Positioning for the Future
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ANGLO AMERICAN PLATINUM LIMITED ANGLO AMERICAN PLATINUM LIMITED INTEGRATED DELIVERING CHANGE BUILDING RESILIENCE REPORT POSITIONING FOR THE FUTURE 2016 INTEGRATED REPORT 2016 DELIVERING CHANGE CONTENTS BUILDING RESILIENCE POSITIONING FOR THE Our business FUTURE 1 Our approach to reporting 3 Group performance 4 Our material issues Globally, the mining sector is weathering 6 Chairman’s letter 8 At a glance unprecedented challenges. Anglo American Platinum 10 Our business model (Amplats) is proving its resilience and ability to manage 12 Chief executive officer’s review change through a focused strategy that is positioning Business context and strategy our group for the future. 16 Our strategy journey 18 Strategic approach to sustainability By concentrating on elements within our control and 24 Performance against operational targets building the foundations for continuous improvement, 26 Our external environment we are delivering on our strategy. We are shaping our 30 Our approach to risk management and our top risks business for a sustainable future – driving the 34 Stakeholder engagement and issues transformation that will make us more robust, 37 Direct value added to South Africa responsive and competitive. Performance review As we focus strategically on value and not volume, we 38 Financial review 46 Five-year review are repositioning our portfolio by exiting certain assets, 48 Operations review focusing on market development opportunities and 64 Process overview building positive relationships with all our stakeholders 66 Ore reserves and mineral resources review while our operations concentrate on optimising their Governance potential. 70 Our board 73 Our executive committee 76 Corporate governance report 82 Audit and risk committee report 84 Social, ethics and transformation committee report 88 Nomination committee report 89 Safety and sustainable development committee report Refers to other pages in this report. 92 Remuneration report 108 Analysis of shareholders Supporting documentation on the website 109 Shareholders’ diary Full annual financial statements Full mineral reserves and resources report Supplementary report Appendices GRI referenced index 110 Directors’ responsibilities and approval of the UN Global Compact Assessment annual financial statements King III application register 111 Company secretary’s certificate 112 Independent auditor’s report 113 Summarised consolidated financial statements 131 Independent assurance report 134 Safety indicators 136 Human resources indicators 139 Environmental indicators 141 Glossary IBC Administration www.angloamericanplatinum.com/investors/annual-reporting/2016 Separate document Notice of Annual General Meeting 2016 OUR BUSINESS: OUR APPROACH TO INTEGRATED REPORTING OUR APPROACH TO REPORTING Throughout this report, and in supplementary information on our website, we focus on Our business the relationships between factors, both external and internal, that enable Amplats to create value. Reporting framework INTEGRATED REPORT · International <IR> Framework of the International Integrated Our annual integrated report provides a holistic Reporting Council assessment of the group’s ability to create value. · South African Companies Act 71 2008 (Companies Act) · JSE Listings Requirements This report includes information extracted from the · King Report on Corporate Governance for South Africa full governance and remuneration report as well as (King IV) from the supplementary report. It includes non- · Global Reporting Initiative (G4) guidelines financial aspects which, if not managed, could have a · Reporting according to AA plc Group S&SD indicators, material impact on our performance and on our definitions and guidance notes for non-financial indicators. business. These are available on request. The report is developed for a wide range of Assurance stakeholders, including employees, local Financial and several non-financial aspects in this report and in communities, non-governmental organisations our 2016 suite of reports are independently assured. The report (NGOs), customers and government. of the external auditor on our financial statements is on page 112, while the report of the external assurer on specific non-financial indicators is on pages 131 to 133. Available in print and online as a pdf ANNUAL FINANCIAL STATEMENTS Reporting framework The audited annual financial statements present · International Financial Reporting Standards (IFRS) statutory and regulatory information required by the · South African Companies Act 71 2008, as amended company’s stock exchange listing. · Listings Requirements of the JSE. Assurance The report of the external auditor on our financial statements is on page 112. Available online as a pdf Reporting framework ORE RESERVES AND MINERAL · JSE Listings Requirements RESOURCES REPORT · SAMREC’s guidelines and definitions (2007 edition, as In accordance with the Listings Requirements of amended July 2009) JSE Limited, Amplats prepared its Mineral Resource and Ore Reserve Statements for all its operations with Assurance reference to SAMREC’s guidelines and definitions (2007 edition, as amended July 2009). Competent In compliance with the three-year external review and audit schedule: persons have been appointed to work on, and assume · Snowden Mining Industry Consultants conducted a detailed responsibility for, the mineral resource and ore numerical audit in 2016 of the data gathering, data reserve statements for all operations and projects, transformation and reporting related to Mineral Resources as required. and Ore Reserves for Union Mine · Optiro Mining Consultants conducted an assessment of the remedial actions put in place as a consequence of the findings of the 2015 numerical audit findings at Mogalakwena Mine. Available online as a pdf Anglo American Platinum Limited Integrated Report 2016 1 OUR BUSINESS: OUR APPROACH TO INTEGRATED REPORTING OUR APPROACH TO REPORTING continued This integrated report is one of our primary communications with stakeholders. While it is prepared mainly for providers of capital and shareholders, financial information is balanced with commentary on our most material sustainability issues for a holistic view of the company. This report covers the 12 months to 31 December 2016 and follows a similar report for the year to 31 December 2015. REPORTING PRINCIPLES AND APPROACH Our integrated report is guided by the framework of the International Integrated Reporting Council (IIRC), published in December 2013. Our disclosure considers the guiding principles of this framework: STRATEGIC CONNECTIVITY FOCUS AND OF INFORMATION RELIABILITY FUTURE This report provides ORIENTATION AND COMPLETENESS a holistic view of the CONSISTENCY AND Insight on how our strategy company – including COMPARABILITY influences our ability Our chief executive officer financial, operational provides assurance that Year-on-year comparisons to create value in the ACCOUNTABILITY and non-financial demonstrate progress towards short, medium and this report includes all aspects. our strategic long term. Our leaders are accountable our material priorities in goals. for the company’s actions, and a balanced way, and the custodians of our governance without material error. For more on strategic focus and framework. The leadership section future orientation (page 70) details our governance see pages 16 to 23 structures and the key issues For more on reliability and completeness see below they dealt with in 2016. See our King III application register on www.angloamericanplatinum.com/kingthree/register For corporate and compliance information, please see administration on page 145. For more on accountability Other sources of information see pages 76 to 81 Additional information, including detailed disclosure on our sustainability performance in our supplementary report. www.angloamericanplatinum.com/investors/annual-reporting/2016 REPORT BOUNDARY · Implicit and explicit messages conveyed by strike action and other labour This report includes disclosure on all entities in our consolidated financial relations issues statements, but excludes non-financial data on our joint ventures. Rustenburg · Relevant legislation and regulation, and our commitments operations are included until 31 October 2016. · Media coverage and market reports on the company, the platinum sector and the industry For completeness, we also consider threats, opportunities and outcomes · Our values, policies, strategies, systems, goals and targets emanating from other entities or stakeholders with a significant effect on our · Significant risks that could affect our success ability to create value. · Views expressed by stakeholders through direct interviews by an external ASSURANCE party. Targeted participating stakeholders included investors, media and Financial and several non-financial aspects in this report and in our 2016 suite market analysts, NGO leaders and customers. of reports are independently assured. The report of the external auditor on our The prioritisation of our material issues was reviewed and confirmed first by financial statements is on page 112, while the report of the external assurer on the executive committee and then by the board. specific non-financial indicators is on page 131. Our business model (page 10) illustrates how Amplats considers the capitals REPORT CONTENT – financial, human and intellectual, natural, manufactured and social – Our material issues are defined as those with the greatest real and potential articulated by the IIRC in creating value. impact