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AngloGold Ashanti Outlines Transformation of South Africa Mining Industry
AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1944/017354/06
ISIN: ZAE000043485 – JSE share code: ANG
CUSIP: 035128206 – NYSE share code: AU
(“AngloGold Ashanti” or the “Company”)
31 March, 2015
NEWS RELEASE
AngloGold Ashanti Outlines Transformation of South Africa Mining Industry
AngloGold Ashanti notes the media release by the Department of Mineral Resources (DMR) today on the state of
transformation in South Africa’s mining sector. The company fully supports the transformation objectives enshrined in
the Mineral and Petroleum Resources Development Act (MPRDA) and has taken meaningful steps to give effect to
them.
Companies in South Africa’s mining industry had to comply with the targets set in the Mining Charter (Charter) by last
year. The Charter governed a range of pillars of transformation, including ownership, human resources development,
procurement and enterprise development, improvement of employees’ housing and living conditions, mine community
development, and sustainable development and growth of host communities.
This year, a template was designed by the DMR and companies were required to make inputs needed to provide
information to assess their success in achieving the key elements of the Charter. AngloGold Ashanti completed the
template and scored well against each of the pillars of the Charter, in most cases exceeding its targets as outlined
below.
* Ownership: 26.8% (26% target)
* Human resources development: 6.59% (5% target)
* Employment equity: 55.6% board representation, 42.9% top management, 40% senior management, 49.3%
middle management, 57.4% junior management and 52.6% core skills (All versus 40% target)
* Procurement and enterprise development: capital goods 53% (40% target); services 73% (70% target);
consumable goods 67% (50% target)
* Housing and living conditions: Conversion of residences to single rooms – 100% completed; family units 100%
completed
* Mine community development: West Wits and Vaal River Social and Labour plans approved by DMR
* Sustainable development and growth:
- DMR approved a revised Environmental Management Programme (EMP) for both West Wits and Vaal
River in 2012. Formal environmental performance assessments were conducted and submitted to the DMR
in 2014.
- Annual Health and Safety Targets: 95.8% as at the end of 2014 – reported annually
AngloGold Ashanti is of the view that is has complied with the Charter. AngloGold Ashanti understands that the DMR
and the Chamber of Mines will ask a court to determine whether black economic empowerment (BEE) ownership
transactions concluded after 2004, where the BEE ownership level has fallen due to the relevant BEE shareholders
selling down their interest, should be included in the calculation of progress made against ownership targets. While
transactions comprising the majority of AngloGold Ashanti’s BEE ownership credit (20.8%) took place before 2004, and
thus are not contested, we welcome the use of the court to provide clarity in respect of transactions completed after
2004. AngloGold Ashanti’s own reading of the legislation at the time each of its BEE transactions took place is that they
qualified for recognition. The award of New Order Mining Rights by the DMR, which explicitly refer to these transactions,
supports this point. AngloGold Ashanti is accordingly of the view that it has complied with the ownership requirements of
the Charter.
“The progress made by AngloGold Ashanti and by the industry at large, provides a beacon for transformation to South
Africa as a whole,” Srinivasan Venkatakrishnan, AngloGold Ashanti Chief Executive Officer said. “The cooperative
approach between the industry and the DMR in seeking clarity on the status of BEE ownership transactions post-2004
will provide regulatory certainty that the industry needs to attract inward investment.”
“The Chamber and its members have invested significantly in transforming the sector as agreed in the Mining Charter
process that started in 2002,” the Chamber of Mines said. “It is our view that the transformational change has been both
profound and substantial, and that the process towards normalizing the country’s economic landscape is now
irreversible.”
ENDS
31 March 2015
Johannesburg
JSE Sponsor: Deutsche Securities (SA) Proprietary Ltd
Contacts
Media
Chris Nthite +27 11 637 6388/+27 83 301 2481 cnthite@anglogoldashanti.com
Stewart Bailey +27 81 032 2563 / +27 11 637 6031 sbailey@anglogoldashanti.com
General inquiries media@anglogoldashanti.com
Investors
Stewart Bailey +27 81 032 2563 / +27 11 637 6031 sbailey@anglogoldashanti.com
Sabrina Brockman (US & Canada) +1 (212) 858 7702 / +1 646 379 2555 sbrockman@anglogoldashanti.com
Fundisa Mgidi (South Africa) +27 11 6376763 / +27 82 821 5322 fmgidi@anglogoldashanti.com
Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the
economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs, all-in sustaining costs, all-in costs,
cost savings and other operating results, return on equity, productivity improvements, growth prospects and outlook of AngloGold Ashanti’s
operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial
operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions, dispositions or joint venture
transactions, AngloGold Ashanti’s liquidity and capital resources and capital expenditures and the outcome and consequence of any potential or
pending litigation or regulatory proceedings or environmental health and safety issues, are forward-looking statements regarding AngloGold
Ashanti’s operations, economic performance and financial condition. These forward-looking statements or forecasts involve known and unknown
risks, uncertainties and other factors that may cause AngloGold Ashanti’s actual results, performance or achievements to differ materially from
the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti
believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such
expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a
result of, among other factors, changes in economic, social and political and market conditions, the success of business and operating initiatives,
changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in gold prices and
exchange rates, the outcome of pending or future litigation proceedings, and business and operational risk management. For a discussion of
such risk factors, refer to AngloGold Ashanti’s annual reports on Form 20-F filed with the United States Securities and Exchange Commission.
These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actual results to differ materially from those
expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results.
Consequently, readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes no obligation to
update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements
attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.
This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures
and ratios in managing its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported
operating results or cash flow from operations or any other measures of performance prepared in accordance with IFRS. In addition, the
presentation of these measures may not be comparable to similarly titled measures other companies may use. AngloGold Ashanti posts
information that is important to investors on the main page of its website at www.anglogoldashanti.com and under the “Investors” tab on the main
page. This information is updated regularly. Investors should visit this website to obtain important information
about AngloGold Ashanti.
AngloGold Ashanti Limited
Incorporated in the Republic of South Africa Reg No: 1944/017354/06
ISIN: ZAE000043485 – JSE share code: ANG CUSIP: 035128206 – NYSE share code: AU
Website: www.anglogoldashanti.com
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