ANGLO AMERICAN
SUSTAINABILITY PERFORMANCEAndile Sangqu, Executive Head: Anglo American South Africa
OVERVIEW
WHY SUSTAINABILITY MATTERS
A FOCUS ON SOUTH AFRICA• Our people
• Our host communities
• Our partners
ADDRESSING OUR MOST MATERIAL ISSUES• Safety
• Health
• Social impacts
• Socio-Economic development
• Environmental impacts
• Water
• Climate change
• Mine closure
• Tailings facilities
WHY SUSTAINABILITY
MATTERS
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Sustainability issues are critical for the
delivery of our strategy
Mining has relatively small global
footprint, but results in significant local
impacts
Local approach to sustainability gives
us our legal and social licence to
operate
Zero harm, constructive relationships
with stakeholders, resource efficiency,
and 100% compliance are core
characteristics of high-quality assets
WHY SUSTAINABILITY MATTERS
MISSION
Together, we create
sustainable value
that makes a real
difference
VISION
To be partners in the
future
FOCUS
ON SOUTH AFRICA
MEANINGFUL CONTRIBUTION
TO SOCIO ECONOMIC
DEVELOPMENT
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SOUTH AFRICA: THE CONTEXT
Mining has historically provided the backbone of South Africa’s
economy and continues contribute be one of the key sectors of
the economy
The mining sector is pivotal to the task of redressing historical
and social inequalities in a sustainable manner
We are doing our best to adapt to the challenging operating
context
We continuously seek collaboration opportunities to support
growth and sustainability in the mining sector
We engage with government and labour, with the aim of
ensuring the sustainability of the mining sector and its continued
contribution to the country’s
We are committed to the objectives of the MPRDA and the
Mining Charter, as such we regard transformation as a business
imperative
We are also committed to economic growth and development
objective of the National Development Plan
Lambasi Harvesting at Lusikisiki, Easten Cape
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SOUTH AFRICA: OUR EMPLOYEES
Our employees are the business. We strive to build a
culture that reflects and harnesses a rich diversity of
ideas and perspectives. We support the identification,
development and retention of HDSAs
Our Performance
Internal targets are set over and above those set by legislation
63% HDSAs in management
Gender diversity remains a priority - 17% women in overall
workforce
$73.2m (R936m) spent on HDSA training - 4.8% of annual HDSA
payroll
All business units achieved housing and accommodation Mining
Charter requirements
$149m (R1.9bn) spent on housing initiatives – more than 4,000
houses built since 2010
Micahel Faku at the Anglo American Chairman's Fund-
supported Middestand Evanfeliese Sord computer centre
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SOUTH AFRICA: OUR COMMUNITIES
Mining companies and mining communities must
work together to help create mutual trust and
success. Only by working together can we change
the way people think about resource development
and how we can make a valuable difference to
people in communities in their everyday lives.
Our Performance
Social and Labour Plans are in place at each of our operations,
$41m (R520m) spent in 2015
$70m (R891m) spent on community development programmes
Engagement with community representatives to identify priority
projects that will best address community needs
Focus on education, health, infrastructure and capacity
development
Diagnostic tool to assess compliance with SED plans
Chairman’s Fund is a dedicated corporate social investment
arm
Mphakiseng Tsotetsi pictured with her baby at the Lilian
Mambakazi Community Health Centre in Standerton, which
was recently handed over to the local government
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SOUTH AFRICA: OUR PARTNERS
Diversifying ownership in our mining assets,
increasing local procurement, and facilitating
enterprise development and beneficiation are all
critical means of advancing the empowerment of
HDSAs and contributing to the socio-economic
development of our communities
Our Performance
We exceeded Mining Charter ownership requirements
$5.2bn (R67bn) value of BEE transactions since 1994
Flagship mining companies formed as a result of our BEE
partnerships. E.g. Exxaro, ARM, Inyosi Coal, Royal Bafokeng
$2.87bn (R36.7 bn) procurement expenditure with BEE
empowered companies
BEE procurement: AASA achieved 75% on capital goods, 82%
on services and 79% on consumables
All SA-based employees are members of an ESOP
8,624 employment opportunities created through Anglo Zimele;
40% of Zimele beneficiaries are female while 35% are youth
$24m (R308m) funding provided for 321 businesses in 2015Winslow Nyakudya pictured at the Anglo American Zimele
Road show in Mthatha
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SOUTH AFRICA: EMPLOYEE INDEBTEDNESS AT ANGLO
AMERICAN PLATINUM – A CASE STUDY
Post the five-month strike in 2014, research
was conducted into the financial position of
Anglo American Platinum employees:
- Around 1,330 Anglo American Platinum
employees were under administration
- Debt to income levels of the average
employee in Rustenburg:
24% were at ‘dangerous levels’ (75% plus of
their income is used to service debt)
26% were ‘in trouble’ (between 51% and
75% of their pay used to bring down debt)
Summit Financial Partners had been auditing
employees’ garnishee orders since 2011 and
had collectively saved employees
approximately R3 million over a 3-year period
Anglo American Platinum extended Summit’s
services to include a financial wellness offering
– to run from 2014-2016
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SOUTH AFRICA: EMPLOYEE INDEBTEDNESS AT ANGLO
AMERICAN PLATINUM – A CASE STUDY
Programme was named ‘Nkululeko’, meaning Freedom
– a call to action for employees to embark on a journey
to financial freedom
From October 2014 to August 2016:
- 8,695 employees consulted a Nkululeko consultant
- Over R32,2 million saved for employees annually on
debt instalments
- 964 debt relief solutions have been implemented
- 1,000 audit cases on garnishee and admin orders
and loan agreements
- 7,480 cases of reckless lending identified
- Garnishee orders have reduced from 5,877 in March
2011 to 797 in June 2016
Employees told their own stories of how they had
benefitted financially from the programme
Employee indebtedness programmes are also running
across our other business units and showing positive
results
SUSTAINABILITY
ADDRESSING OUR MOST
MATERIAL ISSUES
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SAFETY
Safety is a matter of basic human rights
as well as an investment in an engaged,
motivated and productive workforce
Our approach
Leadership
Effective planning and standards
Supervision
Incident management
Risk management
Performance
Deeply disappointing increase in number of
losses of life in 2016 after years of improvement
Injury rates continue to improve
Focus on Zero HarmUnrelenting focus on Zero Harm
41% We are encouraged by continued
improvement in total injury rate since 2012
Critical controlsApproach to safety focused on implementing
controls to manage risks
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HEALTH
Managing occupational health risks, and
promoting health and wellbeing in the
workplace, protects our people, enhances
productivity, and is essential for
minimising potential long-term liabilities
Our approach
Reducing occupational health risks as source
Employee well-being programmes – including
HIV/TB – that support the overall health of our
workforce
Partnerships to support the health of communities
Performance
42% of employees exposed to noise levels and 9%
to dust levels above OEL. All wear PPE
Reduction in number of new cases of occupational
disease; no new cases of silicosis since 2011
Leader in HIV/AIDS
78,993employees and contractors tested in southern Africa
92% of identified HIV-positive employees enrolled in
wellness programmes
Community healthContinued investment in local health partnerships to
support communities near mines and in labour sending
areas
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MANAGING SOCIAL IMPACTS
We seek to maximise the benefits of mining and
mitigate its potential negative effects, which can
trigger stakeholder opposition, resulting in project
delays, disruption to our operations, and reputational
damage
Our approach
Social performance entrenched in Values and Business Principles
Social Way outlines mandatory performance standards
SEAT provides practical tools for managing social impacts,
improving development and stakeholder engagement
Enhancing stakeholder
dialogue is a critical aspect of SEAT and our overall social performance
programme
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MANAGING SOCIAL IMPACTS…CONTINUED
Performance
Assessment results show a steady improvement
across almost all the requirements and decline in
non-compliances
Level 3–5 social incidents are reported to the
Board Sustainability Committee
319 Level 3–5 incidents recorded in 2015
A small number of incidents impacted production
slightly
Social conflict impacted Platinum operations. Complex
causes including poor public service delivery and lack of
employment opportunities.
We’ve been working with the DMR with regards to issues of
public service delivery, and a task team with community
representatives has been established to serve as an
engagement platform. The Minister appointed the South
African Human Rights Commission to serve as the mediator
between the communities and the mine.
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MAXIMISING BENEFITS
Delivering a ‘fair share’ of benefits supports our
social and legal licenses to operate and can
position us as a partner of choice for host
governments and communities
Our approach
Supporting the productivity of local markets
Supporting productivity of public services
Performance
Support productivity of LOCAL MARKETS
Support productivity of PUBLIC SERVICES
Local procurementExternal capacity development
Enterprise developmentSynergies from mine infrastructure
Workforce development Social investment
Skills sharing/Employee volunteering
$23,365mtotal value distributed
75%value distributed in
developing countries
$10,000mspent with suppliers
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MAXIMISING BENEFITS…CONTINUED
Enterprise development
One of the most effective means of
ensuring sustainable livelihoods
Local procurement
Can reduce expectations on the
business to deliver public services
External capacity building
Can reduce expectations on the
business to deliver public services
110,780jobs supported in SA,
Botswana, Peru, Brazil,
Chile since 2008
62,394SMEs supported inside
and outside supply chain
17Municipalities supported
in SA and Latin America
$5,4mMillion investment in
external capacity building
$1,500mspent with local suppliers
world-wide
Caroline and Rebaone Matloko living in one of the new
houses in Postmasburg built for Kolomela Iron Ore mine.
Rebaone is a Komatsu 730 Haul truck operator on the mine
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MANAGING ENVIRONMENTAL IMPACTS
Ensuring responsible environmental
management through all the life-cycle
stages of an operation can influence
our future access to land and capital,
improve resource security, and
reduce operational costs and closure
liabilities
Our approach
Mandatory Environment Way management
system standard
Supported by a set of performance standards
on water, waste, air quality, etc
Environmental management increasingly
being incorporated into integrated approach
to operational risk management
Debmarine Namibia: SS Nujoma marine diamond mining vessel
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MANAGING ENVIRONMENTAL IMPACTS…CONTINUED
Performance
Track level 1-5 environmental incidents; 3-5 incidents reported to
the CEO and Board
Steady progress in reducing the number of significant (3-5)
incidents from 21 to 6 in five years
One incident in SA during 2015 at Thabazimbi - discharge of water
into Crocodile river, but no immediate change to the aquatic
ecosystem
No permanent environmental harm associated with 2015 incidents,
nor production impacts
Mindful of water incidents recurring once droughts lift
Indigenous flora near Kolomela mine in the Northern Cape
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WATER
Water is a human right and a critical input to our
business. To maintain our licence to operate, we
cannot degrade water quality or compromise the
rights of other water users
Our approach
Three focus areas:
Water security in water scarce regions
Water quality, particularly at operations that have an
excess of water
Water balance management, particularly at operations
that are prone to seasonable flooding and droughts
Around 75% of our current
portfolio is located in high-water-
risk regions Percy Nxumalo and Islay-Jane Sparks at the Kolomela Aquifer
Recharge pump station, where water pumped from the mining
pits is fed back into an adjacent aquifer
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WATER…CONTINUED
Performance
All operations have risk-based water efficiency targets in
place
Water security has impacted production at Los Bronces in
Chile, but is under control following several technical
interventions
Water quality challenges being addressed by treatment
plants in high-risk cases
Moving to passive treatment technologies that are low-cost
and viable post closure
Looking ahead: we see opportunities in playing a
leadership role in catchment level water issues
25m m3
Volume of water saved
by water efficiency
projects in 2015
222m m3
Volume of new water
used in 2015
64%of total water
requirements are met by
recycled/reused water
Raesetja Teffo and Malesela Kutumela discussing water
efficiency levels at the Mogalakwena north concentrator
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CLIMATE CHANGE
The Paris Agreement
will, over time, effect
fundamental changes
to our economic and
social systems. Anglo
American seeks to
understand the
implications of these
on our value chain and
maximise opportunities
associated with the
transition to a low-
carbon future
Hydrogen Fuel Cell Electric Vehicles. A group of companies is aiming to set two new records for FCEVs with a continuous
five-day and five-night drive around the M25 in the UK as part of the London Hydrogen Network Expansion. Hydrogen
FCEVs produce no harmful tailpipe emissions with water being the only by-product. With range and refuelling times similar
to those of petrol or diesel cars, they can be seen as direct replacements for conventional vehicles
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CLIMATE CHANGE
Our approach
Our climate-change strategy aims to:
Reduce our carbon footprint mitigate exposure to climate-change
regulation
Manage climate risks and opportunities associated with products
and investments
Drive greater resilience to the physical effects of climate change
within our business and host communities
Performance
2015 energy and GHG targets met; all operations have new targets
in place
Improving market risk/opportunity profile following coal divestment
decision. Opportunities linked to climate change for platinum market
Some early work on renewables, but opportunities still limited
Leading work on climate adaptation studies and planning
Power system in SA will remain constrained; business continuity
and emergency response plans in place
~$100mEnergy savings from
ECO2MAN and BI projects
325Number if energy and GHG
savings projects
5.8m GJEnergy saved
4.6 MtCO2-e avoided
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MINE CLOSURE
We emphasise the importance of designing, planning
and operating a mine in consultation with communities
and with closure in mind. The aim is to reduce liabilities
to our business and leave a positive legacy
Our approach
Industry leading Mine Closure Toolbox seeks to ensure that:
Opportunities, risks and liabilities are identified
Closure plans are fully costed
Provision is made for the planned operational life of the mine or
premature closure
Performance
Decision to close Thabazimbi mine in 2015 after 80 years and
several life extension projects
Mining and production ceased June 2016. Progressive rehabilitation,
demolition and asset sale in progress
800 employees and 360 contractors affected. Extensive consultation
throughout and investment in economic development projects
independent of mining
Environmental Auditing at Mogalakwena North - taking
photographs from fixed positions for environmental
comparisons - Riaan Van Zyl (Water Officer) and Calvin
Shibusi (Environmental Assistant)
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TAILINGS FACILITIES
Applying best practise standard to the management of
waste storage facilities is an ongoing focus for Anglo
American
Our approach
Apply the ‘avoid, reduce, re-use and recycle’ management hierarchy
and actively explore the re-use of by-products
New mineral residue management standard implemented from
2014-2018
We seek to move beyond compliance
Facilities are classified in terms of potential safety, health,
environmental and reputational impacts
These factors determine design criteria; the frequency of monitoring
and inspection; assignment of personnel; and governance structure
Performance
Series of specific reviews untaken following Samarco to ensure risks
are adequately managed – no significant concerns identified
No Level 3-5 incidents relating to mineral waste in recent yearsInspection at El Soldado’s El Torito tailings dam in Chile
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