim to nurture sustainable livelihoods beyond the life of mine
  • Directly, through various community forums, depending on the host country and the matter at hand. These forums include representatives from the company, the community and local authorities
  • Grievance mechanisms enable communities to lodge their complaints, which are followed up until resolution is reached
Stakeholder concerns
  • Employment and procurement opportunities
  • Sale of assets in South Africa and Mali, including the incorporation of mine areas into local municipalities and donation of facilities to local communities in South Africa
  • Legacy issues (social and environmental), post asset sale in South Africa
  • Local enterprise and economic development programmes
  • Environmental and social impact of mining activities on communities (noise, dust, water issues)
  • Education and infrastructure
AngloGold Ashanti’s concerns
  • Social licence to operate
  • Potential business interruptions
  • Legacy issues (social and environmental), post asset sale in South Africa
Our response
  • Ensured the redevelopment of Obuasi is in line with commitments made to the Government in Ghana and the community
  • Optimised participation by local companies and the transfer of skills in the Obuasi redevelopment project, while continuing with localisation in other areas
  • Ensured implementation of the corporate social responsibility plan for Geita
  • In Brazil, engaged on the management and safety of TSFs, and implementation of emergency preparedness plans
  • In the South Africa region, various engagement forums held with local authorities and host communities relating to the sale of assets
  • Honouring long-term obligations to certain former employees and their dependants
  • Maintained engagement with host communities
Value to stakeholder
  • Investment in community socio-economic development projects
  • Local employment opportunities
  • A stimulus for local economic growth
  • Community health and safety, including malaria, Ebola, silicosis and more recently COVID-19
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For more information on our work to establish self-sustaining communities, see <SR>.

icon Suppliers

Quality of engagement: Strong

Includes: Range of suppliers – from established multi-national corporations to smaller, more localised businesses – and labour contractors

Provide vital inputs required to conduct our business activities – raw materials, products and services

We endeavour to ensure suppliers are aligned with our business ethics and values, internal policies and standards, and codes of behaviour

How we engage
  • Direct engagement via our supply chain/procurement teams
  • Management of service level agreements
  • Website
  • Service delivery feedback meetings
Stakeholder concerns
  • Procurement opportunities – continuity of contracts and sustainability of business, especially with the COVID-19 challenges
  • Promotion of local procurement and capacity building to empower local communities
AngloGold Ashanti’s concerns
  • Responsible ESG practice – includes ensuring alignment with our Code of Ethics, and encompasses human rights, labour relations, employment and environmental practices, anti-bribery and corruption, and safety procedures
  • Contract terms and performance – negotiating prices and cost increases aligned with our strategic focus areas
Our response
  • Well-developed and implemented policies relating to suppliers, local procurement
  • Promote increased participation by local companies, for example, the Obuasi redevelopment project
  • Regular, ongoing engagement and communication with key suppliers
  • Increased focus on procurement with local suppliers
  • Timely payment to and support for small, medium, and micro-enterprises (SMMEs) to create business opportunity and growth
Value to stakeholder
  • A source of business and local economic activity in host communities and host countries
  • Longevity of our business supports the economic survival of suppliers
  • Multiplier effect
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icon Industry partners and peers

Quality of engagement: Strong

Includes: National or local mining/industry bodies, the ICMM, WGC, among others

Provides a joint platform for addressing industry-related developments and concerns, as well as initiatives for sharing lessons learnt and best practice

Engagement aims to garner support and promote collaboration with other shared stakeholders – governments, regulators, employees, unions and communities – on matters of mutual concern, to work together to reduce regulatory and political uncertainty, and to promote long-term partnerships. This includes joint efforts to find solutions to sector or industry challenges, and on any new developments to promote the future of the industry

How we engage
  • Various engagement platforms including conferences, meetings and other industry forum
  • As members of the ICMM, we attend two virtual membership meetings/calls annually, and participate in several ICMM working groups focused on different industry-related matters
  • World Gold Council provides a platform to share with and learn from international gold industry peers
Stakeholder concerns
(varies by region/country)
  • Regulatory changes in Tanzania
  • Community challenges
  • Silicosis settlement (South Africa)
  • TSF management
  • Growing demands for responsible mining practices and related ESG performance
  • Industry safety performance
  • Environmental management and compliance
  • Decarbonisation and impact of climate change – reporting requirements
AngloGold Ashanti’s concerns
  • As above
Our response
  • Collaboration with industry bodies to share lessons in important areas, and to co-create solutions to common challenges, including the design of safer, cleaner mining vehicles
  • Collaboration with industry bodies to manage and improve regulatory and political certainty
  • Participated in the establishment of the Tshiamiso Trust which will oversee the payment of claims, among others
  • Collaborated in development of the WGC’s Responsible Gold Mining Principles
  • Enhanced TSF management – have begun process to convert to dry stacking in Brazil
Value to stakeholder
  • Provides a platform for dialogue and joint lobbying on sector-specific issues and concerns and to raise awareness of mining-related concerns
  • Facilitates development of sector-based strategies and best practice guidelines on topics of shared interest such as safety and TSFs, among others
  • Enables collaboration on matters of joint concern such as the roll-out of COVID-19 programmes to provide PPE and sanitisation, among others
  • Sharing of technical expertise and advice
  • Community and infrastructural development
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Engaging with media

Media engagement facilitates the understanding of AngloGold Ashanti, among government stakeholders, the investment community and general public, promotes transparent and accurate reporting, and supports constructive relationships with other stakeholders. It aids management of our reputation and improves transparency and credibility, contributes to our social licence to operate, and can address speculation and misinformation in the public domain.