Anglo American Working for Sustainable Development

Anglo American plc Report to Society 2003

COVER STORY Skorpion Zinc, in the south-western corner of Namibia, lies within the Succulent Karoo biome, the only arid to semi-arid region listed FINANCIAL in the world’s top 25 biodiversity hotspots. The mine and refinery are located on the ANGLO eastern edge of the Sperrgebiet or ‘forbidden zone’ that has prohibited access HIGHLIGHTS since 1908 when the first diamonds were FOR THE YEAR ENDED 31 DECEMBER 2003 discovered on the coast near Luderitz. Because of these restrictions on access, AMERICAN Sound financial performance based on transparent, ethical �� the area has remained virtually untouched behaviour is a cornerstone of sustainable development. It enables � for the past 100 years. The environmental the creation of jobs and the contribution to societal aspirations scientists at Skorpion Zinc have ensured through payments to governments, suppliers, employees and that as much as possible of this incredible returns to investors. � �� biodiversity seed bank and the habitats of the WORKING FOR many endemic vertebrates and invertebrates • Group turnover and attributable share of turnover of joint �� have been preserved for future generations. ventures and associates increased by 22% to $24,909 million In particular, this is achieved through • Headline earnings decreased by 4% to $1,694 million �� careful project development and restrictions • Capital expenditure by subsidiaries amounted to $3,025 million �� on off-road driving. SUSTAINABLE • $555 million was provided for in company taxes, excluding deferred tax for subsidiaries, joint ventures and associates. ANGLO AMERICAN PLC �� 20 Carlton House Terrace London SW1Y 5AN PROFITABILITY AND FINANCIAL FOUNDATION United Kingdom DEVELOPMENT Headline earnings per share were $1.20, 4% lower than in the prior year. Strong performances by many of the Group’s businesses Telephone: +44 (0)20 7698 8888 were offset by the significant impact on the Group results of the �� Fax: +44 (0)20 7698 8500 stronger South African rand, which appreciated some 28% against �� Registered number 3564138 the US dollar compared with the prior year average rate. Despite �� the weakening of the dollar, headline earnings reached $1,694 �� www.angloamerican.co.uk million (2002: $1,759 million) resulting from an outstanding performance by De Beers and strong contributions from Anglo Base Metals, Anglo Industrial Minerals and Anglo Paper and Packaging. Lower earnings were recorded by Anglo Platinum, AngloGold, Anglo �� Coal and Anglo Ferrous Metals and Industries, due in the main to �� the impact of the firming of the South African rand against the US dollar. The robust underlying performance reflects the Group’s �� geographical and product diversity, and the successful integration �� of acquisitions and projects. Profit for the year was $1,592 million �� compared with $1,563 million in the prior year. �� Acquisitions of subsidiaries amounted to $1,469 million. The principal acquisitions included an increase in the Group’s shareholding in Kumba to 66.6%. The Group has also increased �� its interests in Anglo Platinum and AngloGold. Purchases of tangible fixed assets amounted to $3,025 million, an increase �� of $886 million from 2002. The major components of expansion were in Anglo Platinum and Anglo Paper and Packaging. � 125 60 �� 50 100 RETURNS TO SHAREHOLDERS * Restated for the adoption of the UK’s Financial The total dividend for 2003 amounted to 54 cents per ordinary Reporting Standard 19. 40 75 share, up 6% on the previous year. 30 The financial data are derived from the audited Anglo American plc 50 20 Annual Report and Accounts for the year ended 31 December 2003, �� REPORT TO SOCIETY 2003 and are aggregated from Anglo American plc subsidiaries (together 25 �� 10 MESSAGE FROM OUR CHIEF EXECUTIVE 02 with joint ventures and other interests) using the accounting and consolidation principles of Anglo American plc. SHE data are �� 0 0 reported on the basis of managed operations only. Data on �� OUR APPROACH TO SUSTAINABLE DEVELOPMENT 04 �� business principles and human resources reflect managed �� companies only unless otherwise specified. For further details WORKPLACE 08 ENVIRONMENT 22 �� SOCIETY 38 ECONOMIC CONTRIBUTION 52 see pages 5 and 56. �� For more information on our financial data, refer to our website �� http://www.angloamerican.co.uk or to the 2003 Annual Report. 4000 5000 �� CONTRIBUTION TO WEALTH CREATION 3200 4000 In the maps of operations on pages 6 and 7, we provide a view � of our contribution to wealth creation in the major regions of �� 2400 3000 �� the world. OPEN 1600 2000 FLAP 800 1000

0 0 Anglo American plc Report to Society 2003

0 0 A SNAPSHOT OF OUR COMMITMENT  Target achieved X Target not achieved TO IMPROVE  Ongoing, work needed

OUR GOALS FOR 2003 2003 PERFORMANCE 2004 AND FUTURE TARGETS WORKPLACE GOVERNANCE, ETHICS AND • Certificated ISO 14001 systems at all managed operations by end 2004  63% of operations ISO 14001 certificated • ISO 14001 certification complete in 2004, new acquisitions within BUSINESS PERFORMANCE • Increase formal certification of health and safety management systems  More than 50% of operations have third party safety and two years (page 9) • Increase SHE/SD reporting by divisions and business units health certification • 75% third party health and safety systems certification within • Progress with five-year verification plan for key performance indicators  SHE/SD public reports produced by many operations (see page 64) two years  Verification programme extended to targets for community engagement plans SAFETY • Eliminate all work-related fatalities X 44 fatal injuries (47 in 2002) FIFR reduced 10% to 0.018 • Eliminate all work-related fatalities (page 11) • Reduce LTIFR by 26% to 0.64  LTIFR reduced by 26% to 0.64, in line with target • Reduce LTIFR by 27% to 0.45 (or 0.73 including all restricted • Audit the implementation of Safety Golden Rules at all operations  Safety Golden Rules implemented and audited work cases) • Ultimately eliminate all work-related injuries OCCUPATIONAL HEALTH • Implement and audit Occupational Health Management guidelines  Implementation and auditing of Occupational Health Management • Ultimately eliminate occupational disease and health impairment (page 15) at managed operations guidelines: 80% compliance in self-assessment, half of operations due to workplace health hazards independently audited • Complete auditing of Occupational Health Management Guidelines  The incidence of occupational disease reported for the first time HUMAN RESOURCES • Increase participation in performance management systems  49% of employees in managed companies participated in personal • Further increase in staff receiving performance and (page 16) • Progress towards the South African government’s employment equity target of development reviews (44% in 2002) development reviews 40% of historically disadvantaged South Africans in management by end 2007  South African managed operations now have 35% HDSA in • Further progress on employment equity targets • Improve communications with employees management positions • Repeat communication survey in Q4 2004 with specific focus areas  Managers briefed on communication survey results, improvement • Roll out electronic Group information portal programmes agreed ENVIRONMENT • • ENERGY AND CO EMISSIONS Explore possibilities for energy savings and reductions in CO2 emissions  Energy saving and reduction in CO2 emissions offset by portfolio changes Continue to improve energy efficiency and reduce CO2 emissions 2 • • (page 24) Implement data systems to record renewable energy used  Anglo Platinum publicly reporting energy consumption per unit Determine and report CO2 emissions from acid consuming • Improve baseline for methane emissions in South African coal mines of production processes such as copper heap leaching • X Data available on CO2 emissions from biomass use Refine data systems to complete renewable energy aggregation  Renewable energy figures still to be addressed • Establish a baseline for greenhouse gas emissions and  Progress on measurement of methane emissions in South African spontaneous combustion in South African coal mines coal mines • • AIR QUALITY Reduce SO2 emissions at Anglo Platinum’s Waterval Smelter to less than  Total SO2 emissions reduced by 48,489 tonnes (15%), due in part 6% reduction in SO2 emissions from processes targeted for 2004 • (page 27) 20 tonnes per day by end 2004 to the disposal of Bindura Nickel Corporation in Zimbabwe Anglo Platinum’s Waterval Smelter to achieve SO2 emissions of SO emissions at Anglo Platinum’s Waterval Smelter down 24% <20 tonnes per day by end 2004  2 • on 2002 emissions Develop data on SO2 emissions from fossil fuel use WATER USE • Set water use targets per unit of production  Operational management strategies and targets adopted to increase • Derive water usage per unit of production for our major products (page 30) • Improve systems for measuring and recording use of recycled water recycling and reduce fresh water consumption BIODIVERSITY • Develop criteria for characterising the ecological importance of  Biodiversity action plans in place at 35% of managed operations • Biodiversity action plans in place at all significant sites (page 32) company-managed land  ICMM members agreed a ban on mining in existing World by end 2004 • Report on implementation of biodiversity action plans Heritage sites • Ongoing participation in the IUCN/ICMM dialogue and • Further develop biodiversity strategy in conjunction with  Support provided for international conservation and other key partnerships ICMM/IUCN initiative regeneration initiatives LAND USE • Review and quantify closure liabilities for all managed operations  Closure liabilities total $652 million, based on approved and costed • Review and manage closure liabilities for all managed operations (page 37) closure plans  Financial provision, consistent with national legislation, is in place SOCIETY CORPORATE CITIZENSHIP • Continue to build partnership models for tackling social issues  Partnerships delivering results • Adopt specific policies on resettlement, security and human rights (page 39) • Promote employee volunteering as an adjunct to community engagement  Local employee volunteering schemes in place • Support mentoring and volunteer schemes • Develop policies on security, human rights and resettlement  Business principles now available in 24 languages; increasingly included • Develop detailed guidelines on human rights • Realise objectives of South Africa’s Mining Charter in training and contracts • Further progress towards realising objectives of South Africa’s  Policy on resettlement drafted Mining Charter Procurement of R3.6 billion ($477 million) of goods and services from  Cover photograph by Michele Kilbourn Louw black empowerment companies Other photography by Elaine Banister, Geoff Brown (Planet KB), OUR LOCAL COMMUNITIES • Community engagement plans in place at over 90% of  Community engagement plans in place at 88% of significant operations • 100% of current significant operations to have community Gerry Coetzee, Philip Desmet, Philip Mostert, Mike Pawley, (pages 39-44) significant operations  Socio-Economic Assessment Toolbox (SEAT) piloted and launched engagement plans Graeme Robinson and Anglo American employees • Review and roll out of Rapid Socio-Economic Assessment methodology to group companies • Training in use of SEAT methodology, 20 assessments conducted • Establish community of practice on social issues Published by Anglo American plc HIV/AIDS • Provide antiretroviral therapy at all southern African operations  Revised Group HIV/AIDS policy • Substantial increase in the uptake of voluntary counselling Designed and produced by Creativity (page 45) • Report on uptake of voluntary counselling and testing  Performance metrics agreed for tracking HIV/AIDS impact on operations and testing Printed by Ultra Digital • Develop metrics for tracking HIV/AIDS impact on operations  Antiretroviral therapy provided to 1,048 employees • Substantial increase in enrolment of HIV positive employees in • Establish partnerships for communities HIV/AIDS programmes Partnership to extend initiative to communities launched, pilot wellness programmes  The paper used in this report is totally chlorine-free, made from sites identified • Extend partnerships with governments, NGOs and donor agencies to address HIV/AIDS in communities associated with our operations wood fibre sourced from fully sustainable forests, and 90% of the water used during the manufacturing process is recycled A SNAPSHOT OF OUR COMMITMENT  Target achieved X Target not achieved TO IMPROVE  Ongoing, work needed

OUR GOALS FOR 2003 2003 PERFORMANCE 2004 AND FUTURE TARGETS WORKPLACE GOVERNANCE, ETHICS AND • Certificated ISO 14001 systems at all managed operations by end 2004  63% of operations ISO 14001 certificated • ISO 14001 certification complete in 2004, new acquisitions within BUSINESS PERFORMANCE • Increase formal certification of health and safety management systems  More than 50% of operations have third party safety and two years (page 9) • Increase SHE/SD reporting by divisions and business units health certification • 75% third party health and safety systems certification within • Progress with five-year verification plan for key performance indicators  SHE/SD public reports produced by many operations (see page 64) two years  Verification programme extended to targets for community engagement plans SAFETY • Eliminate all work-related fatalities X 44 fatal injuries (47 in 2002) FIFR reduced 10% to 0.018 • Eliminate all work-related fatalities (page 11) • Reduce LTIFR by 26% to 0.64  LTIFR reduced by 26% to 0.64, in line with target • Reduce LTIFR by 27% to 0.45 (or 0.73 including all restricted • Audit the implementation of Safety Golden Rules at all operations  Safety Golden Rules implemented and audited work cases) • Ultimately eliminate all work-related injuries OCCUPATIONAL HEALTH • Implement and audit Occupational Health Management guidelines  Implementation and auditing of Occupational Health Management • Ultimately eliminate occupational disease and health impairment (page 15) at managed operations guidelines: 80% compliance in self-assessment, half of operations due to workplace health hazards independently audited • Complete auditing of Occupational Health Management Guidelines  The incidence of occupational disease reported for the first time HUMAN RESOURCES • Increase participation in performance management systems  49% of employees in managed companies participated in personal • Further increase in staff receiving performance and (page 16) • Progress towards the South African government’s employment equity target of development reviews (44% in 2002) development reviews 40% of historically disadvantaged South Africans in management by end 2007  South African managed operations now have 35% HDSA in • Further progress on employment equity targets • Improve communications with employees management positions • Repeat communication survey in Q4 2004 with specific focus areas  Managers briefed on communication survey results, improvement • Roll out electronic Group information portal programmes agreed ENVIRONMENT • • ENERGY AND CO EMISSIONS Explore possibilities for energy savings and reductions in CO2 emissions  Energy saving and reduction in CO2 emissions offset by portfolio changes Continue to improve energy efficiency and reduce CO2 emissions 2 • • (page 24) Implement data systems to record renewable energy used  Anglo Platinum publicly reporting energy consumption per unit Determine and report CO2 emissions from acid consuming • Improve baseline for methane emissions in South African coal mines of production processes such as copper heap leaching • X Data available on CO2 emissions from biomass use Refine data systems to complete renewable energy aggregation  Renewable energy figures still to be addressed • Establish a baseline for greenhouse gas emissions and  Progress on measurement of methane emissions in South African spontaneous combustion in South African coal mines coal mines • • AIR QUALITY Reduce SO2 emissions at Anglo Platinum’s Waterval Smelter to less than  Total SO2 emissions reduced by 48,489 tonnes (15%), due in part 6% reduction in SO2 emissions from processes targeted for 2004 • (page 27) 20 tonnes per day by end 2004 to the disposal of Bindura Nickel Corporation in Zimbabwe Anglo Platinum’s Waterval Smelter to achieve SO2 emissions of SO emissions at Anglo Platinum’s Waterval Smelter down 24% <20 tonnes per day by end 2004  2 • on 2002 emissions Develop data on SO2 emissions from fossil fuel use WATER USE • Set water use targets per unit of production  Operational management strategies and targets adopted to increase • Derive water usage per unit of production for our major products (page 30) • Improve systems for measuring and recording use of recycled water recycling and reduce fresh water consumption BIODIVERSITY • Develop criteria for characterising the ecological importance of  Biodiversity action plans in place at 35% of managed operations • Biodiversity action plans in place at all significant sites (page 32) company-managed land  ICMM members agreed a ban on mining in existing World by end 2004 • Report on implementation of biodiversity action plans Heritage sites • Ongoing participation in the IUCN/ICMM dialogue and • Further develop biodiversity strategy in conjunction with  Support provided for international conservation and other key partnerships ICMM/IUCN initiative regeneration initiatives LAND USE • Review and quantify closure liabilities for all managed operations  Closure liabilities total $652 million, based on approved and costed • Review and manage closure liabilities for all managed operations (page 37) closure plans  Financial provision, consistent with national legislation, is in place SOCIETY CORPORATE CITIZENSHIP • Continue to build partnership models for tackling social issues  Partnerships delivering results • Adopt specific policies on resettlement, security and human rights (page 39) • Promote employee volunteering as an adjunct to community engagement  Local employee volunteering schemes in place • Support mentoring and volunteer schemes • Develop policies on security, human rights and resettlement  Business principles now available in 24 languages; increasingly included • Develop detailed guidelines on human rights • Realise objectives of South Africa’s Mining Charter in training and contracts • Further progress towards realising objectives of South Africa’s  Policy on resettlement drafted Mining Charter Procurement of R3.6 billion ($477 million) of goods and services from  Cover photograph by Michele Kilbourn Louw black empowerment companies Other photography by Elaine Banister, Geoff Brown (Planet KB), OUR LOCAL COMMUNITIES • Community engagement plans in place at over 90% of  Community engagement plans in place at 88% of significant operations • 100% of current significant operations to have community Gerry Coetzee, Philip Desmet, Philip Mostert, Mike Pawley, (pages 39-44) significant operations  Socio-Economic Assessment Toolbox (SEAT) piloted and launched engagement plans Graeme Robinson and Anglo American employees • Review and roll out of Rapid Socio-Economic Assessment methodology to group companies • Training in use of SEAT methodology, 20 assessments conducted • Establish community of practice on social issues Published by Anglo American plc HIV/AIDS • Provide antiretroviral therapy at all southern African operations  Revised Group HIV/AIDS policy • Substantial increase in the uptake of voluntary counselling Designed and produced by Creativity (page 45) • Report on uptake of voluntary counselling and testing  Performance metrics agreed for tracking HIV/AIDS impact on operations and testing Printed by Ultra Digital • Develop metrics for tracking HIV/AIDS impact on operations  Antiretroviral therapy provided to 1,048 employees • Substantial increase in enrolment of HIV positive employees in • Establish partnerships for communities HIV/AIDS programmes Partnership to extend initiative to communities launched, pilot wellness programmes  The paper used in this report is totally chlorine-free, made from sites identified • Extend partnerships with governments, NGOs and donor agencies to address HIV/AIDS in communities associated with our operations wood fibre sourced from fully sustainable forests, and 90% of the water used during the manufacturing process is recycled ANGLO AMERICAN BUILDING OUR NATURAL, HUMAN AND SOCIETAL CAPITAL

FOR FURTHER INFORMATION, PLEASE CONTACT Anglo American plc CONTENTS 20 Carlton House Terrace London SW1Y 5AN Financial highlights Inside front cover SOCIETY 38 United Kingdom Performance overview Inside front cover Building societal capital 39 Message from our chief executive 02 Small business initiatives 40 Telephone: +44 (0)20 7698 8888 Our approach to sustainable development 04 Empowerment through enterprise 41 Fax: +44 (0)20 7698 8500 Scope of this report 05 Community engagement 42 A global business – maps of operations 06 Indigenous peoples 43 Edward Bickham Resettlement 44 Executive Vice President: WORKPLACE 08 HIV/AIDS 45 External Affairs Governance, ethics and business performance 09 Corporate social investment 48 [email protected] Safety 11 Human rights and ethics 51 The South African Mining Charter 14 Michael Spicer Occupational health 15 ECONOMIC CONTRIBUTION 52 Executive Vice President: Human resources 16 Corporate Affairs Building our people 20 ADDITIONAL INFORMATION 56 [email protected] Basis of reporting 56 ENVIRONMENT 22 Independent assurance 57 John Groom Environmental overview 23 Data for managed companies 58 Senior Vice President: Energy consumption and GHG emissions 24 Glossary 62 Safety, Health and Environment Air quality 27 [email protected] Clean energy from coal 28 Water use and discharge 30 Karin Ireton Biodiversity 32 Group Manager: Product stewardship and innovation 34 Sustainable Development Waste management 36 [email protected] Stewardship of land 37

Anglo American plc Report to Society 2003 Introduction 01 MESSAGE FROM OUR CHIEF EXECUTIVE

ince 1999, we have been actively The acquisition trail has taken us into a host recognition of our efforts. We are committed refocusing Anglo American as of new countries such as China, Mexico, to transparency and reporting and have used Sa global leader. We have a long eastern Europe and Russia. Anglo American the Global Reporting Initiative as a guideline established record of striving to produce is now a focused natural resources group, in the formulation of this report. lasting benefits for the communities where stronger because of its geographic and we work and of corporate philanthropy. business diversity. MILESTONES We are determined to build on this ethos in At the end of 2002, we acquired the addressing the changing expectations of our OUR PERFORMANCE Disputada copper assets in Chile and have stakeholders and in entrenching sustainable This report highlights our performance made excellent progress in integrating development principles into the way we do against key indicators and areas of ongoing them into the Group. During 2003, we business through the policies that we adopt, focus. The statistics and case studies reflect also acquired a controlling stake in Kumba the pursuit of best practice, accountability enormous effort, some of which show Resources, thereby realising a long-term and leadership. excellent results and others which highlight strategic aim of establishing a presence where we must continue to improve. I am in the iron ore market. The $454 million Our business strategy is to achieve world- disappointed by our failure to reduce fatal Skorpion Zinc mine and refinery in Namibia class performance across all our businesses incidents significantly. We view every death were opened in 2003 and we made based on growth through acquisitions, as an avoidable tragedy and examine each significant acquisitions in Europe, the developing new operations, innovation and fatal incident in depth to ensure that lessons Czech Republic, China, South Africa and efficiency and through leveraging our core are learned. Eliminating fatalities remains Mexico. Our project pipeline is currently competencies. Sustainable development an absolute priority that we are tackling $6 billion, with a broad geographic and principles are central to achieving our through programmes such as visible, felt commodity spread. business strategy and challenge us to leadership, zero tolerance towards unsafe working practices and target zero for fatal TAKING A LEAD • improve the management of our injuries (OTTO) and behaviour-based safety During the past 18 months, we have environmental and social risks, thereby initiatives. Progress has been made in been actively involved in the Extractive securing continued access to natural improving our injury figures. Our lost-time Industries Transparency Initiative (EITI), resources and protecting our licence injury frequency rate (LTIFR) reduced from which we hope will build accountability to operate 0.87 in 2002 to 0.64 in 2003. Challenging and transparency around mineral revenues. targets for further reductions remain in place. Once again we are reporting regional flows • create social partnerships to tackle of corporate payments to governments and problems like HIV/AIDS We are committed to engage in the other stakeholders to illustrate the economic sustainable development debate at value of our operations. Over the past year, • improve efficiencies and minimise international, regional and national levels, we have continued to work with leading waste and pollution which amount to and are doing so increasingly with the business organisations, governments and unproductive resource use International Council on Mining and Metals NGOs, as well as directly as a company, • attract, develop and retain talented staff, (ICMM) and a wide range of other industry on a range of core issues including climate stimulate innovation and share knowledge associations. In addition, our business change, biodiversity, water management and across our business units units are firmly engaged with their local community development. environments and communities. I am well • ensure that our values and practices aware that we are not yet in a position to A major challenge for the extractive sector reflect international norms, community and present aggregate Group targets for the key is to ensure that we work in harmony with societal expectations, and environmental indicators. There is a clear local communities and that our operations awareness at site level, and I am confident are acknowledged as good neighbours. • create value where we operate. that our technology strategy will help identify This requires regular engagement with local longer-term Group goals within two years. people and a commitment to maximising the This approach will assist us in reducing the social and economic contribution which we cost of capital and operational management In 2003, Anglo American was included make during the lifetime of our operations and position us as a business partner in the Dow Jones Sustainability Index for so that they contribute to sustainable of choice. the first time. We are delighted with this development. Almost all of our significant

02 Anglo American plc Report to Society 2003 Introduction IN CONJUNCTION WITH GOVERNMENTS AND OTHERS, WE MUST BUILD A SHARED VISION OF THE FUTURE AND WORK IN PARTNERSHIP TOWARDS IT

operations now have a community In 2002, we decided to make available commit considerable time and expertise to engagement plan in place. We have also antiretroviral therapy to those of our working with loveLife (an NGO working to developed a socio-economic assessment workforce presenting with AIDS. With an ﬁght AIDS) and other partners to help build toolbox. This is a major investment in estimated 33,000 HIV positive employees, capacity in public sector primary health building skills at a site level to ensure the challenge of funding and providing care clinics. dialogue with key stakeholders, to forge treatment is signiﬁcant. I am now even more partnerships, to develop local business and convinced it was the right decision. During The HIV/AIDS challenge is enormous. training initiatives, and to manage social 2003, 1,048 employees were prescribed In tackling it, like so many other sustainable investment projects more effectively. I antiretroviral therapy and 94% of them development challenges, the most important believe we have taken a leadership position are back at normal work. Many of these thing is to make a start. In conjunction with in this area. employees would have been dead today governments and others, we must build without access to treatment. Their families a shared vision of the future and work Central to both our business strategy and would have been deprived of a parent and in partnership towards it. our approach to sustainable development is breadwinner. We would have lost skills and a focus on people. We are actively working loyalty that have taken years to develop. I hope you will find this report of interest. It to attract and retain the best staff through is only a snapshot of a diverse and dynamic skills development and training as well as an We have enrolled in wellness programmes group and further information is available innovative talent management programme. some 3,300 HIV positive employees who on our website. I am conscious of the risk In addition, in 2003, we launched an know that effective treatment will be of information overload and would welcome anonymous whistle-blowing service, available when they progress to AIDS. We your guidance on issues about which you speakup, to provide employees with a are beginning to break the silence and to would like to hear more. The reader reply means of reporting unethical or inappropriate make progress in confronting the epidemic. card can be used for this purpose, as can the business practices. enquiry facility on www.angloamerican.co.uk. PARTNERSHIPS FOR CHANGE Our people are working at many different In October 2003, we announced a major levels to give effect to our sustainable new community HIV/AIDS partnership, development commitments and to ensure which will accelerate the provision of the thinking is fully integrated into the comprehensive HIV/AIDS services in South way we do business. The World Summit African government clinics. Over and above Tony Trahar on Sustainable Development highlighted the funding assistance, our operations will 30 March 2004 the need for public private partnerships to reduce poverty and tackle the global sustainable development challenges. We have a number of collaborative programmes to address these issues. In particular, we are extending our HIV/AIDS programme beyond our employees into the community through strategic partnerships.

Right: Tony Trahar presenting the Anglo American Group ﬁnancial results from London through video and audio conferencing to employees worldwide

Anglo American plc Report to Society 2003 Introduction 03 OUR APPROACH TO SUSTAINABLE DEVELOPMENT

the Group and at community, national and international levels. To aid readers in finding specific material, it is divided into a number of key sections: Workplace, Environment, Society and Economic Contribution. However, the growing integration of these approaches will be apparent, as all the initiatives outlined have multiple impacts and benefits. A number of special features detail our approach to strategic challenges.

We are members of the ICMM, the World Business Council for Sustainable Development, the International Business Leaders Forum, the World Coal Institute and a variety of other business associations. We work through these organisations as well as within the Group to make progress on sustainable development challenges. One of the most powerful developments in this regard over the past two years has been the development of strong partnerships between ourselves, NGOs, governments and industry partners to tackle various challenges.

After publishing our 2002 Report to Society Towards Sustainable Development, we lthough as a company we have a We are linking these, where possible, with embarked on extensive engagement with long track-record, our individual the focus areas that emerged from the stakeholders in London and Johannesburg operations are not of themselves World Summit on Sustainable Development: to improve our reporting and to align it A with their expectations of transparency sustainable. Our commitment to sustainable poverty alleviation, water, energy, health, development is therefore to use our agriculture (land use) and biodiversity. and accountability. Our hope is that the revenues, expertise and business skill to participants in the feedback sessions and the many others who submitted unsolicited protect and build the natural, human and We recognise that neither the manmade nor feedback will see in this 2003 report a societal capital through the natural environment is unchanging and more user-friendly document, one which that our operations are catalysts for further communicates material aspects of our • being an efﬁcient, ethical and value- change, with both positive and negative past performance and which sets out more creating business effects. Our goal is to maximise the positive clearly our view of strategic sustainable contributions we can make, alongside development challenges. Hopefully, it will • creating meaningful employment in safe, governments and society, towards building promote further engagement and partnership healthy environments a more sustainable future and to reduce building. the negative impacts. It is an exciting and • reducing our environmental footprint and challenging journey. contributing to biodiversity management Above: Anglo American employees with This report, which was prepared using nine-month-old HIV positive Noma at the • innovation, technology and process the GRI 2002 guidelines, is part of presentation of a cheque to the Lambano improvement our commitment to transparency and AIDS Sanctuary. The money was raised accountability (see our website for the GRI by Johannesburg staff through an inter- • contributing to building more adaptable index). Our report discusses some of the divisional challenge, and was matched by societies. many initiatives that are taking place within the Johannesburg corporate ofﬁce

04 Anglo American plc Report to Society 2003 Introduction SCOPE OF THIS REPORT

nglo American plc, with its Anglo Paper and Packaging’s Syktyvkar in our website provide environmental and subsidiaries, joint ventures and Russia and Anglo Industrial Minerals’ Mavike production data for individual operations, A associates, is a global leader in the in Spain. Performance at Anglo Platinum’s thereby allowing a comparison of mining and natural resource sectors. It has Polokwane smelter is included from May performance over time at the operational significant and focused interests in gold, 2003. Hippo Valley in Zimbabwe is now level. Where possible, we have normalised platinum, diamonds, coal, base metals, categorised as a managed operation and the data per unit of production. This year’s ferrous metals and industries, industrial its performance is reported as part of data continue to be more comprehensive and minerals and paper and packaging, as Anglo Industries. Amzim Gold and Iron Duke robust and provide an increasingly accurate well as financial and technical strength. operations in Zimbabwe were sold and their reflection of our performance. The Group is geographically diverse, with performance was not reported in 2003. operations in Africa, Europe, North and Bindura Nickel Corporation in Zimbabwe Throughout this report, values are expressed South America, Australia and Asia. was sold during the year and is included in in US dollars using the currency sign $. Anglo Base Metals’ statistics for the first Where local currency values are used, The report highlights our contribution to half of 2003. the approximate US dollar value is given, sustainable development by our managed based on average values for 2003. The operations, focusing on our performance in The impacts of the changes in our portfolio following average exchange rates for the a number of key areas: the safety, health on our performance figures are explained period are applied: SA Rand 7.55, Sterling and development of our people; throughout the report. The data tables in 0.61, Euro 0.88, Australian dollar 1.53 and environmental management; the building this report and additional information on Russian rouble 30.66. of a sound, ethical, business which adds economic value; and our community development and investment programmes. We also include the economic contributions and corporate social investment for our independently managed subsidiaries AngloGold and Tongaat-Hulett. Our independently managed associate, De Beers, is excluded from the scope of this report.

Maps of our Group interests are on pages 6 and 7. A full list of managed operations is in the data tables commencing on page 58.

Reporting for the year 2003 is inﬂuenced by a number of changes to the Group resulting from acquisitions, disposals, new production capacity and the movement of some assets into the managed category. We report this year for the ﬁrst time on a full year’s operation at Anglo Base Metals’ Los Bronces, Chagres and El Soldado in Chile, Anglo Coal Australia’s Moura colliery,

Right: The view to the east from Anglo Base Metals’ Las Tórtolas tailings impoundment in Chile, some 40 kilometres north of Santiago, looking across the semi-arid scrub common to the central part of the country to the vineyards in the Peldehue valley and the mountains in the distance

Anglo American plc Report to Society 2003 Introduction 05 A GLOBAL BUSINESS LOCAL CHALLENGES

OPERATIONS IN NORTH AND SOUTH AMERICA OPERATIONS IN AFRICA

MANAGED INDEPENDENTLY MANAGED INDEPENDENTLY MANAGED MANAGED

Value added* $850 million $280 million Value added* $2,150 million $1,150 million Employees 8,000 3,000 Employees 77,000 58,000 Payments to $135 million $44 million Payments to $426 million $221 million governments‡ governments‡

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06 Anglo American plc Report to Society 2003 Introduction OPERATIONS IN EUROPE AND THE MIDDLE EAST OPERATIONS IN AUSTRALIA AND ASIA

MANAGED INDEPENDENTLY MANAGED INDEPENDENTLY MANAGED MANAGED

Value added* $2,740 million 0 Value added* $510 million $110 million Employees 43,000 0 Employees 4,000 <250 Payments to $673 million 0 Payments to $236 million $8 million governments‡ governments‡

* Value added includes turnover from subsidiaries and other ﬁnancial income, minus payments to suppliers for materials and services as well as indirect taxes and royalties. ‡ Payments to governments include corporate tax, taxes on dividends, withholding taxes, transfer and stamp duties, import and export duties, VAT and sales taxes, turnover taxes, royalties, employee taxes and social security contributions, environmental taxes and permit costs, other taxes and payments. A questionnaire survey was used to gather this information. The ﬁgures are likely to be underestimates and should be seen as indicative only.

Anglo American plc Report to Society 2003 Introduction 07 CHINA’S CENTURY WO ANGLORK AMERICAN’SPL SALESA OFC PLATINUM,E DIAMONDS AND GOLD INTO CHINA’S BOOMING ECONOMY ARE CURRENTLY VALUED AT AROUND $1 BILLION

808 AngloAnglo American American plc plcReport Report to Societyto Society 2003 2003 WorkplaceGeographic diversity GOVERNANCE, ETHICS AND BUSINESS PERFORMANCE During 2003, our governance structures and a further 14% are from the remainder were adjusted to ensure full compliance with of KwaZulu-Natal. BOARD OF DIRECTORS the United Kingdom’s Higgs’ Review of the Sir Mark Moody-Stuart* – Chairman role of non-executive directors. Excluding Mondi Europe’s Neusiedler Syktyvkar has A J Trahar – Chief Executive the chairman, half the Board now comprises been acknowledged as the company with the D J Challen* independent non-executive directors. A system best reputation in the Russian forest products B E Davison of performance assessment of the Board, its industry by Expert, a leading business Dr C E Fay* sub-committees, directors and the chairman magazine in the Russian Federation. Expert R M Godsell* has been instituted. took into consideration ethics in relation A W Lea to external and internal business partners, G Lindahl* Anglo American’s key sustainable development management efficiency, products, services, R J Margetts* risks are managed through both the Turnbull quality and the reputation of top managers. Dr M S B Marques* risk management system and annual letters W A Nairn of assurance flowing from Good Citizenship: NEWCOMERS N F Oppenheimer* Our Business Principles and the Group’s During 2003, we made two important new F T M Phaswana* safety, health and environment policy. appointments. Dr Maria Silvia Bastos Marques Sir David Scholey* joined Anglo American as a non-executive Professor K A L M Van Miert* To ensure that performance matches the director – the first woman appointed to our *Non-executive standards set out in the Business Principles, Board. Dr Marques has an impressive record SAFETY, HEALTH AND ENVIRONMENT programmes were instituted in 2003 to of financial transformation in companies and COMMITTEE build capacity in relation to interactions the city of Rio de Janeiro. She served as the Dr C E Fay – Chairman with communities, to improve employee President of the Brazilian Steel Institute from B E Davison communication, to facilitate whistle-blowing, 2001 to 2002 and was Chief Executive R M Godsell to improve staff development and to ensure of Companhia Siderurgica Naçional (CSN), G Lindahl compliance on anti-trust issues. Latin America’s largest integrated steel Dr M S B Marques (from 2004) company, from 1999 to 2002. She holds Sir Mark Moody-Stuart Briefing on the terms of the Business a PhD in economics. Principles is routinely given across managed W A Nairn operations when inducting staff. Most Sir David Scholey Lazarus Zim has been appointed deputy chief A J Trahar divisions mandate compliance as a condition executive of Anglo American Corporation of of doing business with all regular and South Africa and serves as a director of a significant suppliers. During 2003, 857 number of Group companies. He is driving employees were dismissed for breaches of transformation in the South African operations South African general election. R6 million the Business Principles standards (offences in accordance with the requirements of the ($0.8 million) will be donated to political involving violence, dishonesty, harassment, South African Mining Charter (see page 14) parties contesting the election, in recognition discrimination and disregard for safety) and other policies. He was most recently of the critical juncture in the country’s and 10 supplier contracts were terminated chief executive of a leading South African democratic process. A Board sub-committee because of such breaches. The main focus company and developed significant business headed by our chairman, Sir Mark Moody- is, however, to promote higher standards opportunities throughout Africa. Stuart, recommended allocations. Our among staff and suppliers. independently managed subsidiaries and POLITICAL DONATIONS Kumba will also be making contributions We are seeking to build local recruitment We have a policy of not making donations based on advice from their respective boards targets into our supply chain practices. At to political parties or organisations, but of directors. Further information is available in Richards Bay in South Africa, for example, an exception has been made for the 2004 our Annual Report and on our website. Mondi has engaged a consultancy, with the approval of the surrounding community, labour unions and contractor organisations, to run an off-site recruitment centre to provide unskilled and semi-skilled labour to sub-contractors. As a result of this process, 64% of the labour force of 1,708 on site are local to the Richards Bay/Empangeni region

Left: Mechanised (trackless) underground mining at Anglo Platinum Rustenburg Section’s Bleskop shaft

Right: Dr Maria Silvia Bastos Marques was appointed to the Board as a non-executive director

Far right: Lazarus Zim was appointed deputy chief executive of Anglo American Corporation of South Africa

Anglo American plc Annual Review 2003 Anglo AmericanAnglo plcAmerican Report plcto SocietyReport to2003 Society 2003 Workplace 099 SYSTEMS APPROACHES of generating appropriate management . Sound corporate governance and systematic protocols, reduced development time and approaches to business practice are driving accelerated progress to full certification. In the adoption of management systems and December 2003, Loma de Níquel achieved standards in our business units. simultaneous certification to ISO 9001, 14001 and OHSAS 18001. Anglo Platinum has created a corporate governance compliance committee to EXTRACTIVE INDUSTRIES oversee the implementation of the Business TRANSPARENCY INITIATIVE Principles, policies and procedures and Anglo American was actively engaged in the ensure legal compliance. The committee discussions surrounding the development is supported by an electronic business of the Extractive Industries Transparency management system (EBMS) which has, for Initiative (EITI). We are committed to the example, replaced traditional safety, health, EITI as a means of increasing stakeholder environment and quality (SHEQ) confidence, reducing opportunities for procedure manuals and aims to simplify embezzlement and stimulating debate around adherence to the wide range of business how revenues are allocated most effectively standards and procedures. in resource-dependent economies.

At Base Metals’ Codemin and Catalão WHISTLE BLOWING operations in Brazil, comprehensive systems In 2003, a confidential, independently development started with ISO 9001 quality managed, whistle-blowing facility known as certification in 1996, followed by ISO 14001 speakup was launched to enable employees environmental management in 2001 and to report violations of the Business OHSAS 18001 safety and health certification Principles or any legal or ethical concerns. in 2003. Employees have the right to remain anonymous and will not be prejudiced for Loma de Níquel in Venezuela adopted an raising concerns. Most southern African integrated risk assessment approach. Key operations are already participating in this safety, health, environment and quality risks facility. It will be rolled out to the Group were prioritised and management strategies in 2004. developed. This simplified the process

Above: One of the speakup posters publicising the whistle-blowing facility to report violations of the Business Principles or any legal or ethical concerns

Left: From left, Sir Mark Moody-Stuart in discussion with Pat Lowery, former general manager of Loma de Níquel, general manager Walter de Simoni and Anglo American’s head of group human resources and business development, Russell King, at Loma de Níquel

10 Anglo American plc Report to Society 2003 Workplace SAFETY

SAFETY REMAINS We have instituted programmes for falling objects (10%), transportation (8%) leadership training, active dissemination and falls of ground (8%) are also covered by A KEY FOCUS of information on safety risk management, our Safety Golden Rules, which we expect the setting of clear high standards and to help drive further improvement. OF OUR RISK encouraging safer workplace behaviour. MANAGEMENT The benefits are apparent, and we remain In 2003, we included some restricted work committed to the programmes to bring our cases (RWCs) in our calculations of LTIFR. EFFORTS ACROSS ultimate goal of zero injuries much closer. In 2004, we see the culmination of this THE GROUP We still, however, have a long way to go. process. We have set ourselves the challenging LTIFR target of 0.45 (or 0.73, TARGETING ZERO FATAL INCIDENTS in which all RWCs will be included). The It is with great regret that we report the graph on page 12 shows how safety key deaths of 27 employees and 17 contractors performance indicators have been trending in our managed operations. While this downwards, even when estimated RWCs represents three fewer fatalities than 2002 are included, and the new target represents and a 10% reduction in the fatal injury a further 27% reduction. The change now frequency rate (FIFR) from 0.020 to 0.018 brings us fully into line with leading practice, per 200,000 manhours, we are determined and the result is much in line with our peers to make OTTO (zero tolerance towards in the industry. unsafe working practices and target zero for fatal injuries) a reality. The hazards SPREADING BEST PRACTICE in our operations that were most often Our Safety Golden Rules have been implicated in fatal incidents in 2003 were implemented and audited, in some cases moving machinery (27%), falls of ground by third parties. This is one cornerstone (27%) and transport (14%). This is the of our OTTO safety campaign, and is first time that these numbers have not complemented by leadership and employee been dominated by underground falls of awareness training and empowerment ground. However, we remain convinced to work safely. Compliance with these that all fatal incidents are preventable safety standards is generally high, with and continue to strive to elimate all work- some specific exemptions where additional related fatalities. time and investment are necessary for full implementation. These exemptions were Our lost-time injury frequency rate (LTIFR) reduced in 2003, and by the end of 2004 has been reduced by a further 26% from all operations will be fully compliant. Safety 0.87 to 0.64. The trend in reducing injuries bulletins on the management of major remains encouraging and we have achieved hazards are distributed across the Group a 58% improvement over the past three to disseminate learning points and highlight years. The main hazards relating to lost-time best practice. Safety training for all levels injuries, namely materials handling (19%), of staff remains a priority. falling (15%), moving machinery (13%),

LOST-TIME INJURY WORK RELATED FREQUENCY RATE* FATAL INJURIES* PER 200,000 MANHOURS 2002 2003 2002 2003 Platinum 26 24 1.24 0.74 Coal 5 7 0.46 0.55 Industrial Minerals 3 1 1.19 0.85 Base Metals 6 6 0.52 0.78 Ferrous Metals 2 1 0.54 0.65 Industries 1 2 0.67 0.34 Exploration 0 0 1.09 0.49 Paper and Packaging‡ 4 2 0.67 0.47 Technical and other 0 1 0.41 0.45 Total 47 44 0.87 0.64 * Employees and contractors in managed companies ‡ Previously Forest Products

Anglo American plc Report to Society 2003 Workplace 11 MANAGEMENT SYSTEMS Plans are in place to increase such Sound management systems certification to 75% within two RECOGNISING SAFE Kingdom won the gold award, contribute to safe work practices. years. PERFORMANCE and Anglo Coal South Africa’s Our operations are increasingly The chief executive’s safety Central Workshops the silver. being certificated to the ISRS, Despite this focus, some competition entered its third NOSA or OHSAS 18001 systems failures have occurred. year in 2003, with every Some of our operations international management system Legal actions taken against division being encouraged to continue to prove that OTTO standards for health and safety. Group companies for breaches submit nominations for the is achievable. The most Certification increased by 18% of safety legislation resulted in large and small business notable of these are Namakwa in 2003 to a total of 53% (by fines of $235,236. categories. The winners of the Sands’ Mineral Separation turnover) of Group companies. 2002 large business category Plant and Mondipak Brakpan. awards were Anglo Coal South Both operations have more Africa’s New Denmark colliery than 200 employees and have (gold), Anglo Base Metals’ operated for the past three �� Codemin in Brazil (silver) and years without a lost-time �� Anglo Industrial Minerals’ Tarmac injury. Of our 212 reporting Western in the United Kingdom entities with more than 100 �� (bronze). In the small business employees, 33 (16%) have category, Mondi Europe’s Long operated for at least the past �� Crendon plant in the United� �year� without a lost-time injury. ��

��

Right: Ben Magara, general manager of Anglo Coal South Africa’s New Denmark colliery, holds aloft the crystal floating trophy won by the mine for the best performance in the Group’s annual safety competition

12 Anglo American plc Report to Society 2003 Workplace A BUSINESS CASE FOR Anglo American chairman IMPROVED SAFETY Sir Mark Moody-Stuart notes: Anglo Coal South Africa’s New “I have been using New Denmark colliery has achieved Denmark as an example of a remarkable turnaround how team effort, creativity in its safety record, at the and discipline, which deliver same time achieving marked results in safety, health and improvements in coal quality, environmental performance, also productivity, customer relations, deliver results in other areas.” organisational culture and return on capital employed through EMPLOYEE-DRIVEN a focused strategic process SAFETY PROGRAMME involving mine management, In October 2001, Zimbabwe employees and trade unions. Alloys launched its behaviour- based safety (BBS) campaign This revival has been personified to improve employee in two mine mascots, SMARTY interaction with co-workers (Safety Must Always Relate and management, encourage To Yourself) and Tsoseletso ownership of the safety (a Sotho word meaning programme by employees and revival). Buy-in from the trade give them substantial control unions and all employees over the system. has been fundamental to this comprehensive turnaround. The company’s SHE manager, Neil Malila, explains: “BBS process started from the basics the BBS programme has been Performance highlights in 2003 does not try to replace and involved a non-threatening effective in other areas such as include ISO 14001 certification, existing controls, engineering review of our activities. All quality improvement and better a 71% reduction in lost-time conditions, workplace realities our employees were re-trained environmental management, injuries since 2001, a 60% or compliance with rules and through observation and peer resulting in the achievement productivity improvement with regulations. What it has done education to perform their of ISO 9001 and 14001 a corresponding improvement in for us is to place ownership tasks in a safe way. To date, certification in 2003. coal quality, and return on capital of safety into the hands of 125 safety coaches have been employed up from 24.7% in the 800 individuals who are appointed and it is these people BOART LONGYEAR SAFETY 2001 to 43.2% in 2003. part of this business. The BBS who have guided our re-training, ACHIEVEMENTS hazard identification and job • Springs (South Africa) was observations.” awarded its fourth NOSCAR and achieved 3 million Safety performance improved disabling injury-free man-hours from an LTIFR of 0.35 in 2002 to 0.24 in 2003. The intensive • North America’s participation of employees in Environmental Drilling Division has worked over 2.3 million hours injury-free

• Wuxi (China) and Roodepoort (South Africa) sites worked over 1 million hours injury- Above: From left, Sir Mark free. Chinese authorities Moody-Stuart, Tony Trahar and lauded Wuxi for its attitude to Tony Redman (chief executive safety, its business principles of Anglo Coal) observe an and for treating employees as underground operating procedure valued resources being explained by Peterson Zimu, an operator in the • Zimbabwe operations received longwall mining section at New the gold trophy from the Denmark colliery country’s National Social Security Authority. Left: One of the safety coaches (right) guiding re-training, hazard identification and job observations at Zimbabwe Alloys to ensure a safe working environment

Anglo American plc Report to Society 2003 Workplace 13 THE SOUTH AFRICAN MINING CHARTER

he Mining Charter is a framework for HUMAN RESOURCES OWNERSHIP AND JOINT VENTURES transformation of the South African Building the skills and personal capacity Empowerment transactions to the value of Tmining industry. Developed by of staff is a key element of our business R3.2 billion ($424 million) were concluded government in consultation with the industry strategy and our approach to sustainable in 2003 – cumulatively over R15 billion and accepted by Cabinet in November development. Programmes range from ($2 billion) since 1994. 2003, it is an adjunct to the Minerals and literacy and numeracy to technical skills Petroleum Resources Development Act, development, bursary programmes and a In addition, the R40 million ($5.3 million) which will come into force in May 2004. Group-wide talent management programme. Anglo Khula Mining Fund was launched in 2003 to promote the entry of black Since its launch, public and media attention MIGRANT LABOUR economic empowerment participants into on the Charter has been related to the Our business principles promote workplace junior mining companies. Three ventures requirement that 26% of attributable equity and human rights, and seek to have already been assisted. New tax production in South Africa’s mining assets eliminate unfair discrimination of any kind. incentives have been announced to increase should be in the hands of historically The issue of foreign and local migrancy equity ownership through employee share highlights a key challenge in tackling disadvantaged South Africans (defined schemes for lower income earners. These sustainable development. The rights of in law as African, Asian, coloured men, must be capped and include minimum existing foreign migrant workers and the and women). holding periods. benefits they bring to southern Africa must be balanced against the need to grow jobs The objectives of the Charter are to ensure in South Africa and distribute benefits into BENEFICIATION more equitable access to, and benefits from, host communities. A long-term challenge Product stewardship, innovation and adding the mineral resources of the country for for regional governments is to reduce the economic value through beneficiation of historically disadvantaged South Africans. dependency of neighbouring countries on our primary products are areas of ongoing Benefits will accrue through ownership, jobs income from migrant miners. investigation, which will be reported in more and skills development. The Charter further detail in future reports. aims to improve the welfare of miners, COMMUNITY DEVELOPMENT mining communities and those in labour- All our operations undertake significant providing areas and to promote value-adding community development initiatives beneficiation. The Minister of Minerals and particularly addressing education and health Energy believes that all elements of the challenges. The Anglo American Chairman’s Charter are equally important and that Fund manages extensive initiatives in it will not succeed without all of them partnership with operations and other being addressed. organisations in and around neighbouring communities. One of the most significant of these is the loveLife initiative to build The scorecard against which the socio- community awareness and ability to address economic progress will be evaluated has HIV/AIDS and increase the capacity of nine elements, including reporting. We government clinics to deliver comprehensive address these in terms of our Business HIV/AIDS services and the early roll out of Principles and our Group-wide corporate antiretroviral therapy. sustainable development commitments. They are reported throughout this report, HOUSING AND LIVING CONDITIONS which forms the primary vehicle for public Employees’ housing conditions and living- reporting on all sustainable development and out allowances are negotiated as part of socio-economic issues for the Group. a collective bargaining exercise between Reporting is therefore not included in trade unions and industry representatives. this section. It is, however, company policy to encourage home ownership. Programmes are under way to upgrade existing hostels to meet EMPLOYMENT EQUITY current norms as not all workers elect to buy With 35% of our management grouping in their own homes. South African operations currently drawn from the designated groups as defined PROCUREMENT in law, we are on track at our managed We have promoted economic empowerment operations to meet the 2007 target of 40%. through procurement policies for over a However, the challenge to attract sufficient decade. Group procurement expenditure in women into all areas of the business is black economic empowerment companies in significant and the success rate varies 2003 was R3.1 billion ($411 million) – between divisions and disciplines. Plans to R3.6 billion ($477 million) including achieve targets and statistics are filed each AngloGold – and cumulatively R10 billion year with the Department of Labour. ($1.3 billion) since inception.

14 Anglo American plc Report to Society 2003 Workplace OCCUPATIONAL HEALTH

Reducing and managing health from exposures when early risks are critical functions at warning signs are detected HEARING CONSERVATION 97 dB(A) and 112 dB(A) our operations. Auditing for to allow for treatment, as is AND NOISE ALLEVIATION to 84 dB(A), which is below compliance with our occupational the case with occupational PROGRAMMES the level necessitating the health management guidelines, asthma and tuberculosis, or Anglo Coal is implementing wearing of protective which were developed in 2002, preventing further deterioration, programmes to reduce noise equipment. The fitting of progressed well in 2003 and as is the case with NIHL and levels at all its operations. acoustic panels has quietened will serve as a key component lung diseases. Limiting the This includes silencing current the bobcat from 107 dB(A) to of third party health and safety progression of the disease equipment and working with 85 dB(A). certification across the Group. depends on prevention or timely manufacturers to improve intervention. Early signs of design. Goedehoop and Greenside focused on Noise-induced hearing loss exposure effects are therefore Greenside collieries set underground tractors, (NIHL) remains the priority crucial to managing occupational up hearing conservation conveyor belt drives and the risk for most divisions. health risks. committees in 2003 to introduction of electric drills. Pneumoconiosis, stress, asthma, determine areas of highest risk The engine compartment of tuberculosis, gas and fume Despite efforts to reduce and to establish projects to the underground tractor was exposure, hand/arm vibration exposure, 1,257 new cases reduce the noise levels through screened and sealed. Noise syndrome (HAVS), malaria and of occupational disease were equipment modification. levels were reduced from other tropical diseases and recorded in 2003. Of these, 96 dB(A) to 91 dB(A). excessive exposure to the sun 1,117 cases were NIHL, 55 HAVS, At Goedehoop, particular focus are other occupational health and 68 occupational lung areas were the underground This drive to improve the risks that have been identified. disease. The new cases of auxiliary fans, bobcat machines health and safety of employees NIHL reported can be attributed and diesel equipment used has reduced the number of During 2003, business units primarily to new legislation in at the coal disposal site. Fan employees exposed to noise conducted self-assessments South Africa. This reduced the noise levels were reduced from by about 10%. against the occupational threshold and required a baseline health management guidelines. audiogram, to be completed by The average audit score was November 2003, from which approximately 80%, and future hearing loss and therefore plans are in place to address compensation can be calculated. shortfalls. In addition, companies As a result, a large number of assessed their current employees were registered for performance against the United compensation and were classified Kingdom’s Health and Safety as new cases of NIHL. Executive occupational exposure limits (OELs). No material We are ensuring a consistent differences exist between these approach to the management OELs and our standards. of occupational health through certification to internationally PERFORMANCE OVERVIEW recognised standards. At the end Some two-thirds of our of 2003, half our operations had employees are potentially independent third party certification exposed to heavy industry for their occupational health occupational health hazards such management systems. Our target as NIHL, HAVS and occupational for the next two years is 75% lung diseases. Occupational of operations. health management requires identification of hazards, ERGONOMICS quantification and elimination of The Mondi Forests division of the associated risks, followed Anglo Paper and Packaging is by measurement and control. involved in a major review of Ideally, hazards are engineered the ergonomics of forestry work. out and any residual problems A second study will look at the are managed. Monitoring nutritional demands of this work identifies early effects of and is aimed at assessing the exposure before these lead to possible additional demands clinical disease. Residual hazard imposed by HIV infection. The management includes the work has already commenced wearing of personal protective and will continue into 2004. The Above: From left, surface hygiene officer, check the noise equipment and minimising the results will be used to optimise electrician Casper Oosthuizen, level from a muffled auxiliary fan numbers of people involved. working methods, reduce the engineering assistant David prior to installation underground The management options then physical demands and improve Polyinyana and Liska Cronje, at Anglo Coal South Africa’s include the removal of people productivity and health. ventilation and occupational Goedehoop colliery

Anglo American plc Report to Society 2003 Workplace 15 ��

� �� HUMAN ��

�� RESOURCES ��

We rely on the skills, enthusiasm MAJOR EMPLOYER �� and commitment of our people to Anglo American is a major � �� meet the needs of our business international employer providing �� and to address appropriately the permanent work for 132,000 � �� issues raised by our stakeholders. employees and 33,000 �� contractors in our managed � � �� We therefore “aim to attract and operations. We provide work �� retain the services of the most opportunities in over 55 countries �� appropriately skilled individuals. around the world and across a We are committed to treating wide range of businesses. These �� employees at all levels with opportunities encompass the �� respect and consideration, to full spectrum of educational and � investing in their development industrial development, from � � and to ensuring that their semi-skilled positions to complex careers are not constrained by technical, professional and discrimination or other arbitrary managerial posts. barriers to advancement. We will seek to maintain a regular two- way flow of information with �� employees to maximise their �� identification with and ability to �� contribute to our business”. Below: The Group’s third �� Advanced Management (Good Citizenship: Our Business Programme was attended Principles) by 29 delegates from eight countries

16 Anglo American plc Report to Society 2003 Workplace TALENT MANAGEMENT A number of initiatives have DEVELOPING EXECUTIVE been launched to ensure that we TALENT ﬁnd and retain highly talented Themba Masondo, mine people capable of delivering at manager at Anglo Coal South the highest levels. Over the past Africa’s Bank colliery, joined two years we have been reﬁning the company in 1991 and a Group-wide talent review since then has been following and management system for a fast-track structured the current and future strategic development programme that leaders of our company. prepared him for the senior positions he has held in the SECURING SKILLS FOR Group. He has participated in THE FUTURE management and executive We understand that talent development programmes management is a long-term at Stellenbosch University business, so we look to a and the Gordon Institute of number of means of securing Business in Johannesburg. and developing relevant skills An Anglo Coal panel, chaired to support our industry in the by divisional chief executive future. Our investment includes Tony Redman, focuses on high broadly-based support for post potential employees with an school education through the emphasis on strengthening award of bursaries and our the talent and diversity in the apprentice, graduate and other Group. Three of Anglo Coal’s trainee programmes (see South African collieries have pages 20-21). black managers.

EXPANDING THE TALENT POOL One of our strategies is to embrace more fully the talents of all sectors of the population, �� wherever we work. Female �� employees in our managed � operations comprise 12.7% �� of the total (up from 10.4% �� in 2001), and currently 9.6% �� of our managers are women. �� The challenge of increasing the �� gender diversity of our proﬁle �� is real as we operate in sectors �� that often require heavy, �� physical labour. �� In our South African managed �� operations we have increased � � the representation, in �� management positions, of �� historically disadvantaged ��

�� South Africans from 21% �� in 2002 to 35% in 2003. ��

Anglo American plc Report to Society 2003 Workplace 17 INVESTMENTS IN OUR STAFF

IMPROVING COMMUNICATION In a group as geographically diverse as Anglo American, communication with our employees is a key challenge. Although on average our managerial ratios are reasonably high (one supervisor or manager to every 12 employees), we need to supplement individual brieﬁngs with broader communication initiatives. Our 2002 employee communications survey indicated that one of the areas that requires attention is ensuring that our vision and strategy are more fully communicated to all employees. As a result, Tony Trahar has Right: Following the strategy made a number of presentations meeting of the Board in to our ofﬁces around the world, November 2003, Tony Trahar and divisional directors and addressed employees at 57 managers are tasked with locations around the world, placing greater emphasis on providing an update on the communication within and Group’s strategic plan and between our businesses. progress made towards the achievement of targets to date In the fourth quarter of 2004 we will repeat our communication Below: Moira Phillips, VP survey with attention on measuring human resources, welcomes progress made in increasing the 35 delegates from 18 Group understanding of our strategy, companies in 15 countries to openness to a diversity of the 2003 Anglo American views, knowledge-sharing and European Information Council the climate for enterprise. held in London

ANGLO AMERICAN’S In order to incorporate this EUROPEAN INFORMATION diverse group and build COUNCIL understanding of the Group’s Over recent years our strategy, representatives European presence has grown from these operations meet signiﬁcantly. We currently annually at the Anglo American have over 19,000 employees European Information Council. working in the paper, packaging, Simultaneous translation aggregates, concrete and facilities encourage fuller mining-related industries in discussions with senior the European Union and a executives from the operating further 8,000 in the states divisions about the performance that will join the EU in 2004. of the Group and future plans.

OUR EMPLOYEES IN EU OUR EMPLOYEES IN EU COUNTRIES ACCESSION STATES Austria 2,237 Czech Republic 1,276 Belgium 648 Hungary 885 Denmark 59 Poland 2,953 Finland 8 Slovenia 82 France 1,791 Slovakia 2,527 Germany 1,828 Greece 58 Ireland 552 Italy 400 Luxembourg 16 Netherlands 126 Spain 556 Sweden 624 United Kingdom 10,576

18 Anglo American plc Report to Society 2003 Workplace IMPROVING QUALITY OF ($0.3 million). Other investments LIFE AT SYKTYVKAR included a new building at Neusiedler Syktyvkar (NSY) an existing summer camp for pulp and paper mill is located children, a new ski centre and to the northeast of Moscow 180 apartments for employees. in the Ezhva municipality of Syktyvkar, the capital of the Some of the social facilities Komi Republic in Russia. The mill at NSY are available to all is a major investor in the social community members. When infrastructure of the district and the mill became a member of owns several social facilities the Group, only about 30 of including a dispensary, sports the 14,000 employees could and recreation centres and ﬁve speak English. Now hundreds dormitories. In addition, NSY of employees are attending has invested in housing for English lessons and will continue its employees. to do so in addition to other development programmes. Following the acquisition of The company has won an award Syktyvkar Forest Enterprises by as the best company in the Mondi in 2002, a medical centre forest products sector in Russia was constructed at a cost of (see page 23). 10 million Russian roubles

Above right: A group of employees at Neusiedler Syktyvkar attending English lessons

Below: Top female achiever in the Polokwane Smelter training programme, Phuti Constance Seopa, accepts her award from July Ndlovu, the smelter’s business manager

JOB CREATION AT • cleaning services for the POLOKWANE SMELTER smelter are provided by a In 2002, the project to develop locally-owned company that the Polokwane Platinum Smelter employs members of the in the Limpopo province of community South Africa commenced with • staff houses are maintained the recruitment of 160 young and serviced by small people from local communities. businesses in the area None of them had previous working experience. They all • local recruitment agencies underwent training in plant and have been used to find company-specific skills as employees and contractors well as more generic skills in chemistry, communication, • the contract for the laundry industrial science, mathematics, and change house has been finance and safety, and received awarded to a community joint certificates at the end of the venture year. Although not all the • tenders for personal protective trainees were subsequently equipment, security, tree offered employment at the planting, landscaping and smelter, their enhanced technical gardening will be granted to and business skills have local service providers. increased their marketability and potential to benefit the regional The smelter currently has 159 economy. employees, 80% of whom have been recruited from the local Over 3,000 contractors were community. employed during the construction phase of the smelter, which generated a number of direct and indirect employment opportunities in the region, many of which still exist today: • a local cafeteria continues to provide food for employees and contractors

Anglo American plc Report to Society 2003 Workplace 19 BUILDING OUR PEOPLE

raining and developing young South African graduates to geographically dispersed personnel to new equipment, our current and potential into the professional ranks to operations. In 2003, 16 students Anglo Coal Australia’s Callide Tworkforce are cornerstones cater for the company’s future from nine universities in Canada, mine introduced a training of our strategy. In addition to succession needs in mining- Chile, Finland, the Netherlands, simulator that allows for ensuring a pool of motivated, related and financial disciplines. Poland and the United Kingdom replication of the pit layout, skilled employees, building In 2003, there were 337 bursars were offered placements buildings, landscape and individual capabilities in the scheme, which focuses in Australia, Brazil, Chile, topography. It also enables contributes fundamentally to particularly on developing black Ireland, Namibia, Peru, Poland, analysis of each operator’s more sustainable societies. graduates. South Africa and Sweden. performance and specific aspects of safety, efficiency, Development programmes A global decline in talented SAFETY proficiency and the impacts of vary according to local needs school leavers choosing to Transport-related incidents are distances, loads and materials and priorities. They include study mining-related subjects among the most significant moved. Anglo Coal Australia adult basic education in South at universities prompted the risks for our employees. A has bought a transportable Africa, encouraging Brazilian Group to provide opportunities critical vulnerability in mining model that can be used at workers back to high school, for practical field experience operations is the mix of light its four open cut sites. The offering English lessons to in addition to its traditional and heavy vehicles. To improve programme will be closely Russian and Slovakian workers, sponsorship of selected the operational and technical tracked to evaluate the effects programmes for graduates and universities and mining schools skills of current operators of this innovative training on skilled artisans, and broadly- outside South Africa. This had and introduce inexperienced driver-related safety incidents. based safety training. The focus the dual benefit of allowing is on developing transferable students to see first-hand what skills. Throughout the Group, opportunities existed and to companies are investing in demonstrate their talents their employees and local communities as illustrated by the following examples. Above left: Participants in Tarmac’s graduate training scheme GRADUATES Tarmac’s graduate training Above right: Prince Molusi, an scheme develops participants Anglo Platinum bursar, conquered for their first management role all odds to achieve his dream through building leadership and of becoming an accountant. A team skills and focusing on the BComm graduate and currently delivery of a major strategic a project accountant at Anglo project. A greater focus on Platinum, he has commenced his management skills is helping to MBA studies at the University of attract more women and people the Witwatersrand from diverse ethnic backgrounds into this traditionally white Right: The training simulator at male-dominated industry. Anglo Coal Australia’s Callide mine is used to improve operator Anglo Platinum’s bursary skills and reduce transport- scheme feeds well-qualified related incidents

20 Anglo American plc Report to Society 2003 Workplace From 1998 to 2001, Mondi 15 years, Scaw has enrolled Forests experienced an 656 apprentices despite a unacceptable rate of fatal general decline in apprentice incidents with 19 employees and training. Qualified artisans contractors losing their lives. have a wide scope of career To entrench safety as a way opportunities and can progress of life rather than mere as senior technicians or move compliance with the law, a to production and general behavioural safety programme supervisory roles. called Phepha (a Zulu word meaning safety) was introduced ADULT EDUCATION in February 2002. The In 2003, 32 students programme, which is based on successfully completed Mondi extensive research into various Kraft’s adult basic education incident trends, has resulted and training (ABET) programme, in a significant reduction in the which includes entrepreneurship number of unsafe incidents. It and financial management uses an animated computer- as core subjects. Once the generated personality, Phepha, course has been successfully which characterises the completed, students are able to and ten employees are currently already achieved high school safety-conscious, ever-vigilant apply for the General Education enrolled in each. certificates and a further 61 employee who always wears the Diploma that enables them to are currently attending classes. correct protective clothing. start tertiary education. The In Brazil, a five-year Back to Forty-five students dropped out programme is registered with School programme introduced of the programme due to fatigue APPRENTICE SKILLS the South African Independent by Anglo Industrial Minerals’ and the significant demands of DEVELOPMENT Examination Board. Copebrás in 2000 is paying returning to school after many Scaw Metals is the only dividends in business and years’ absence. In Cubatão decentralised trade test centre Also in South Africa, a cost- personal development terms near São Paolo, 34 of the 64 in South Africa to conduct sharing partnership with the through higher qualifications, students have achieved their assessments in industrial Department of Education in greater self-confidence, high school certificates and a pattern-making. It has 10 of the the Esikhawini township near self-esteem and improved further 30 are currently enrolled. 12 indentured pattern-making Richards Bay extends the ABET interpersonal communications. Human resources staff at both apprentices in the country and programme to the community, The programme ranges operations provide mentoring is the first company in South which includes many Mondi from basic literacy through and encouragement as well Africa to offer pattern-making dependants. The Paper and elementary and high school. At as working with wives and for casting products as a career Recycling divisions of Mondi Catalão in Goiás state, 115 of families to build support for for women. Over the past also have ABET programmes the 211 enrolled students have the programme.

Above: From left, Michael Pakhati, Bernard Sibetha, Bheki Zulu, Alfred Mdladla and Gerion Khuzwayo of Mondi’s Merebank mill, with Hettie Willems, Mondi Kraft’s adult basic education and training teacher

Left: First-year millwright apprentices Sibusiso Dlamini (left), Khazamula Shuma and Mmalegodimo Mathole try out their newly-issued personal protective equipment as they prepare to start their first hand tools task in the Scaw Metals training centre in Germiston, South Africa

Anglo American plc Report to Society 2003 Workplace 21 CHINA’S CENTURY ENV ANGLOIR AMERICAN’SON SALESM OFE PLATINUM,NT DIAMONDS AND GOLD INTO CHINA’S BOOMING ECONOMY ARE CURRENTLY VALUED AT AROUND $1 BILLION

22 AngloAnglo American American plc Reportplc Report to Society to Society 2003 2003 EnvironmentGeographic diversity ENVIRONMENTAL OVERVIEW Energy, water and biodiversity continued BAPs against the guideline to give effect to ENVIRONMENTAL CERTIFICATION to be the focus of attention in our the Group’s biodiversity strategy prepared Certification of operations to ISO 14001 or environmental management efforts in 2003. in 2002. equivalent has increased year on year by Targeted action was undertaken within 10% to 61% (as a percentage of the framework of ISO 14001-compliant Our Platinum, Coal and Base Metals Group turnover) and we expect that management systems, which we have been divisions and Paper and Packaging’s South 93% of companies will be certificated implementing throughout the Group. In our African forestry operations report that the to ISO 14001 by the end of 2004. While 2002 report we listed a large number majority, if not all, of their business units the Group target is for all business units of energy, water and CO2 targets set by have BAPs in place. The few high-risk Group to be certificated, the difference is operating companies. In general, these were sites which do not yet have BAPs have attributed to recent acquisitions that are met or are in the process of being met. A plans to implement these by the end of progressing to certification and to small, similar range of business-specific targets has 2004. Newly acquired sites will implement non-material business units with no high again been set and these are summarised on them by end 2006. environmental risks. our website. Forest Stewardship Council (FSC) MONDI EUROPE ACHIEVEMENTS The diversity of our businesses and our certification effectively requires BAPs for all • The Russian Environmental Movement strategy of growth and acquisition pose Mondi forests in South Africa. The forests awarded Neusiedler’s Syktyvkar mill an real challenges for the meaningful in the Komi Republic in Russia, where we honorary diploma for the Environmental presentation of aggregated, Group level, hold logging rights or manage the forestry Protection of Russia in October 2003. key performance indicators. Our divisions operations, are also pursuing FSC The award is presented for outstanding are, therefore, increasingly focusing on certification. Our paper mills and packaging achievements in environmental resource consumption and emissions data plants do not usually require BAPs as they performance. Syktyvkar was also awarded per unit of production, as illustrated by are located primarily on industrial land. the World Wide Fund for Nature Panda the Anglo Platinum 2003 Sustainable Award for their initiation of the Forestry Development Report. INCIDENT REPORTING AND FINES Stewardship Council (FSC) certification As certification to ISO 14001 increases, process in forests in the Komi Republic. POLICY IMPLEMENTATION we are noting an increase in the reported Protection of biodiversity is an issue of number of minor environmental incidents • Frantschach Swiecie (Poland) was global concern and enjoyed special focus (Level 1). There have been no Level 3 awarded the prestigious annual Baltic Sea during 2003. A guideline for producing incidents (significant impact with extensive Water Award (see case study pg 31). biodiversity action plans (BAPs) was or long-term effects) reported since the developed and distributed after extensive inception of public reporting in 2000. Three consultation with divisional representatives, air quality incidents are reported on page 27. peer companies and the World Wide Fund for Group companies incurred fines totalling Nature (South Africa). Most business units $40,000 in 2003 ($90,466 in 2002). have assessed their systems and/or existing

Type of incident Brief description 2001 2002 2003 Level 1 Minor impact, short-term effect 1,642 4,000 6,660* Level 2 Moderate impact, medium-term effect 34 65‡ 125 Level 3 Signiﬁcant impact, extensive or long-term effect 0 0 0 * Anglo Platinum accounted for 45% of the total incidents due to improved reporting linked to the roll out of ISO 14001 ‡ Restated: changes due to incorrect inclusion of 5 incidents by Scaw

Left: The discharge water canal at Anglo Paper and Packaging’s Syktyvkar in Russia

Anglo American plc Annual Review 2003 Anglo AmericanAnglo plcAmerican Report toplc Society Report to2003 Society 2003 Environment 23 ENERGY CONSUMPTION AND GREENHOUSE GAS EMISSIONS

PERFORMANCE consumption at Anglo Platinum Portfolio changes at Anglo Coal only the absolute quantity of Total energy use (fossil fuel, as a result of the expansion Australia (Moura acquisition) energy used but also the burden processes and electricity) programme. and Anglo Base Metals (disposal associated with its primary amounted to 211 million GJ in of Konkola and acquisition of source. In the electrical energy 2003, 5% higher than in 2002. These increases have been offset El Soldado, Los Bronces and burden graph we illustrate how by decreases at Anglo Ferrous Chagres), account for most much energy was purchased The principal contributory factors Metals, where Highveld Steel and of the remaining changes in and whether it carries a high are the inclusion of Syktyvkar in Scaw Germiston have switched the use of energy. environmental burden, such Anglo Paper and Packaging for from the use of low caloriﬁc as fossil fuel-based energy, a full year’s operation as well producer gas to higher caloriﬁc In managing the impacts of or a lower burden through being as a 16% increase in energy gas from commercial sources. energy use we consider not based on a renewable source.

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� � 24 Anglo American plc Report to Society 2003 Environment � � � � Greenhouse gas (GHG) emissions Chagres that have replaced, in MANAGING CARBON RISKS Union including the accession totalled 29 million tonnes the divisional total, the carbon- Government regulation of GHG countries, and Canada) emissions is rapidly becoming amounted to 3.9 million tonnes of CO2 equivalent (CO2(e)). intensive power supplies used Of this, 13 million tonnes of by Konkola. a reality and this poses certain of CO2(e). In addition, emissions risks for us as our operations in Australia amounted to CO2(e) were from electricity purchased, 8 million tonnes were MEASUREMENT are signiﬁcant emitters of 3.4 million tonnes of CO2(e) and from fossil fuels, and 5 million During 2003, Anglo Coal South GHGs. These risks are managed in Russia to 1.6 million tonnes

tonnes were from processes. Africa completed a third-party through an internal carbon of CO2(e). Our exact financial This represents a 3% decrease sampling exercise to quantify working group that brings exposure arising from emissions together expertise on climate in the European Union will in CO2(e) emissions since emissions from underground 2002. Three million tonnes of collieries. The project will assist change and energy efficiency become clearer only after the and serves to disseminate best allocation of emission permits CO2(e) can be attributed to CO2 with the selection and installation practice across the Group. has been made later in 2004. from coal bed methane (CH4) of monitoring equipment to obtain emissions. real-time emissions data from the mine shafts. The carbon working group Our response to the challenge The changes in GHG emissions commissioned consultants of climate change has to date are due mainly to the changes Biomass constitutes an to survey our expected GHG focused on energy efficiency in energy use as a result of estimated 43% of total energy regulatory risks. The consultants and project-based emission production increases and used in our pulp mills. We treat estimated that in the period to reduction possibilities. portfolio changes. The reduction this energy source as GHG- 2010 there could be a negative in emissions at Anglo Base neutral in our reporting, in line impact on sales revenue, mainly ENERGY EFFICIENCY Metals reflects the use of power with the World Business Council as a result of lower coal sales Many of our operations are very from hydroelectric sources at for Sustainable Development’s to the European Union, offset energy-intensive and we believe Los Bronces, El Soldado and GHG reporting protocol. by the possibility of increased that considerable potential sales of platinum group metals efficiency gains exist. Anglo (PGMs) for use in fuel cells. American’s Technical Division has instituted an energy Based on a range of permit efficiency centre of excellence prices for greenhouse gas to provide guidance to emissions (measured in carbon operational management on the

dioxide equivalents, CO2(e), identification of cost-effective to enable comparison), the efficiency improvements and survey also concluded that to facilitate the sharing of best possible compliance costs practice. Energy efficiency per annum for our operations targets set by a number of in the period to 2012 would our operations for 2003 have amount to approximately provided an incentive for 1% of 2003 operating profit. management to pursue some �� Given likely permit prices, we of these opportunities. �� expect that actual compliance �� costs will be less than this. Representatives from all our �� Most of our operations are divisions attended an energy located in countries that will workshop in December and an �� not be imposing binding energy-efficiency pilot project �� emissions constraints in the is scheduled for completion �� period to 2012. by the middle of 2004. The Rocky Mountain Institute has

�� Our 2003 emissions of CO2 been commissioned to assist and CH4 (from processes, in the process of funding and �� fossil fuels and from purchased demonstrating cost-effective electricity) in countries that energy efﬁciencies and it will have agreed to implement � focus on a portion of the mine- emissions targets under the to-market value chain within

�� Kyoto Protocol (the European Anglo Platinum. ��

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�� Anglo American plc Report to Society 2003 Environment 25 � USING CDM PROJECTS TO ACHIEVE TURNING PROBLEMS INTO PROFITS SOLAR AND WIND ENERGY EMISSIONS REDUCTIONS Moura Mine, a joint venture managed Anglo Base Metals is investigating The Kyoto Protocol provides for a number by Anglo Coal, is the first operation the viability of solar and wind energy of ﬂexible mechanisms, including the Clean in Australia to establish a commercial generation for its operations. Project Development Mechanism (CDM), which seamgas business alongside its coal mining manager Mick Furman explains: “I have

can be used by businesses to commission operations. Moura coal is high in CH4 and selected the Namakwa Sands operation projects that will contribute to sustainable the seamgas operation has the potential at Brand se Baai on the South African west development in developing countries. to make overall greenhouse gas emissions coast as the pilot site as we have good A number of potential CDM projects are savings equivalent to 2.8 million tonnes of wind data for this site going back to the

being investigated across the Group. CO2 per annum and improve the safety of pre-feasibility days 12 years ago. Working future coal mining. with the Council for Scientific and Industrial • Codemin is proposing to reduce by about Research, we will develop a model to test 72,000 tonnes per year from the current Traditionally, methane was released to the the technical and financial viability for the

emissions of 94,000 tonnes of CO2(e) per atmosphere as a safety measure. However, generation of solar and/or wind energy to year through increasing energy efﬁciency concern over the loss of this potential supplement the use of fossil fuel-based in the calcining process and switching energy source, together with the effect electric power at Namakwa Sands. Then,

reductant from charcoal to woodchips that CH4 may have on the global climate, using global wind data, the model will be sourced from sustainably managed has initiated the collection of this gas run for all the Base Metals operations to plantations for commercial use. Gas is extracted via establish the viability of wind power at horizontal wells drilled up to 1,500 metres each of them.” • Richards Bay currently emits about into the seam and piped to the processing

1.9 million tonnes of CO2(e) per year, plant where the gas is dewatered, filtered, The next step in the study is to transform of which 60% is derived from biomass. compressed and dehydrated to Queensland the wind data at Brand se Baai for use by By a partial fuel switch from coal to State gas specifications. the wind turbine manufacturers, to size wood waste that is currently landﬁlled, the installation and provide the estimated

CO2(e) emissions could be reduced by Methane-related research was undertaken capital costs. The financial model will approximately 61,000 tonnes per year. between 1989 and 1994 at a cost of then be developed to compare the capital A$8 million ($5 million). The capital and operating costs of wind generated cost was an estimated A$37 million power with that supplied by the national ($24 million). Capture and sale of coal electricity supplier. The study will be bed methane began in 1996. Over the completed in mid-2004. next two years the operation will expand from the current 6,000 GJ per day to Besides the potential cost savings of using 18,000 GJ per day. wind power where grid power is expensive, wind energy reduces the burning of fossil fuels for conventional power generation. The carbon credits that will accrue to sustainable power generation will play an increasingly important role in our ability to secure environmental permits for our new mining operations.

Right: Jenny Reagan, seamgas manager at Anglo Coal Australia’s Moura mine, completes a daily inspection of the gas extraction plant with a colleague

26 Anglo American plc Report to Society 2003 Environment AIR QUALITY

Air quality is a high-risk issue at a number of 2003. While ramping up towards full day, a level that will result in community of sites across the Group. Ongoing research production at the R1.6 billion ($212 million) air quality which meets the World Health and improvement are our responses to a new converting plant, excessive SO2 Organisation’s standards. Ralph Havenstein, number of instances of public concern which emissions were caused by a break-down in chief executive of Anglo Platinum, says he were recorded by the media in 2003. the old acid plant. These contributed to high is conﬁdent that “the new technology ACP levels of air pollution over the neighbouring plant will be fully commissioned by the

Total recorded emissions of SO2 from town of Rustenburg. end of 2004” and that “SO2 emissions managed operations reduced by 15% in will have been reduced to completely 2003 to 282,123 tonnes. The reduction An emissions reduction schedule has since acceptable levels”. was due mainly to the disposal of Bindura been renegotiated with South Africa’s Nickel Corporation in Zimbabwe. With the Department of Minerals and Energy and AIR QUALITY IN WITBANK commitments currently in place, the group arrangements are in place for measuring Communities in the vicinity of the Witbank should achieve a further decrease of 6% the plant’s progress in meeting this. These coal mining district in South Africa often in 2004. SO2 emissions ﬁgures do not yet arrangements include: lodge complaints about air quality with include fossil fuel consumption, and this mining companies. As a result, Coaltech will be addressed in 2004. • continuous liaison with relevant provincial 2020, a collaborative South African research and local authorities programme between industry, government, MEREBANK MILL research institutions and labour, is

Anglo Paper and Packaging’s Mondi Paper • daily monitoring of ground-level SO2 developing a methodology to characterise is currently applying for approval from concentrations by an independent monitor, the air emissions for the industry and the authorities and discussing an agreement who compares them with international air quality in surrounding areas. Coaltech with the South Durban Community standards 2020, the Scientific Industrial Research Environmental Alliance (SDCEA) for a and Development Centre in Zimbabwe and project which includes a new multi- • provision for Anglo Platinum to take the United Nations Industrial Development fuel boiler, flue gas desulphurisation immediate remedial action if it contributes Organisation in Austria are drafting a on its existing coal fired boilers and significantly to concentrations in excess of proposal for a public private partnership to decommissioning of its heavy fuel oil boilers. specified limits address community issues. This framework

This project would bring down SO2 emissions has been supported by NEPAD, the African from the Merebank mill by 66% over the • regular communication with the development initiative, and will be used next two years. The waste that will be used Rustenburg community regarding progress to adapt the methodologies developed by in the multifuel boiler (bark, ash, sawdust of the ACP plant, including 24-hour Coaltech 2020 to address air quality issues and sludge) will be independently tested hotlines and frequent public meetings. in areas outside the industry’s responsibility. to ensure that there are no substances A viability assessment has commenced. present that would give rise to unacceptable The investment in the innovative new emissions. European standards will be used technology was committed by the Anglo OZONE-DEPLETING COMPOUNDS and emissions will be tested independently. Platinum board in 2000 following 10 years Very few ozone-depleting compounds The capital cost for the emissions reduction of research and development. The aim is remain in use across the Group and plans project will be R330 million ($44 million) to fix, into slag, matte or acid, 98% of are in place to phase out equipment, such on top of a R1.1 billion ($146 million) the sulphur contained in the process input as refrigerators and air conditioners, that expansion of the paper mill. materials and reduce emissions of SO2 into are reliant on these. No ozone-depleting the atmosphere to below 20 tonnes per compounds are used in processes. HIGHVELD STEEL Two complaints were received by Anglo Ferrous Metals’ Highveld Steel, one of which was from a government minister who reported excessive stack emissions to the Pollution Control department at the Department of Environmental Affairs and Tourism. The Chief Air Pollution Control Officer is reportedly satisfied with the company’s explanation. The other was a written complaint on the emissions from the Steelworks. This was received from a community leader from the Rustenburg area. The complaint has been comprehensively addressed in a letter from the Highveld chief executive. Highveld is examining the possibilities for further emissions abatement.

WATERVAL SMELTER EMISSIONS The Anglo Platinum Converting Project (ACP) plant at the Waterval smelter attracted the attention of the media during the course

Right: The Anglo Platinum Converting Project (ACP) plant at the Waterval smelter in Rustenburg, South Africa

Anglo American plc Report to Society 2003 Environment 27 CLEANER ENERGY FROM COAL

he need for cleaner, affordable PRODUCT STEWARDSHIP energy is a major global concern. Anglo Coal has recently joined the TGHG emissions from a world hungry International Energy Agency Clean Coal for energy to drive economic progress Centre, providing an opportunity to engage and social development are the focus of with industry stakeholders on coal utilisation both increasingly stringent environmental research. Through the World Coal Institute legislation and international efforts to ﬁnd (WCI), in which Anglo Coal has a leadership ways of reducing anthropogenic (man-induced) position, the coal industry has commenced GHG emissions. In addition, there is pressure engagement with policy makers. Among to reduce localised impacts on air quality, other issues, the WCI is looking to increase water and land. funding for research, development and deployment of clean coal technology. Anglo Coal and others in the coal industry The Carbon Sequestration and Leadership (producers, consumers, equipment suppliers) Forum (CSLF), launched in June 2003, is are working to ensure that coal meets future a 10-year project to facilitate international environmental standards while remaining an collaboration on separation, capture, economically viable source of energy. This is transportation and storage of CO2. The CSLF essential as large developing economies such has a membership of 15 countries including as China, India and South Africa continue to Australia, China, the European Commission, use relatively lower cost and abundant coal India, South Africa, the United Kingdom and resources as a primary source of energy. the United States. Anglo Coal participates in South Africa’s deliberations on the CSLF. Positioning coal as a cleaner energy source requires the application of clean coal technology over the coal life cycle (exploration, extraction, beneficiation, �� utilisation/conversion). This includes �� retrofit equipment that improves the performance of existing processes as well �� as new technology that offers significant �� performance and environmental advantages. �� Anglo Coal’s initiatives range from mitigating

CO2 in operational process activities to working with regional and international research and industry organisations. �� PROCESS ACTIVITIES �� Most notable of the initiatives is the �� methane gas collection at Moura colliery in Queensland, Australia (see case study �� on page 26). Similarly, other company sites with high methane concentrations are examining various mitigation options, including small-scale power generation from gas. �� Another initiative is improvement in the �� run-of-mine coal beneficiation process � to increase recovery of the previously �� discarded ultra-fine coal fraction at Anglo �� Coal South Africa’s Goedehoop, Kleinkopje and Greenside collieries. Source: Advanced Power Generation Technology Forum

28 Anglo American plc Report to Society 2003 Environment CLEAN COAL TECHNOLOGY

lean coal technology describes a Thermal efﬁciency on new pulverised coal CO2 CAPTURE

range of technology-based efforts combustion power generating plant could CO2 separation can be carried out by to reduce the environmental impacts increase to 45% and on a longer time-frame, chemical scrubbing of CO rich flue gas or C 2 in the coal extraction, utilisation and using ultra supercritical pulverised coal using membranes, metal-based sorbents and conversion processes for producing electrical combustion plant, to 50-55%. Advanced other separation technologies. However, energy. Coal is one of the most widely Integrated Gasification Combined Cycle research and development is required distributed and economically viable sources (IGCC) plant efficiency could increase to in to counter the significant reduction in of energy and continues to play a critical role excess of 50%. efficiency (or energy penalty) incurred in the in the economic transformation of many separation process. developing countries. NEAR-ZERO EMISSION PLANTS Conventional clean coal technology delivers Significant advances have already been CO STORAGE substantial reductions in SO , NO and 2 made in the combustion process, for 2 x Storage of CO is a comparatively lower-cost particulate emissions as well as increasing 2 example the implementation of flue gas activity. Sequestration options range from thermal efficiency. For zero or near-zero control technology, which has achieved specifically identified geological formations to emissions, the remaining environmentally substantial reductions in SO , NO and depleted oil and gas reservoirs and perhaps 2 x harmful gases such as CO will need to particulate emissions. The roadmap to 2 un-mineable coal seams. These geological be captured and stored permanently. This near-zero emissions highlights conventional formations provided natural storage for encompasses a wide range of technologies technologies that encompass short to in separation and storage. The United States crude oil, natural gas and brine for hundreds medium-term objectives and provide an Department of Energy and industry partners of millions of years. In some instances economic technology base for the long-term CO sequestration into depleting oil or gas have embarked on a 10-year, $1 billion 2 target of near-zero emissions. initiative known as FutureGen (see below) reservoirs or un-mineable coal seams could facilitate enhanced recovery of oil, gas or CONVENTIONAL CLEAN COAL to research, design and develop a coal-based coal bed methane. CO storage is already TECHNOLOGY zero emission plant. On completion, this 2 This refers to technology improvements in plant will use coal to generate electricity undertaken on a commercial scale, an power generation that deliver incremental and produce hydrogen, while eliminating example of which is the Sleipner gas field of Norway where Statoil sequesters the gains in net efficiencies and reduction in SO2, NOx and mercury, with capture and CO in an underground saline reservoir. emissions (see flow diagram on page 28). sequestration of CO2 emissions. 2

FUTUREGEN COAL-BASED ZERO EMISSIONS ELECTRICITY AND HYDROGEN PLANT

Electricity

Hydrogen Pipeline

CO2 Pipeline

Coal Gasiﬁcation-Based Power

Oil Pipeline Reﬁnery

Geological Enhanced Sequestration Oil Recovery Source: US Dept of Energy

Anglo American plcEnvironment Report to Society 2003 Environment 29 WATER USE AND DISCHARGE

Water availability, consumption USING GEOPHYSICS TO and contamination present key IDENTIFY POTENTIAL risks at sites throughout the SEEPAGE Group. In response, Anglo Geophysics is playing an American’s Technical Division important role in the effective has embarked on a programme management of seepage at of water reviews and audits Anglo Base Metals’ Las Tórtolas and the creation of water tailings impoundment in Chile. balances at specific sites to identify problem areas and Ore from the high-altitude mine provide solutions. This will at Los Bronces is piped to the also encourage meaningful Las Tórtolas site, some 40 km reductions in water usage per away, for processing. The metal unit of production, the most concentrates, copper and useful measure of efficiency molybdenum, are separated and given our frequent portfolio the residual material is deposited and production changes. in a tailings impoundment. A line of boreholes has been drilled Total water used for primary across the potential direction of activities for all reporting flow of groundwater to collect operations amounted to for recycling any seepage from 672 million m3 in 2003, the impoundment. an increase of 63%. This is due largely to the full year Due to the complex flow of reporting by Anglo Paper patterns, the well-field curtain and Packaging’s Syktyvkar in of 13 boreholes that had Russia. Improved reporting and previously been drilled provided in these areas to intercept A planned expansion of the an increased understanding variable interception of seepage potential seepage. plant, which would have of the boundaries of reporting water. Detailed geophysical required an increase in water led to a restatement in 2002 studies were carried out across Other anomalies have been supply of 1,000 m3 per day, of 5% at Frantschach Czech. the existing well-field location to identified that may indicate caused a rethink at Namakwa Anglo Industries’ Hippo Valley determine the most likely flow the presence of deep-seated Sands. Clarified sewage water in Zimbabwe was included for channels. This survey identified aquifers and these are being from the Vredenburg sewage the first time as a managed two potentially major flow paths assessed using drill-holes to works was identified as a operation and accounted for and the operation is now drilling investigate whether there potential alternative source of 27% of the Group’s water use. two large-diameter boreholes may be additional locations water for the smelter processes. where seepage could move This is strongly supported by �� from the tailings dam into the the local municipality and the �� surrounding aquifers. Department of Water Affairs and Forestry, and permission �� INNOVATION TO OVERCOME was granted for its use. While SUPPLY RISKS the project has been placed on �� The Namakwa Sands smelter, hold due to the postponement located on the arid west coast of the expansion, the benefits �� of South Africa, is operating associated with the future use �� within its water consumption of clarified sewage water, both permit of 547,000m3 per annum for Namakwa Sands and for the 3 �� (some 1,500m per day) and economic development of the is targeting a 6% reduction in region, have been recognised. water use in 2004. �� ´

�� Water-saving initiatives are continuously pursued throughout � the operation and daily water �� consumption information is circulated to senior management �� to maintain a constant focus Above: To ensure that any �� on the trends. Monthly water seepage of water from the Las �� use in excess of calculated Tórtolas tailings impoundment in �� permit limits is reported as a Chile is collected for recycling, �� Level 2 environmental incident a line of boreholes has been �� and investigated to prevent drilled across the potential ﬂow �� recurrence. direction ��

30 Anglo American plc Report to Society 2003 Environment ��

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� UPGRADING EFFLUENT to reduce both its overall water MANAGEMENT AT consumption and its pollution RICHARDS BAY MILL discharge to the Vistula River, Mondi will be spending which drains directly into the R195 million ($26 million) Baltic Sea. Swiecie, one of on an upgrade of the effluent the largest pulp and paper treatment facilities at its producers in Poland, doubled its Richards Bay mill to meet the production in the same period. European Union best available technology recommendations Frantschach Swiecie has and satisfy the ‘Paper Profile’ modernised its production eco-labelling requirements. technology and upgraded the The discharged effluent will wastewater treatment plant meet the requirements in with a new floating biological terms of total suspended bed with advanced mixing solids, biological oxygen technology. The discharge demand, chemical oxygen from the plant, at 4 kg of demand, nitrogen, phosphates, chemical oxygen demand (COD) absorbable oxygen, temperature per tonne of produced pulp, and colour. The new plant is already below the future utilises an activated sludge goals for the European Union. reactor process. The process Capture of suspended solids in is likely to marginally increase the biological treatment plant energy consumption. However, increased from 11% in 1995 within the context of the current to 88% in 2003. Indicators for upgrade of the mill, there will biochemical oxygen demand still be an overall decrease in (BOD) and COD reduction energy consumption per tonne efficiencies improved to 90% of air-dried pulp. and 97% respectively in 2003. In 1999 the viscose plant, SWIECIE WINS which used chlorine in its INTERNATIONAL AWARD bleaching process, was closed FOR WATER MANAGEMENT down. A combination of new Below: Mary-Anne Murray, Above: (Left to right) During the World Water Week technology and conservation environmental advisor at Anglo Mrs Viveka Bohn, Sweden’s in Stockholm in August 2003, efforts has enabled Frantschach Coal Australia’s German Creek Ambassador in the Ministry of Frantschach Swiecie SA was Swiecie to reduce its freshwater mine, and technical services the Environment, with Krzysztof honoured for its outstanding consumption by 53% over the manager, Richard Holland, Sêdzikowski, chief executive of efforts over the past 10 years last decade. test the saline water in the Frantschach Swiecie in Poland mined-out open cut pit used for and Maciej Kinda, production storing the excess water from director, at the presentation of underground mining operations the 2003 Swedish Baltic Sea Water award for excellence to Swiecie

WATER MANAGEMENT AT on site in mined out, open GERMAN CREEK MINE IN cut pits. The saline water is AUSTRALIA also recycled through the coal Anglo Coal Australia’s German handling preparation plant, used Creek mine is located in for dust suppression on internal the Bowen Basin of Central haul roads, and supplied to a Queensland. As the area was neighbouring mine for use in once an inland sea, mine water its operation. Other options to from this area is highly saline reduce the quantity of excess and unsuitable for release into water or to utilise the saline the surrounding watercourses. water are being investigated Accordingly, management of through various research water at the mine is extremely initiatives. In order to ensure important. that downstream water quality is not affected by the mining German Creek mine retains operations, German Creek all excess water from open operates an extensive water- cut and underground workings monitoring programme.

Anglo American plc Report to Society 2003 Environment 31 CONSERVING BIODIVERSITY

e are committed As a member of the ICMM, we challenges for conservation to the wise use were part of the first industry in the region. Agriculture, Wof environmental group to state unequivocally prospecting and mining have resources and the active that we will not explore or mine impacted on the Succulent Karoo stewardship of land and in existing World Heritage sites. landscape. This fact, combined biodiversity. We will continue to work with with the potential impact of the World Conservation Union climate change, prompted the ThisBody global copy view requires specific (IUCN) to try to find a way to desire to develop a regional actionwhehwhewhehwcshcuisdh on the ground. Our ch access land and realise mineral strategy which would integrate approachduischdi such is characterised idsuch sdiuch firstly economic potential, as well as conservation into existing land bysdiuch an assessment siduch siduch of sdiuchthe risks sdiou preserving and, in some cases, uses and build on existing thatchsdcui our sdhcvioperations gh csdiufh might sdiuchpose enhancing biodiversity potential, government and civil society forsdic local species and ecosystems under clear and equitable initiatives. The Succulent Karoo and secondly, where there is rules consistently applied. We ecosystem programme (SKEP) a material identifiable risk, the believe that, by using the most evolved as a bi-national initiative development of Biodiversity modern technology and seeking to develop conservation as Action Plans (BAPs). In 2003, imaginative solutions, our a land use rather than in we requested all our operations industry will be able to borrow place of land use. The Critical that have significant biodiversity land and return it to suitable Ecosystem Partnership Fund risks to produce BAPs and 35% alternative land use. has a R60 million ($8 million) have now done so. These BAPs investment strategy to support require partnerships with experts INTERNATIONAL civil society conservation and local communities, and BIODIVERSITY INITIATIVES activities in the Succulent Karoo adherence to our biodiversity • Ten-year support for the Kew hotspot in the initial phases of and from Anglo Base Metals’ strategy and guidelines. Millennium Seedbank the programme. head office participated in the Biodiversity is now broadly ecosystem programme planning defined as the diversity of living • Five-year partnership with the Three Anglo Base Metals mining process that culminated in a organisms and ecosystems, as United Nations Environment operations (Namakwa Sands, number of specific initiatives. well as the interactions between Programme’s World Black Mountain and Skorpion humans and nature. Conservation Monitoring Zinc) are located within key Namakwa Sands is actively Centre (UNEP/WCMC) to biodiversity priority regions of participating in the SKEP Local BAPs, however, need develop an integrated global the Succulent Karoo. Namakwa advisory committee. The to be seen in the context of biodiversity database Sands is located in the central company will assist in refining regional and national initiatives • Partnership with the Global Namaqualand coast area, Black biodiversity restoration and a part of our strategy calls Centre for Post-Mining Mountain is located in the guidelines in areas under for site-specific plans to be Regeneration at the Eden Bushmanland Inselberg area, greatest land-use pressure. integrated with those of the Project, to address the and Skorpion Zinc is adjacent Its own effective rehabilitation region. In the United Kingdom, challenges of orphaned and to the Sperrgebiet in Namibia. activities and the experience Tarmac works closely with Staff from all three operations abandoned mines, and it has gained will benefit all English Nature and, in southern mine closure. Africa, Anglo Base Metals’ participation in the Succulent THE SUCCULENT KAROO Karoo Ecosystem Programme ECOSYSTEM PROGRAMME (SKEP) demonstrates this (SKEP) in practice. The Succulent Karoo biome is an extraordinary global At the international level we biodiversity treasure that ranges are committed to work in from southern Namibia through partnership with others to Namaqualand to the southern realise the global objectives of Karoo in South Africa. With over the Convention on Biodiversity, 6,000 plant species, 250 species which was agreed by over of bird, 78 species of mammals, 150 governments in 1992 132 species of reptiles and at the Rio Earth Summit. amphibians and an unknown number of insects, it is the world’s Above right: The succulent most diverse arid environment. Conophytum burgeri (Burger’s Over 40% of these species are onion), which is endemic to the unique to this area and nearly Black Mountain area 60% of the biome needs to be protected in some way. Right: The semi-arid area around Black Mountain which forms part Despite low human population of the Succulent Karoo biome densities, there are many

32 AngloAnglo American American plc Reportplc Report to Society to Society 2003 2003 EnvironmentEnvironment participants in achieving the assisted with the relocation of SKEP vision. Similarly, Namakwa 14,000 indigenous aloes from Sands’ interaction with the the mine’s new Zwartfontein SKEP implementation process South area ahead of the soil will assist the company in stripping and mining programme. reﬁning its own biodiversity Some of these aloes were and post-mining land use donated to a conservation centre restoration objectives. in the local town of Mokopane, others to members of Operation Through Black Mountain, Anglo Wildﬂower (an NGO committed American is involved in the to saving indigenous vegetation) Bushmanland Conservation and the balance was re- Initiative, a project in which established on the mine’s waste a variety of stakeholders are rock dumps which are in the working to establish a 60,000 process of rehabilitation. The hectare protected area, as success of the operation was well as to pilot local economic based on partnerships with development activities. Mark authorities and communities. Botha, co-director of the Botanical Society of South During the course of the Africa’s conservation unit notes: environmental impact “Although the Bushmanland assessment conducted for Conservation Initiative is still in the expansion project at its infancy, the Botanical Society Zwartfontein South, a new is extremely encouraged by the species of the genus Corchorus support for and commitment was recorded. Anglo Platinum MONDI ACHIEVES GAINS in KwaZulu-Natal. Since 1990, to this project shown by Anglo funded an extensive search IN WATTLED CRANE three new pairs have taken up American personnel. Moreover, to determine the occurrence POPULATION residence on Mondi land in the this support comes from all of the species in this area and The critically endangered North East Cape Forests, joining levels within the organisation, elsewhere in South Africa. Wattled Crane is a discerning the three in KwaZulu-Natal a sure sign that the relationship During this time, the design bird that needs healthy wetlands that have been in residence is a balanced one. Although of the proposed pit was on which to breed. There are for far longer. Another pair is both parties will obviously need changed to accommodate the only 82 known breeding pairs showing real interest in a newly- to maintain their independence preservation of the plants, and in South Africa so it is a real rehabilitated wetland, also in as the dialogue on mining and the plant population was fenced compliment that they are choosing KwaZulu-Natal. The Wattled biodiversity matures, the mutual off and monitored. In March rehabilitated wetlands on Cranes are monitored monthly. trust that has been built bodes 2003, following the discovery Mondi’s commercial plantations well for rational resolution and formal documentation of in the north eastern Cape and of any difference of opinion the species in other parts of the as well as for exploiting the country, government authorities obvious synergies that are being gave permission to PPRust to generated.” continue mining in the area.

ACTIVE STEWARDSHIP OF LAND AND BIODIVERSITY AT POTGIETERSRUST PLATINUM MINES Potgietersrust Platinum Mines (PPRust) was instrumental in identifying and funding research Above: Carlvin Shiburi and into a previously unidentiﬁed Piet Makletji, members of the plant species during a multi- local community who were party programme to eradicate employed and trained by invader species and protect Anglo Platinum to assist in the indigenous plants. search for more populations of Corchorus micranthus Members of the local community were employed and trained Right: Mondi’s extensive to assist in identifying and wetland rehabilitation removing invader species, in programme in South Africa particular the wild tobacco is creating suitable habitats and prickly pear plants which for the critically endangered are declared weeds. They also Wattled Crane

Anglo American plc Report to Society 2003 Anglo American plcEnvironment Report to Society 2003 Environment 33 PRODUCT STEWARDSHIP AND INNOVATION

While incremental change is important in ongoing management and reduction of environmental and social burdens associated with our products and processes, innovation is needed to build a more sustainable future. Various projects were launched throughout the Group to create an environment that would foster innovation and build effective knowledge-sharing across the Group.

INNOVATIVE PRACTICES AT BASE METALS OPERATIONS Anglo Base Metals launched a number of initiatives in 2003 designed to stimulate innovation and knowledge sharing and realise continuous improvement in all dimensions of performance. A review of technology trends was undertaken to develop understanding of technologies that, in the next 20 years, could change the way Anglo Base Metals does business or cause significant changes in the metal pricing structures. Specific focus areas were water addition to normal duties. This through aquifers. For the past and energy use, emissions has required extensive training seven years, Boart Longyear prevention and management, and the acquisition of computer has been contracted as a land use and alternative and management skills by third party supplier to apply sources of power. As a result, team members who have this technology to subsurface 34 technological trends are experienced personal as well investigations and remedial work being actively investigated by as work benefits. on a contaminated aquifer at the Anglo Base Metals technical Cape Cod. teams based in Johannesburg GROUNDWATER POLLUTION and Santiago. CONTROL Investigations commenced in Boart Longyear’s environmental the 1980s into the extent of Tapping into the creative division in the United States is contamination of this fast- resources and the experience using a revolutionary method flowing sole source aquifer of the entire workforce to to collect water samples from that provides fresh water to identify innovations in practice polluted aquifers and apply several hundred thousand is an approach being tested remedial measures to purify the residents. Remediation work at Lisheen Mine in Ireland and water. With the use of sonic started in 1996, and sonic Namakwa Sands in South Africa, drills, casings and core barrels drills were selected over other with a formalised process for are vibrated into the ground drilling methods due to their collecting, recording and driving using harmonic wave energy, unique qualities of penetrating ideas to action. Ideas that could with a distinct advantage. The difficult soil conditions, speed contribute to the profitability and diameters of the casings provide and cleanliness. To date, over sustainability of the operations ample room for sinking pipes 200 wells have been drilled have already been evaluated. to several different levels to to varying depths. The data In Chile another novel approach recover multiple samples from gathered from the soil and is being tested. The managerial one borehole. The combination water profiling have enabled Above: Boart Longyear’s role normally filled by a of continuous soil samples and environmental scientists to sonic drill rig collecting soil supervisor is being divided, groundwater chemistry has understand the complexity of and groundwater samples for by the team, into six leadership given environmental scientists the aquifer and design effective analysis by environmental roles. Each operator undertakes a far greater understanding remediation strategies to restore scientists a part of the leadership role in of how contamination moves the quality of the water.

34 Anglo American plc Report to Society 2003 Environment TARMAC’S RECYCLED from the project site, further ASPHALT PROJECT AT THE reducing vehicle movements. PORT OF TYNE DOCKS Reductions in energy use and

Sustainability factors have CO2 emissions were achieved become an important part of with the cold-mixed asphalt Tarmac’s business. When the manufactured and supplied by Port of Tyne Authority in the Roadstone Recycling (a Tarmac United Kingdom needed paving joint venture company). The and ancillary works for a 49-acre aggregate does not require parking site for 8,000 cars at heating to high temperatures the car import terminal, it was as is the case with conventional a Tarmac subsidiary company hot-mixed asphalt. The project that won the tender. Alston met the aims of the Tarmac Limestone Company (ALCO) environmental policy to offered an innovative cold-mixed “demonstrate the efficient asphalt using recycled blast use of energy, water and raw furnace slag in place of virgin materials, taking appropriate aggregates, a significant opportunities to minimise waste reduction in road usage for and to re-use and recycle”. the transport of material to the site, and a reduction in There were no significant

CO2 emissions from the asphalt obstacles encountered during manufacturing process. the project until nature intervened in June 2003. The 26,000 tonnes of blast A nesting Kittiwake laid a furnace slag, a steel industry clutch of eggs in the centre of by-product, were transported the project. This meant that to the site in ten shiploads surfacing work had to continue from Tarmac’s Teesport works around the nesting site. The job 50 kilometres away. This led to was completed once the eggs a significant reduction of road had hatched and the young birds vehicle movements and the had flown the nest. The contract avoidance of potential traffic was completed in August 2003, congestion. The asphalt plant on schedule. was less than one kilometre

Above and left: Sustainability factors led to Tarmac winning the tender to pave this 49-acre car import terminal at the Port of Tyne docks in the United Kingdom. Tarmac’s cold-mixed asphalt, which was used to pave the car parking site, achieves reductions in energy use and

CO2 emissions

Anglo American plc Report to Society 2003 Environment 35 WASTE MANAGEMENT

EXTENDING RECYCLING TO COMMUNITIES Anglo Platinum’s Potgietersrust Platinum Mines (PPRust) has implemented a waste management system to deal with both hazardous and domestic waste and limit the impact on the environment. Twenty waste collection and recycling facilities were established across the mine site and employees are being trained to separate materials into the designated bins and skips. The mine is currently introducing recycling initiatives into the surrounding communities.

The mine has employed and trained two members of the local community to work at its landfill site to prevent recyclable material from being thrown away and to ensure that any industrial and hazardous waste is re- routed to the appropriate collection sites.

SMALL BUSINESS RECYCLING INITIATIVE Scaw Metals in South Africa has found an economic alternative to a sizeable waste problem. In 2003, 8,700 tonnes of mill Globally, our business units manage 97 large Waste reduction and recycling initiatives scale, which in the past would have been volume process waste facilities, 16 fewer exist at most operations. A number of sent for disposal, was separated on site than in 2002, due primarily to divestments. these have turned the problem into a and sold to a company trading in polymers, Of these, 52 are in active use. The facilities business opportunity, as illustrated by chemicals and associated products. The mill occupy an area of 5,088 hectares, a reduction the examples alongside. scale is blended with various minerals for in area of 34% year on year. sale to the metallurgical industry.

SLAG REPROCESSING SUCCESS Over a period of some forty years, ferroalloy production at Zimbabwe Alloys accumulated nearly eight million tonnes of waste in the PROCESS WASTE FACILITIES (MINE TAILINGS, COAL FINES, SLAG) form of process slag. In the early 1990s, Zimbabwe Alloys examined the feasibility of 2002 2003 reprocessing the slag and a metal-from-slag Total number of process waste disposal facilities 113 97 plant was commissioned in 1994. Between 1995 and 2002, four million tonnes of slag Number of facilities in active use 58 52 were reprocessed, generating $38 million of Total area occupied by facilities (hectares) 7,702 5,088 saleable alloy. The reprocessing of the old slag was completed in April 2002 and slag Total number of audits (third-party and in-house) 124 111 from the high carbon ferrochrome operation is currently being processed.

The slag dump area has been completely cleared and is being transformed into an internal wetland into which all wastewater and effluent from the operation will be directed for ponding and subsequent treatment to eliminate the potential for any pollution of downstream water systems.

Above: Two members of the community at Anglo Platinum’s Potgietersrust Platinum mine have been employed and trained to ensure that waste is correctly sorted for disposal at the mine’s landﬁll site

36 Anglo American plc Report to Society 2003 Environment STEWARDSHIP OF LAND

The legacy of mine closure was in the past established around the VCC mining areas and the quarry, now renamed Berwick Woods, often one of environmental degradation that it would facilitate business development into a community woodland and nature and high unemployment. To avoid this, in the region in conjunction with Zimele, the haven. A total of 12,000 trees and planners currently work from feasibility Anglo American small business development shrubs were planted, existing reed beds stage to minimise environmental damage initiative. A community census and a soil – a diminishing habitat in the UK – were and to create rolling rehabilitation that survey were carried out on the three farms extended, and a pond created with a safe reduces costs at a time when the mine is to determine the potential for small to dipping platform for local children. The less financially viable. Creative ways are medium-scale sustainable farming projects. attractions to nature were enhanced through sought to avoid the development of totally An important aspect of this project is that advice from English Nature and the London dependent communities and to stimulate it will be integrated with a passive water Borough of Havering. Berwick Woods now direct and indirect economic activity. treatment process to be established at the has London’s largest area of wet woodland. Community development activities around Vrede section of VCC. Some 2,000 metres of surfaced pathways, operating mines are increasingly geared to a bridleway and a car park were also building the capacity of the community to A Swiss company is establishing a built and a large area of open grassland maintain an acceptable standard of living R150 million ($20 million) project at VCC. established. Two new bridges across the after closure. This is, however, relatively The old coking coal plant site is set to Ingrebourne river link the communities of new thinking and practical solutions are still become a food processing plant and aims Rainham and Hornchurch. being sought for old problems. to export organically grown beans to Switzerland. Water will be supplied from the The local community was consulted from the We are currently providing $652 million Boulder dam that was built for the colliery, outset and a ‘friends’ group was established against future closure liability, of which and the electricity supply that was removed in 1998 to act as caretaker and stakeholder $493 million are for restoration and following closure of the washing plant will in the future of the site. Quarry manager rehabilitation and the balance for be reinstalled by Anglo Coal. The plant is Steve Wallis notes: “The key to the site’s decommissioning. under construction and the project involves success is the involvement of the local the Abaqulusi municipality, commercial and people. The greatest reward for us was During 2003, 58,024 hectares were used in emerging farmers and local communities working with the community, getting them mining and smelting operations worldwide, situated in a 100-kilometre radius from involved and knowing the enjoyment they down 10% from 2002. Total land managed the plant. Scheduled for completion in will get from this site in the future.” by Mondi Forests is 516,252 hectares, of April 2004, this development will assist in which 293,994 is afforested. A further reviving the regional economy through the The project won the premier award from 102,410 hectares owned or managed by creation of some 400 permanent jobs. the Quarry Products Association (QPA), Mondi are grasslands or wetlands. which represents over 90% of the FROM DERELICT QUARRY TO NATURE United Kingdom’s quarrying industry. The A Group land management policy has been HAVEN judges’ report commented: “This scheme drafted and will be finalised and disseminated By the end of its life as a sand and gravel demonstrates how an urban community can in 2004. It will provide the framework for quarry in the late 1970s, little restoration be successfully involved in a restoration drawing together the management of diverse had taken place at the derelict East London project which has very strong nature legal and environmental risks. quarry in Essex, save that achieved by conservation objectives.” Simon van der Byl, natural regeneration. When this site was director-general of the QPA said: “Berwick BREAKING THE CYCLE OF taken over by Tarmac in the early 1980s, Woods deserves our highest congratulations DEPENDENCY AT CLOSED COLLIERIES it was being used as an unauthorised for its outstanding restoration. It represents During the early 1990s when coal mining in dumpsite for old cars and other waste the most excellent example of land being Northern KwaZulu-Natal was already materials. Working closely with the local returned to the community in wonderful declining, the Vryheid Coronation Colliery (VCC) community and NGOs, Tarmac transformed condition after quarrying.” closed. Unemployment increased and many of the mineworkers who were retrenched struggled to break their dependency on the mine. Access to land was identified as a hurdle facing employees struggling to establish alternative livelihoods. In addition, the former employees needed help in the development of small-scale businesses as alternative employment was not available.

Anglo Coal South Africa announced in November 2002 that land would be donated by the company to the three communities

Right: The replanted reed bed, a diminishing habitat in the United Kingdom, and one of the new bridges at Berwick Woods, which was transformed from a derelict quarry following restoration by Tarmac

Anglo American plc Report to Society 2003 Environment 37 CHINA’S CENTURY SOC ANGLOI AMERICAN’SETY SALES OF PLATINUM, DIAMONDS AND GOLD INTO CHINA’S BOOMING ECONOMY ARE CURRENTLY VALUED AT AROUND $1 BILLION

38 AngloAnglo American American plc plc Report Report to to Society Society 2003 2003 SocietyGeographic diversity BUILDING SOCIETAL CAPITAL

OUR GOAL IS TO The nature and extent of interactions To assist our operations in realising between major mining or industrial these objectives and to maximise MAXIMISE THE POSITIVE operations and their neighbouring the effectiveness of their community CONTRIBUTIONS WE communities have changed significantly interactions, we have introduced a in recent years. Increasingly, companies requirement that all significant operations CAN MAKE, ALONGSIDE have become aware of the complexity have an annually-reviewed three-year of their direct and indirect impacts on the community engagement plan in place. GOVERNMENTS AND environment, social structures, cultures Elements in guiding classification as a SOCIETY, TOWARDS and livelihoods. Alongside national and significant business unit include numbers provincial governments, local communities of employees, environmental impacts, BUILDING A MORE are key stakeholders for any major economic impact relative to the vicinity SUSTAINABLE FUTURE resource-based project. and licensing/planning issues. Using these criteria, 134 managed sites have Communities have also become more been designated as significant, of which assertive and have a legitimate expectation 118 (88%) had community engagement of consultation on issues that affect them. plans in place at the end of 2003. We understand the need to build trust and demonstrate good stewardship at all Consequently, we made good progress our operations. It is particularly important towards achieving our 2003 target of having in mining, from the start of exploration community engagement plans in place at to planning for the social challenges of over 90% of our significant operations. eventual mine closure. The target for the end of 2004 is for these plans to be operative at 100% In developing and maintaining engagement of significant operations (excluding any with local communities, we strive to achieve recent acquisitions). the following objectives:

• Awareness and mitigation of any adverse The community engagement plans contain impacts objectives, details of stakeholders, impacts • Understanding the needs and priorities of and issues and how these will be managed, local people details of community investment and socio-economic upliftment projects, • Promotion of the long-term sustainable complaints procedures and reporting development of local communities mechanisms, resources and management through partnerships, capacity building, accountabilities. See also our report Good local business development, community Neighbours: Our Work with Communities. investment and training initiatives.

Left: Young pupils celebrate the opening of a new wing at the Shree Bharat Sharda Mandir school, a Chairman’s Fund project in Lenasia, South Africa

Right: One of the social investment projects of Neusiedler’s Syktyvkar in Russia is this new building at the Parma summer camp for children of employees and the local community

Anglo American plc Annual Review 2003 Anglo AmericanAnglo American plc Report plc to Report Society to 2003Society 2003 Society 39 SMALL BUSINESS INITIATIVES

Anglo American uses During 2003, our divisions procurement and management and operations (excluding mentoring to promote independently-managed the development of new subsidiary AngloGold) concluded businesses in order to in excess of R3.1 billion facilitate diversification, skills ($411 million) in transactions enhancement and economic with black-owned companies sustainability. and through their various business development This requires us to understand initiatives, compared with the capacities of potential R2.1 billion ($278 million) local suppliers and to ensure in 2002. that tenders are not all so large and inflexible that they Small BEE companies frequently are out of reach of smaller have problems raising equity. firms. Mentoring is given to The BDOs assist in putting promising local entrepreneurs. forward business plans to Our operations play a catalytic Zimele for approval. If the role in helping to establish new venture is viable, Zimele will companies and co-operatives. take a minority equity stake of This expertise is best developed up to 30% and provide financial in South Africa and Zimbabwe, support and skills transfer. but new business development and sustainable livelihoods are important for our operations Zimele adds further value in many different developing through the hands-on transfer countries. of business knowledge and skills and provides advice on strategy, BUILDING A DIVERSE markets, finance, systems and SUPPLIER BASE corporate governance. It uses Zimele, our black economic an incubator approach to nurture empowerment (BEE) and investments and entrepreneurs, business development initiative, matching up partners with has been facilitating entry for business and technical skill, and emerging black businesses then gradually reduces their into South Africa’s economic dependence on Zimele. mainstream for over a decade. It is currently invested in ANGLO KHULA MINING 27 empowerment ventures FUND ESTABLISHED that collectively employ over The R40 million ($5 million) 2,000 people and generated Anglo Khula Mining Fund was turnover exceeding R230 million launched in March 2003 by ($30 million) during 2003, Anglo American and Khula when it invested in 12 new Enterprise Finance (a South companies. African Department of Trade • Leeuw Mining and Exploration • Basfour Dolerite Aggregate and Industry initiative). This bought the Anglo Coal Quarry is involved in the Zimele has two key areas of joint venture between Khula and KwaZulu-Natal coal assets (an opencast mining and operation - procurement and Zimele facilitates the entry of estimated 104 million saleable marketing of dolerite, a business development. Through junior mining ventures into the tonnes) in August 2002 and multi-purpose building and business development officers mining sector and concentrates production at Vaalkrantz construction aggregate, from (BDOs) in the various operating on the financing of the commenced in October 2003. deposits near Pietermaritzburg divisions, we direct our feasibility phase of a project. in KwaZulu-Natal. purchases towards companies The maximum investment for • Imbani Coal, which is focused that are black-owned or have any mining project is R5 million on the exploration, mining, For further information see majority black shareholding. ($0.7 million). beneficiation and marketing http://www.zimele.co.za The BDOs identify opportunities of coal reserves, acquired within the divisional purchasing During the year, the fund prospecting rights from departments and, using an invested in Leeuw Mining and Anglo Coal in the Carolina Above: South African Minister of extensive BEE supplier database, Exploration’s Vaalkrantz colliery area of Mpumalanga. Mining Minerals and Energy, Phumzile approach those suppliers who (10%), Imbani Coal (15%) and commenced in June 2003 and Mlambo-Ngcuka and Tony Trahar are able to tender for the supply Basfour Dolerite Aggregate 40,000 tonnes of steam coal at the launch of the Anglo Khula or service contract. Quarry (20%). were exported by November. Mining Fund in March 2003

40 Anglo American plc Report to Society 2003 Society EMPOWERMENT THROUGH ENTERPRISE

PARTNERSHIPS FOR CHANGE DEVELOPING MARKETABLE SKILLS in excess of 400 jobs. Its production Anglo American is a member of the Anglo Platinum supports a number of capacity is currently 18,000 tonnes of Business Trust, a R1.8 billion ($238 initiatives aimed at addressing poverty charcoal per annum. The capital to buy million) partnership between South African levels in the vicinity of their operations the necessary kilns and equipment was companies and the government, to which through training programmes to assist in provided by Mondi Forests, FIETA and the we contribute some R20 million ($3 million) developing marketable skills for out-of- BLCF. Mondi Forests also provided office annually. Michael Spicer, executive vice school youths. The Addicted to Business space and other management and technical president corporate affairs, comments: project at Bafokeng-Rasimone Platinum Mine support resources. “Anglo American is part of the founding promotes entrepreneurship. Since 2001, group of the Business Trust. In 1997, I was over 75 people have been transformed A transparent selection process identified one of a group of business people who from job seekers to job creators, with 13 entrepreneurs at a number of different started talking to then deputy president visible sustainable change in entrepreneurial sites. Each entrepreneur directly employs Thabo Mbeki and his office about this behavioural patterns and socio-economic between 25 and 30 people. Accredited concept and the opportunities that such a actions. The outcome-based modules include training has been provided to 150 people partnership could create, and the Business computer literacy, product development, on topics including financial planning, health Trust was established in 1998.” money generation and business theory. and safety, kiln operation and forestry. They follow an unconventional approach The 13 entrepreneurs own 60% of the Skills have been improved for some 15,000 that uses experiential learning and Blackgold Forest Products shares, with tourism practitioners and 5,000 previously maximum participation. During the six Mondi holding 30% and the Community unemployed people who are now engaged in months of training the participants ‘earn Trust 10%. Mondi will transfer 20% of its the tourism industry. Small enterprises have while they learn’. shares to the Community Trust over the next been helped to undertake over R700 million two years at no cost. ($93 million) worth of transactions, thereby BLACKGOLD FOR COMMUNITIES creating and sustaining some 13,000 jobs. Blackgold Forest Products, established in In another development, Mondi is currently The malaria control programme initiated by November 2002, is a charcoal production working with an international environmental the Trust has attracted international funding venture in South Africa jointly funded by NGO to explore the possibility of introducing and reduced the malaria infection rate by Mondi, the Forestry Industry Education and clean charcoal technology to rural over 70% in the region encompassing Training Authority (FIETA) and a British communities. The use of forest waste and South Africa’s KwaZulu-Natal province, development fund, the Business Linkage alien weeds for the process presents real Swaziland and Mozambique, thus improving Challenge Fund (BLCF). Waste timber is opportunities for rural people to be involved the lives of millions of people and increasing collected from Mondi Forests’ plantations in a commercial process that benefits the the attractiveness of this area to tourists and converted into charcoal for sale to local environment and reduces dependency on and investors. industrial and domestic users. The project non-renewable fossil fuels. It also reduces has generated an average monthly income the risks posed by combustible material The efficiency, effectiveness and quality of of R700,000 ($93,000) and has created at the operations. schooling has been improved by raising the reading ability of a million primary school pupils, enhancing 500 secondary schools (in which mathematics results and university entrance qualifications now exceed the national averages) and supporting the restructuring of the technical schooling sector. The Trust has also assisted in creating efficient integrated systems for the administration of justice. For every $1.00 invested by the Business Trust’s funders, projects worth $2.50 have been undertaken, $0.50 has been deductible for tax purposes, and less than $0.05 has been spent on administration.

South African business and government are now planning to use their combined skills and resources in a second phase of the Trust to address aspects of the challenge of unemployment and skills creation.

Right: Logs being stacked in a charcoal kiln at the Blackgold community project

Anglo American plc Report to Society 2003 Society 41 COMMUNITY ENGAGEMENT

MANAGING THE IMPACTS OF OUR Quarrying of limestone began at Swinden OPERATIONS in 1793 and by the early 1990s Swinden’s Our operations are significant users of future looked bleak. Its licence to operate natural resources, many of which are not was being questioned by a community renewable. To ensure that our operations grown tired of the unsightliness of the place, contribute to sustainable development its night time operations, and the noise and it is critical that they produce a lasting dust generated by the transportation of the enhancement of local human and social limestone aggregates by road. capital. This may be achieved through traditional routes such as taxes, wages Following extensive consultation and and investing in the skills of our workforce. communication with the local community However, we also seek other ways of and the Yorkshire Dales National Parks maximising the developmental impact authority, approval was granted for plans of our investments. to move the entire plant comprising offices, weighbridge, maintenance and welfare While all major new projects or expansions facilities inside the quarry. As a result, now carry out a social impact assessment, the plant is now hidden from view. many mature operations have never systematically established what their The surrounding land has been rehabilitated, social and economic impacts are on their there is a permanent ban on night time surrounding communities. Accordingly, work working and most of the aggregates are started in 2002 on a flexible process that moved by rail. A liaison committee was would enable sites to: established to discuss ‘good neighbour’ operating policies, and Swinden is now • develop a more structured dialogue with out of the toolbox started at the end of an example of best practice in the industry. stakeholders October 2003. Although not mandatory, The licence has been extended to 2020, at business units have responded positively which time the site will be returned to the • improve the management of social and we expect significant take-up during national park. The quarry will be allowed to impacts 2004. We intend to develop a broader fill up with water, creating one of the largest • generate uniform social key performance integrated assessment toolbox that is lakes in the Yorkshire Dales. indicators applicable to the exploration phase. The chairman of the parish council of • build management capacity, and LOCAL COMMUNITY AFFIRMS Cracoe, the nearest community to Swinden, SWINDEN QUARRY’S BEST PRACTICE stated: “The work Tarmac has recently • support the social dimension of long-term In August 2003, chief executive Tony Trahar completed is outstanding. It shows a real closure planning. officially opened Tarmac’s new plant at commitment to improving our locality, Swinden quarry located in England’s both now and for the future. What is most Three pilot projects to develop the Yorkshire Dales national park. The following impressive, though, is the involvement that methodology were conducted in day more than 1,000 visitors, mostly local we’ve had in every stage of the project. Australia, Brazil and South Africa in the residents, farmers and business people As a community, we’ve been consulted and closing months of 2002. During 2003, visited the plant. our voices listened to and acted upon.” extensive internal consultation refined the methodology to yield an array of 22 tools covering topics such as supporting local business development, assessing human capital, evaluating community investment programmes, building partnerships and closure planning.

The development of the Socio-Economic Assessment Toolbox (SEAT) methodology represents a significant investment. Roll

Above: The new Socio-Economic Assessment Toolbox which was introduced to business units in October 2003

Right: Members of the community at the opening of Tarmac’s new plant at Swinden quarry in the United Kingdom in August 2003

42 Anglo American plc Report to Society 2003 Society INDIGENOUS PEOPLES

Our approach to sustainable development These permits are obtained from the Kativik recognises specific local priorities as well as regional government after consultation global issues and universal principles. The with the village landholding corporations, historical and political context within which which control all activities on lands of indigenous peoples, cultures and land rights exclusive rights. are handled varies between nations and has resulted in significant legal developments in At the outset, our exploration team recent years. In order to understand better established contact with the local people. the key issues involved, representatives They met with the mayor of Salluit and the from Anglo American’s corporate centre, director of the landholding corporation to AngloGold, Anglo Platinum, Anglo Base discuss proposed activities with them. Metals and Anglo Coal attended a workshop Further meetings were held in Puvirnituk, in March 2003 facilitated by Business for a village some 100 km south of the project. Social Responsibility and First Nations The local people are receptive to the mining Worldwide. This has contributed to the industry, as they have experienced the evolution of our thinking in this complex development of a mine and have seen the area, and has assisted us in giving effect benefits that mining can bring. Being aware to our business principles which state: and very watchful of potential environmental aspects, the communities have noted our “We recognise the sensitivities involved in proactive approach. REACHING AGREEMENT ON addressing issues that relate to the cultural CULTURAL HERITAGE heritage of indigenous communities. We will During the northern summer of 2003, During 2003, Anglo Coal Australia signed seek to ensure that such matters are handled six people from Salluit worked on the a cultural heritage investigation and in a spirit of respect, trust and dialogue.” project for a total of 209 man-days. The management agreement (CHIMA) with the company used Air Inuit for most travelling Gangulu people, the traditional owners of ESTABLISHING TRUST IN THE and cargo transport between Montreal and the Callide and Dawson Valleys, to cover CANADIAN ARCTIC Salluit. Provisions for the exploration camp all Anglo Coal Australia’s mining and Our exploration teams begin conceptual were sourced from the local stores, and exploration activities at Callide and Moura planning to minimise potential social and community-owned hotels were used. mines and the northern portion of the new environmental impacts at the same time Theodore mine. as they begin geological exploration, In August 2003, a visit of local dignitaries, and these three aspects are managed in including the mayor of Salluit and senior Having established contact with the Gangulu parallel. This is reflected in the exploration members of the Qaqqalik landholding people at the inception of the proposed programme that commenced in August 2002 corporation in Nuvumiut, was organised project, Anglo Coal Australia personnel at the West Raglan project in the Nunavik to our installations and operations at developed a relationship with them in the area of the Canadian Arctic. The Nunavik Lake Chukotat. The exploration team will ongoing process of the CHIMA negotiations. area covers 507,000 km2 and includes ensure that active engagement continues Survey and management work to identify 9,890 people in 16 Inuit villages. Permits to keep village leaders informed of our and protect any cultural heritage areas was are required for establishing a temporary exploration activities and that we address undertaken by specialists approved by the camp and carrying out exploration work. any concerns promptly. Gangulu people.

Anglo Coal and the Gangulu people have acknowledged that it is important to co- operate and work together in a manner that respects the needs of each party and their different constitutions and objectives. The agreement is intended to provide a long-term, clear and workable system of cultural heritage evaluation and protection, and to establish future strategies relevant to the management, protection and control of cultural heritage.

Above: Colin Toby (left) and Robert Tory, Gangulu indigenous group elders, at the signing of the Cultural Heritage Investigation and Management Agreement

Left: Inuit dignitaries visiting the West Raglan exploration project in the Canadian Arctic are (from left) Willie Keatainak and Joanasie Owpaluk, of the Qaqqalik landholding corporation, and the 2003 mayor of Salluit, Qalingo Angotigirk

Anglo American plc Report to Society 2003 Society 43 RESETTLEMENT

We have drafted a Group policy on community hall were built and occupied at a at the municipal graveyard chosen by the relocation of communities. This is still to total cost of some R67 million ($9 million). next of kin. The affected householders’ be formally adopted but aims to establish Twenty families elected not to resettle in the perception of the house and grave relocation a best practice norm in line with guidelines proclaimed township and chose to remain process remains positive and this has made such as those of the World Bank. Key in existing rural villages without title deeds, the process possible. principles include the avoidance of electricity or water delivered to their stands. unnecessary relocation, consultation and UNKI striving to ensure that living standards are Independent valuations were carried out and Anglo American in Zimbabwe applied the at least maintained and preferably enhanced. farmers were compensated for the loss of World Bank policies and guidelines on agricultural land. The communities, through involuntary resettlement to the second COLOMBIA a process of nine separate mass meetings, phase of the Unki resettlement exercise The resettlement at the independently agreed to a surface lease being granted in which 20 families were resettled on managed Cerrejón joint venture on which to the Twickenham platinum mine. The Rietfontein Farm. The farm was sold to the we reported in 2002 is addressed further Department of Land Affairs agreed that the government of Zimbabwe on a willing buyer, on page 51. market-related annual rentals would be paid willing seller basis in the early 1990s. to the traditional authority for community Compensation was paid for all losses at full GA-PILA upliftment. replacement value and land replaced with The resettlement of families by Anglo land. Villagers were provided with transport Platinum from the village of Ga-Pila to the A lengthy process of adjudicating land claims for their move and were assisted with land residential area of Sterkwater in Limpopo originating from apartheid era removals is preparation, seed packs and fertilisers. was completed in 2003. The new residential still ongoing. The Commissioner for Land Infrastructure and housing were improved area, built at a cost of R186 million Restitution gave his consent for all land and their productive potential has been ($24.6 million), has reticulated water, subject to restitution claims to be leased, restored. water-borne sewage and electricity. The thereby enabling approval by the Minister of provincial premier, Ngoako Ramatlhodi, Land Affairs. officially opened the new Sterkwater village that comprises 798 homes, eight shops, Anglo Platinum created a database of job two church buildings, two schools, a clinic seekers residing close to the mine to identify and a crèche. The contractors employed people for training or employment. A similar some members of the community and database identifies local business people. A the houses were built in accordance with business development officer was appointed South African building regulations. by Anglo Platinum to assist local businesses to tender for sub-contracts with major TWICKENHAM contractors. Prior to the commencement of the development of Anglo Platinum’s KRIEL SOUTH Twickenham mine in Limpopo province, it Forty households were identified on land was established that some 119 residences that was earmarked for coal mining at would be affected directly by the proposed Kriel South, now renamed Isibonelo colliery. mine. The area has extended rural villages Anglo Coal South Africa engaged a specialist with an estimated 40,000 families that fall consultancy to conduct individual household under traditional authorities headed surveys to gather information about the by nine diKgoshi (chiefs) and their councils. number of dependants, employment Infrastructure is limited. Only a few villages status, relocation preferences as well as have electricity and water comes from the sustainability assessment for each. scattered boreholes. One of the biggest A consultation process commenced and challenges was the management of this culminated in the establishment of a expectations within these poor communities field office to provide on-site support for and in particular within those communities the affected households. The World Bank’s that were not affected by the proposed mine resettlement guidelines were followed. project and who thought that they did not At the end of 2003, relocation agreements stand to benefit. were being signed in preparation for the relocation of households in 2004. After a social impact assessment, an integrated resettlement and development The relocation of graves on the affected plan was created. A search in the deeds land commenced in November, following the registry identified land, owned by the receipt of permits from the South African provincial government and in close proximity Heritage Resources Agency (SAHRA) for to the proposed mine, that had been graves older than 60 years, as well as earmarked for township development. Within the Provincial Department of Health for a year of agreement with the affected more recent graves. A registered funeral individuals, the township was proclaimed undertaker was contracted to exhume the and some 90 houses, two schools and a remains from each grave and inter these

44 Anglo American plc Report to Society 2003 Society TAKING A LEAD ON HIV/AIDS

IV/AIDS remains a major focus for all Anglo American Group companies Hand subsidiaries operating in ANGLO AMERICAN GROUP HIV/AIDS The magnitude of the health challenge southern and eastern Africa. Sub-Saharan POLICY OPENING STATEMENT posed by HIV/AIDS is such that individual countries in general are confronted by an Anglo American recognises the human companies cannot adequately address advanced epidemic which, if not effectively tragedy caused by HIV/AIDS, particularly it alone. A comprehensive and effective managed, will have devastating socio- in sub-Saharan Africa. We are concerned response to HIV/AIDS will require a economic consequences. In 2003, we made about the gravity and implications of the partnership between all stakeholders. great strides in the evolution of our HIV/ epidemic for our operating companies, Anglo American and its operating AIDS policy and strategy. the Group as a whole, our employees companies will, therefore, seek to work and their families and the communities with national and provincial governments Our Group HIV/AIDS policy was extensively within which we operate. Our aim is and local authorities, international donors reviewed during the year and published in to reduce the fear of HIV/AIDS and to such as the Global Fund to fight AIDS, December 2003. The opening statement of make a contribution towards minimising tuberculosis and malaria, and appropriate this revised policy is reproduced here. The the social, economic and developmental NGOs and communities in order to build full statement can be found on our website consequences of this epidemic. capacity for an effective response to at http://www.angloamerican.co.uk/hivaids/ the epidemic. ourresponse/policy.asp. The policy supports the key responses to the epidemic, namely elimination of stigma This policy statement forms the foundation and discrimination on the basis of real or The Group will extend its efforts to of our HIV/AIDS strategy, which seeks perceived HIV status, prevention of new publicise Anglo American’s responses to to respond effectively in the workplace, infections, care and support of employees the HIV/AIDS epidemic in highly affected extend the response into the communities infected and affected by HIV/AIDS, and countries and to demonstrate that the associated with our operations and build management and mitigation of the impact epidemic is manageable. We expect this partnerships with other stakeholders. The of HIV/AIDS. to have a positive effect on sentiment brunt of the HIV/AIDS problem for the Group towards investment in highly affected is in southern and eastern Africa and the The Group will respond to the human countries, particularly in southern Africa. following report confines itself to activities needs of the epidemic in a supportive, Such investment will help to tackle the in this region during 2003. positive and non-discriminatory manner, root causes of the epidemic, which lie in so that people living with HIV/AIDS are poverty, poor health, social disruption, THE WORKPLACE RESPONSE able to be open about their HIV status poor education and unemployment. We HIV PREVALENCE without fear of stigma or rejection. believe that Anglo American’s response The table below gives our best estimate, to the AIDS epidemic is a significant through a combination of prevalence The Group believes non-discrimination contribution to sustainable development surveys, actuarial projections and estimates, as well as consultation, inclusivity and and will help to ensure the continued of HIV prevalence among employees in encouraging full participation of all profitability of our businesses. Anglo American companies in southern and stakeholders are key principles which eastern Africa as at the end of 2003. should underpin its HIV/AIDS responses. VOLUNTARY COUNSELLING AND TESTING While HIV prevalence surveys give us a good indication of the extent of HIV infection within the workforce, the greatest HIV PREVALENCE IN EMPLOYEES – EASTERN AND SOUTHERN AFRICA challenge for the future is to encourage 31 DECEMBER 2003 employees to establish their individual NUMBER OF EMPLOYEES HIV PREVALENCE HIV status through a process of voluntary counselling and testing (VCT). Knowledge of AngloGold 42,000 29% HIV status is well recognised as being a key intervention for mobilising individuals to take Anglo Platinum 46,000 25% personal responsibility for containing the Anglo Coal 7,000 17% spread of HIV infection. Anglo Ferrous Metals 12,000 20% Uptake of VCT has been generally Anglo Industries 22,000 26% disappointing, with fewer than 10% of Anglo Base Metals 2,300 4% employees in AngloGold and Anglo Platinum coming forward for testing in 2003. Anglo Paper and Packaging 7,000 12% Elsewhere in the Group, there have been Corporate Centre and Exploration 1,000 5% some notable exceptions to this rule and in some business units, upwards of 50% of Total 139,300* 24% employees have undergone VCT following * Includes employees in Hippo Valley, Zimbabwe, and in independently managed subsidiaries education and awareness drives. VCT uptake AngloGold and Tongaat-Hulett has been identified as a key performance

Anglo American plc Report to Society 2003 Society 45 indicator of effective HIV/AIDS management ANTIRETROVIRAL THERAPY and business units will be encouraged to set In August 2002, we announced an ambitious PRELIMINARY ANTIRETROVIRAL ambitious targets for improvement in 2004. programme to provide antiretroviral therapy THERAPY OUTCOMES In order to succeed with VCT we need to at company expense to employees with • 94% of employees on antiretroviral create a climate that is conducive to testing AIDS. Implementation of this programme therapy back at normal work with emphasis on confidentiality, non- progressed very well during 2003, with discrimination, efficiency and caring. technical support provided by Aurum Health • 90% reported adherence to treatment Research (an AngloGold subsidiary). This is regimen: biological markers of WELLNESS PROGRAMMES FOR recognised as the largest employer- adherence are still being evaluated HIV POSITIVE EMPLOYEES sponsored AIDS treatment programme • 28% minor side effects Ideally, all employees who test HIV positive in the world. The Global Business Coalition should enrol into a programme of care and on HIV/AIDS (GBC) has commended us for • 2% serious adverse events support which includes: our leadership in this field. • 8% decline offer of treatment • understanding the disease through By year end, 1,048 employees were • 10% drop-out rate after starting counselling receiving antiretroviral therapy across • encouraging a healthy lifestyle all Group companies. Approximately one third of these employees presented with will be carried out at the highest level advanced (WHO Stage IV) AIDS disease at • offering nutritional supplements where of quality and integrity and we intend the start of treatment and it is reasonable to necessary that the information will be published in presume that without treatment they would independent, peer-reviewed medical journals • immune system monitoring through have died from their disease by the time of of international standing. The outcomes regular CD4 counts (an immune system publication of this report. Instead, most are of the research will be shared with other indicator) back at work and leading normal lives. The businesses and interested parties as part of challenge is to maintain lifelong adherence • preventing and treating opportunistic our joint contribution to understanding and to medical treatment. infections, especially tuberculosis enhancing the business response to HIV/ AIDS. This project is being supported by a ECONOMIC IMPACT ASSESSMENT • providing access to appropriate, affordable research grant awarded by GlaxoSmithKline. and sustainable antiretroviral therapy Aurum Health Research is carrying out a when clinically indicated. comprehensive assessment of the economic THE COMMUNITY RESPONSE impact of HIV/AIDS across all Group Our HIV/AIDS response will only be companies, in collaboration with the London During 2003, approximately 3,300 effective if our workplace programmes School of Hygiene and Tropical Medicine. employees were enrolled in HIV wellness can be extended into the communities This unique three-year project will seek programmes across the Group. Business associated with our operations. It is to determine the extent to which health units have been asked to set management extremely important that we ensure access interventions, particularly antiretroviral targets and create an environment that to HIV education and awareness, VCT and therapy, can modify the economic impact of encourages greater uptake of VCT facilities antiretroviral therapy to the dependants AIDS on business activities. This research in 2004. and/or partners of our employees. It is also important that we do not create islands of privilege within communities and ensure a broader application of effective HIV/AIDS interventions. No business can take on this burden alone – community outreach requires the building of partnerships with government, other employers, trade unions, NGOs and other community-based organisations (CBOs), faith-based organisations (FBOs) and international donors.

Left: Anglo Base Metals’ Namakwa Sands, in partnership with community representatives of the Greater Saldanha Bay region, initiated the establishment of the West Coast Community HIV/AIDS Initiative to promote awareness and provide education and support structures for the entire community. This mural, painted by local artist Elton Lesch, depicts the seven sub-forums of the Initiative and the logos of the sponsors

46 Anglo American plc Report to Society 2003 Society THE ANGLO AMERICAN COMMUNITY HIV/AIDS PARTNERSHIP In October 2003, we announced an ambitious community HIV/AIDS partnership designed to enhance and accelerate the provision of comprehensive HIV/AIDS services in government primary health care clinics. We chose the NGO loveLife as our first strategic partner in this initiative, based on our desire to extend the rollout of their successful National Adolescent Friendly Clinic Initiative (NAFCI) into communities associated with our operations. loveLife has an existing partnership with the National Department of Health in South Africa and is also supported by the Kaiser Family Foundation, the Nelson Mandela Foundation and the Global Fund to fight AIDS, tuberculosis and malaria. The Anglo American Chairman’s Fund is donating R30 million ($4 million) to loveLife over a period of three years. This co-investment with the Global Fund has enabled us to double the reach of the NAFCI initiative into our communities. We have identified seven communities across six provinces of South Africa. All of these are disadvantaged, in both peri-urban and rural settings. Within these communities we have selected 38 government primary health THE POWER OF PARTNERSHIPS partners will provide the infrastructure to care clinics for the initial intervention. We strongly believe that the collective effort ensure long-term sustainability. Together is much bigger than the sum of its parts. By with our other partners we hope to build Our operations will commit considerable working together in partnership, we hope to a force in the fight against HIV/AIDS that time and expertise to working with loveLife build on each other’s strengths and leverage will secure the future for communities far and other partners to help build capacity the initial commitments of a small number beyond our initial commitments. in these public sector primary health care of players to produce a significant multiplier clinics. The overall goal will be to enhance effect. As private sector partners in the the health sector response to HIV/AIDS at community HIV/AIDS initiative, we hope to SUMMARY OF ANGLO AMERICAN community level. The essential elements of contribute business experience, innovation, HIV/AIDS STRATEGY the programme are listed below. efficiency and drive. Our public sector • Pursue HIV prevention programmes with vigour • Conduct voluntary, anonymous, ENHANCING THE HEALTH SECTOR unlinked HIV prevalence surveys at all RESPONSE TO HIV/AIDS AT operations on an annual basis COMMUNITY LEVEL • Building capacity at primary health • Set management targets and create care clinics and improving efficiency an environment for increased uptake of VCT • Ensuring easy access to comprehensive HIV prevention • Implement wellness programmes services for HIV positive employees and set targets for wellness programme • Providing voluntary counselling and enrolment testing • Provide access to antiretroviral • Enhancing care and support for those therapy at company expense when with HIV infection clinically indicated • Preventing mother to child • Extend workplace programmes transmission of HIV Above: Dr Brian Brink (left), Anglo American’s into surrounding communities in • Preparing the ground for early access senior VP health, with Margie Keeton, chief partnership with government, unions, to antiretroviral therapy for those executive of Tshikululu Social Investments NGOs and international donor with AIDS which administers the Anglo American agencies • Paying particular attention to the Chairman’s Fund, and David Harrison, chief • Monitor and evaluate programme special needs of young people. executive of loveLife, at the launch of the outcomes. HIV/AIDS partnership project

Anglo American plc Report to Society 2003 Society 47 CORPORATE SOCIAL INVESTMENT

We recognise that our greatest potential to �� create opportunities for the communities � associated with our operations is to run our business ethically and to observe high social and environmental standards. In developing � � countries there is still a signiﬁcant role for � �� philanthropic programmes which are aligned � with our business and the priorities of our key stakeholders.

In 2003, we contributed some $38.3 �� million (1.5% of pre-tax profit) to charitable causes and community social investment. �� This marked an increase from $28.8 million (0.9% of pre-tax profits) in 2002. The increase is attributable, in part, to exchange rate factors, especially the strength of the South African Rand, since over half of our corporate social investment (CSI) is �� in southern Africa. Youth and education �� are priorities, receiving 24.8% of our �� CSI funding. �� At an international corporate level, priority �� was given to projects which support �� capacity building and sustainable livelihoods or good governance. In the former category we supported SightSavers International’s Further growth in the Fund’s resources in The initial concept for the project projects in Tanzania and Mali, Bees for 2003 enabled R73.5 million ($10 million) to originated in the late 1980s following a Development in making their materials be distributed in 442 grants to organisations strategic decision to allow pensioners and available to communities in Latin America, and projects. The largest proportion of the widows to continue to live in company CARE on projects in Brazil and Zimbabwe and Fund’s support (51%) is to the education houses. The stock of houses for new BookAid’s work in Zambia and Zimbabwe. sector, with 210 grants in 2003 totalling employees therefore diminished. After We also supported a Commonwealth R37,3 million ($5 million). The biggest new consultation with the community the option Business Council anti-corruption project in commitment entered into by the Fund during of a dedicated retirement village was the SADC region, the report of which was 2003 is to the partnership with loveLife in rejected and a Social Responsibility Forum presented at the Commonwealth Heads of support of HIV/AIDS clinics (see page 47). was constituted to examine further the issue Government meeting in Abuja. Within the of home ownership. The introduction in United Kingdom, our support for central The Anglo American Chairman’s Fund was 1997 of the Extension of Security of Tenure London homelessness charities included once again voted the foremost corporate Act made this project a strategic as well grants to St Martin’s in the Fields’ London grant maker, achieving top ranking in six as a social issue. An initial, self-funding, Connection and to Centrepoint which out of seven categories of corporate social project for some 479 houses was accepted enabled 300 newly homeless young people investment in an annual survey of South by the Anglo American Farms (Amfarms) to access safe accommodation. African businesses and NGOs. Board. In the late 1990s, a series of road shows ensured extensive and collaborative Our primary vehicle for charitable HOME OWNERSHIP consultation with all stakeholders. engagement in South Africa is the The majority of social investment is Effectively this interactive process took two Anglo American Chairman’s Fund whose conducted at a local level. Among the years to complete and another 18 months philosophy is to enable people to assume largest such projects undertaken in recent to refine, resulting in a change of scope that greater control over their daily lives. Over years has been the Lanquedoc housing necessitated additional funding. the past decade the Fund has supported project in South Africa. It is a home over 7,800 projects and contributed over ownership scheme at Boschendal wine The lasting legacy of the project will be R500 million ($66 million) to growth and estate, developed in partnership with the wider access to home ownership and a development in South Africa. The Fund community, local authorities and national role model for collaborative residential supports a range of projects, from small government. During 2004, 611 families developments for agricultural workers. grassroots initiatives to much larger (including 79 employees) will receive title to interventions. their existing or newly constructed homes.

48 Anglo American plc Report to Society 2003 Society CHAIRMAN’S FUND totalling R10 million SUPPORTS RURAL ($1.3 million) to match the SCHOOLS Fund’s contributions – a ﬁrst for The Chairman’s Fund has over the Chairman’s Fund. The Fund’s 25 years of experience in technical building experience helping communities in remote has helped improve aspects of rural areas in South Africa build design and delivery that add classrooms to improve the further value to these special learning opportunities for their partnerships. children. The plight of rural schools, where teaching often occurs under trees or in church halls, has been acknowledged by the authorities, but capacity is required to plan and manage effective building projects. Right: Pupils at the Mamosala high school, a beneficiary of the The Chairman’s Fund has learnt Chairman’s Fund rural schools a great deal about the harsh programme in South Africa’s realities of rural schooling and Limpopo province the opportunity to elevate its engagement in this area to Below: Young members of the formal partnerships with community in traditional folk provincial governments held the costume and Mondi Europe prospect of greater impact and executives provide a warm recognition. Two formal public Polish welcome for the visit to private partnerships have been the Frantschach Swiecie plant by established with public funding analysts and fund managers

GOOD CITIZENSHIP IN and equipment, winter footwear POLAND and the opportunity to Community engagement is participate in various sports considered to be a critical and activities in their free time. success factor for Frantschach Swiecie has worked closely Swiecie’s Good Citizenship with the local education office programme. Swiecie is a major and social care office, providing employer in its region and many equipment and training for of its stakeholders operate or football, boxing, canoeing, live in the area. The company athletics and wrestling, recognises that its responsibility sponsoring junior basketball as a corporate citizen is not teams and cheerleaders and only to minimise the adverse financing participation in summer impacts of the business on the camps. Employees are encouraged surrounding community, but to be involved and they arranged also to support the community’s a collection of books, games and development. toys for the children’s common room run by the Association of A social assessment for the towns Unemployed Persons. of Swiecie and Chelmno and their neighbouring villages included Equipment for the local hospital, engagement with employees and the regional mental hospital local community representatives. and the Neurology hospital in Key concerns are unemployment, Bydgoszcz was funded, and poverty, education, crime and Swiecie supported programmes healthcare. Swiecie is focusing to promote the integration of the its involvement on the needs of disabled into the community. disadvantaged younger people and on upgrading local hospital A workshop was held for facilities. suppliers, contractors and customers to discuss our Support for disadvantaged business principles and key young people is provided in the contractors were invited to form of hot meals, schoolbooks participate in community projects.

Anglo American plc Report to Society 2003 Society 49 which require mining companies to beneﬁt local communities, as well as entrenching the Anglo American business principles.

Human resources manager Ricardo Pérez explains that prioritised actions are based on supporting social initiatives originated by employees, promoting a project to develop and certiﬁcate local artisans, local procurement where possible and development of the health facilities and local road infrastructure, with the long-term aim of handing these back to the community.

After consultation and as one of many initiatives, MLdN constructed an elementary school in Los Bagres, a very poor, rural area close to the mine. The new three-roomed elementary school began its activities in the 2002-3 academic year. Sixty students, from kindergarten to grade six, are currently enrolled. In 2004, a further two classrooms will be built to accommodate students up to the seventh grade, thus ensuring that the children are able to complete their primary education close to home. The school also has kitchen and ablution facilities, a sports Above: Karin Ireton, Anglo American group LOMA DE NÍQUEL’S COMMUNITY field and a small garden. MLdN makes an sustainable development manager and PROGRAMMES annual contribution towards salaries and Ricardo Pérez, human resources manager at Loma de Níquel (MLdN) is the only large- social benefits for the three teachers and a Loma de Níquel, spend time in the classroom scale private sector mining operation in labourer. with Noemí de Romero, a teacher at Los Venezuela. During the mine’s development Bagres elementary school, and her pupils in the late 1990s, expectations around With the approval of the regional job creation and contribution to the rural government, the school facilities will be Below: Hope Tyira (second from right), the local community, as well as the nearby made available in the afternoons for adult environmental co-ordinator at Rustenburg towns, were high. The MLdN community education and senior schooling. Platinum Mines’ Union Section with a group engagement plan sets out a strategy to from one of the ten local schools that took promote sustainable development rather In another small rural village, the company part in Anglo Platinum’s environmental than dependency and reliance on short-term developed an internet centre to develop education programme handouts. Core to this strategy was finding computer skills that will enhance education a way of meeting local legal requirements and employment potential.

ENVIRONMENTAL EDUCATION PROGRAMME Rustenburg Platinum Mines’ Union Section has established an environmental education programme for local schools in the nearby Pilanesberg game reserve. The programme includes presentations on basic environmental principles, a group discussion session, a game drive and an environmental project undertaken by each participating school to foster greater environmental awareness and promote activities to minimise environmental impacts.

50 Anglo American plc Report to Society 2003 Society HUMAN RIGHTS AND ETHICS

Our business principles express after we explained that we support to the actions of local ZIMBABWE the Group’s adherence to the prohibit corrupt payments, that management. We have had a long-standing Universal Declaration on Human title to the Kolwezi Tailings presence in Zimbabwe and Rights and our commitment project had never passed to These have included seeking a strong commitment to the to making representations to Anglo American and there had to align the operation’s security welfare of our employees and governments when the rights only been a rephasing of the practices with the Voluntary the communities associated with of employees or communities licence payments attaching Principles on Security and our operations. associated with our operations to the projects, not an overall Human Rights. are abused. Human rights are an reduction, the panel declared Despite reported abuses of important factor in considering the case resolved and removed Under the auspices of Cerrejón, human rights and the challenges the non-financial risks of Anglo American from its an agreement has been reached of working in the country, we investment decisions. list. We have expressed our between the Colombian defence remain a positive influence reservations to the United ministry and the Inter-American around our operations in the Being a long-term investor, Nations Secretary General about Institute for Human Rights. areas of food provision, we can find ourselves with lack of due process, including This provides for training in education and HIV/AIDS immobile assets in a country not providing an opportunity for human rights and international programmes. where the rule of law and misinformation to be corrected. humanitarian law for local human rights are eroded. In security forces. It includes the A dispute arose in respect such circumstances, we have to COLOMBIA development of an operational of ownership of sugar cane assess whether we can continue We have, since February 2002, manual on human rights to delivered to our Hippo Valley to operate in compliance with held a one third interest in the guide all military and police operation for processing. our own business principles and Cerrejón Coal operations in units within Cerrejón’s area of This has been the subject of to consider the impact of our Colombia. The operation has an influence. legal proceedings and protracted decisions on employees and independent management. In negotiation involving the local communities. 2001, a number of households Cerrejón Coal continues to original and resettled farmers. were evicted, through due invest in projects that benefit It is hoped that an equitable We carried out extensive work process of law, to make way for the local population, including settlement will be reached to identify the issues to be mining on the site of the village an investment in developing in 2004. addressed if we are to adhere of Tabaco. small business management to the voluntary principles on skills and educational projects. security and human rights and Owners of all but 18 of An educational resource centre drafted a guidance document on 192 properties had agreed comprising science and computer best practice for security and compensation arrangements. laboratories was built in Fonseca human rights. These 18 cases are still the to serve schools in seven local subject of appeals to establish municipalities, which have a During the year, Anglo American the value of compensation population of 73,000 people. addressed a number of difficult that should be paid. A final issues at local, country and judgement is expected in the APARTHEID LITIGATION international levels. first half of 2004. Cerrejón Coal We are one of many continues to offer compensation international companies named DEMOCRATIC REPUBLIC OF higher than that originally as defendants in some of the THE CONGO awarded by the court and hopes dozen or more class action In September 2002, the United that these issues can be resolved. complaints ﬁled in the United Nations Special Panel on the States over the apartheid illegal exploitation of the natural There has, in parallel, been government and related issues resources of the Democratic a judgment against the local in South Africa. The US courts Republic of the Congo included municipality that it should heard arguments in November Anglo American in a list of 85 provide housing and other 2003 but have yet to rule companies accused of breaching support for some of the Tabaco as to whether these cases the OECD Guidelines for Multi- families. This process has been should come to trial in the National Enterprises. subject to significant delays. United States. The ruling could Cerrejón Coal has, however, be subject to appeal, making The panel only briefed us on its contributed land to support the any conclusive developments concerns in May 2003. These municipality in fulfilling the before 2005 unlikely. The South were allegations that Anglo court ruling. African government has stated American and its joint venture its belief that these matters partner had made ‘inappropriate In relation to human rights would be best resolved in South payments’ to secure the issues arising out of the broader Africa. We believe these cases Kolwezi Tailings project on political/security situation are without merit and intend to favourable terms. However, in Colombia, we have given contest them vigorously.

Anglo American plc Annual Review 2003 Anglo American plc Report to Society 2003 Society 51 ECONOMIC CONTRIBUTION

52 Anglo American plc Report to Society 2003 Economic Contribution ADDING ECONOMIC VALUE

The economic pillar is central to sustainable 2002 and 2003 (see graph) are principally �� development. Yet sometimes a company’s the result of acquisitions made in Europe �� economic contribution is equated with (including Russia) and South America, but financial profitability alone. Profitability is also illustrate the continuing commitment to �� essential and is seen as a measure of the the African region. Please refer to the Anglo �� efficiency with which our financial capital is American Report to Society 2002 and the used. However, our economic contribution value added table on our website for further �� extends far beyond the profits we generate details. Value added is distributed amongst a �� and can be divided into number of groups: �� • value added in the course of production INVESTORS �� and the wider effects of these activities Dividends and interest on loans represent �� (for example, through payments to returns to investors and ensure that suppliers and multiplier effects) and financial capital is available to us. Over �

through investments in staff development, three quarters of our shareholders are �� technology transfer and investment �� resident in Europe (45%) and South Africa �� • the value to society of our products, (32%) and the majority of shares is held which are used in the manufacture of by institutions, including pension and goods that underpin our way of life and insurance funds. for which there are few ready substitutes. EMPLOYEES Value added consists of the difference Well-paid employment is one of the biggest Multinational companies play a critical role between the value we receive for the challenges for developing countries. We in transferring technology to developing sale of our products and the cost of employ 135,000 people in Africa and countries and their citizens. Training in the the materials required for production. It 7,000 in South America out of a total use and maintenance of technologically therefore represents a measure of the value employment of 193,000 people in both advanced processes and equipment is thus �� which we have added to these bought-in managed operations and independently vital to embed technological understanding. �� factors through the process of production. managed subsidiaries. The distribution of Our new zinc mine and refinery at Skorpion � Group value added totalled $7.8 billion for benefits graph shows payments for wages in Namibia and our new phosphate plant at 2003. We have followed the established and salaries, social security costs, post- Catalão in Brazil illustrate the way in which � �� retirement healthcare costs and pension practice of including depreciation in our extractive industry operations can build �� calculation of the value added, which plan costs. Further value is added through business and technological capacities in a allows for a direct comparison with the training, an investment in human capital that developing country. gross domestic product of the countries in benefits both the employer and employees �� which we are located. The changes in the by increasing their scope to find alternative �� regional distribution of value added between meaningful employment.

��

�� Left: Adding economic value to the societies in which we operate is central to our approach to sustainable development. This is not only through the processing of natural resources but �� also through the multiplier effects of �� wages and taxes, payments to �� governments and suppliers and returns �� to investors ��

Anglo American plc Report to Society 2003 Economic Contribution 53 GOVERNMENTS �� Our activities resulted in tax payments �� of $1,743 million in 2003, of which �� approximately 45% was to governments of �� developing countries. The total includes �� all taxes, of which the most significant are �� company taxes, payments for licences and �� permits, royalties, employee taxes and social �� security contributions, and customs duties. �� It is therefore a broader account of payments �� than that indicated by the payments of �� company tax alone shown in the pie chart. �� These taxes make an important contribution �� to government revenue in countries where �� we have a significant presence. �� PAYMENTS TO SUPPLIERS �� Current payments to suppliers amounted �� to $11.2 billion in 2003. The increase in LARGEST TAX AND RELATED payments to suppliers in Africa reflects PAYMENTS TO GOVERNMENTS both the stronger Rand and the investments $m being made principally at Anglo Platinum and Anglo Base Metals. Natural resource South Africa 606 industries tend to be very capital intensive and many supplier payments are made for UK 383 sophisticated equipment and productive Australia 231 inputs such as front-end loaders, steel Russia 94 cables, information systems and electrical �� power. Nevertheless, a significant amount Brazil 84 �� of procurement can be sourced locally or France 54 � within the country of operation. We actively encourage the formation and development Germany 35 � �� of local suppliers to our operations thereby Chile 34 increasing the proportion of value that �� is retained in the local economy. The Canada 25 development of local productive capacity Mali 24 �� represents one of the most enduring ways �� in which our operations can contribute to Others 173 sustainable development at the local level. Total 1,743 Some of our activities in this area are �� detailed in the Society section of this report (see pages 40-41). �� INVESTMENT �� In addition to the economic benefits created � �� through the process of adding value, we �� spent over $3 billion of new capital in order �� to continue and expand this process. The � �� pie chart shows the heavy expenditure of �� capital in Africa, principally on the Anglo Platinum expansion programme. Suppliers �� benefit from this spending over and above �� the $11.2 billion for operating expenses.

��

54 Anglo American plc Report to Society 2003 Economic Contribution TECHNOLOGY TRANSFER N$12,500 ($1,650) per AND SKILLS DEVELOPMENT employee and represents 11% AT SKORPION ZINC IN of wage costs. It includes: NAMIBIA On reaching full production • 22 Namibian students in 2004, the recently studying engineering at commissioned Skorpion Zinc African universities to mine and refinery in Namibia provide a feedstock of top will contribute some 4% to local engineers to replace the Namibian gross domestic expatriates (who currently product. Namibia is an arid number 58 out of a total country with a population of employee workforce of 600) only 1.7 million and mineral • 26 vocational scholarships resources constitute its for artisans at the Namibian principal source of economic Institute for Mining and development opportunities. Technology. It is expected The refinery employs state- that this level of training of-the-art technologies for expenditure will be maintained processing ore that is not for 15 years amenable to conventional processing techniques. This • Thorough theoretical and technology presents significant practical technical training for human resource challenges in all operators and induction into a country with a small pool of safety, health, environmental technically qualified people. and industrial relations The establishment of a corps of procedures. A 1:1500 scale skilled mining and metallurgical model of the plant was built professionals and artisans for training purposes and will be key to unlocking the groups of operators were GOIÁS PHOSPHATE Copebrás were provided with mineral potential of Namibia sent to plants in South Africa PROCESSING PLANT 122,153 hours of theoretical and for increasing the benefits and Belgium for good practice CONTRIBUTES TO and practical training and to the local and national operational exposure REGIONAL ECONOMY 22,618 hours of safety training. economies. Skorpion has In 2003, Anglo Industrial A chemical processes operators’ established a comprehensive • Training for unskilled Minerals opened a new course was sponsored through training programme to meet individuals in activities such phosphate plant at Catalão in the Brazilian professional the challenge. The 2003 as brick making, woodwork, Brazil’s Goiás State to cater for development institution, SENAI, training budget of N$7.5 million construction, welding and the growing domestic demand to raise technical competencies ($1 million) amounts to sewing. for phosphate fertilisers. In to the required levels. Of the Below: The electromechanical Above: Skorpion Zinc production addition to taxes and direct 160 operators that qualified, laboratory at the SENAI managers Terence van Zyl and benefits to the regional economy, 40 are employees and 120 are training institution in Catalão, Siyanda Khanyeze (left front) the project has created direct from the local community. a Copebrás social investment with a group of trainee operators and indirect employment, raised project proudly displaying the first metal educational standards and been Educational tours of the plant produced in the training plant a catalyst for investment in the are encouraged, and over local community. 1,000 visitors have toured the operation since its opening. The project created jobs for 1,300 indirect employees plus Social investment programmes 140 engineers and technicians which were financed by BNDES, during the two-year construction the National Development Bank, and assembly period. A further were undertaken at a cost of 228 employees were hired full- $450,000. These included time and approximately 700 the construction of a day-care third-party jobs were created. centre with capacity for 350 children, an integrated women’s The local work force is poorly health medical centre, and a educated, especially in the 12,400m2 sports and leisure technical skills required for the centre. Equipment was provided efficient operation of a modern for nursing, accountancy and minerals processing plant. As a electromechanical courses result, in addition to the Back to at educational facilities and School programme (see page 21), assistance was given to an the staff and contractors at old-age centre.

Anglo American plc Report to SocietyAnglo 2003 American plcSection Report titleto Society 2003 Economic Contribution 55 BASIS OF REPORTING

The basis we use to report our SHE • Environmental incidents: improved • The lack of reliable and accurate performance indicators, economic awareness of incident reporting and methodologies for measuring methane indicators, corporate social investment greater clariﬁcation of the deﬁnition emissions from methane venting at statistics and the operational dimensions has resulted in better capture of Moura in Australia, which impacts the of social programmes is outlined on page 5 environmental incidents in 2003 completeness of the Group’s reported of this report. We include performance data compared to previous years methane emissions. This is estimated for managed operations from the date of as being 520,000 tonnes

acquisition, or up to the date of divestment, • CO2 emissions from processes: CO2 unless otherwise stated. The ﬁnancial data emissions from biomass sources have • It is an ongoing challenge to obtain outlined on the inside front cover of this been excluded in 2003 (please refer complete and accurate contractor safety report is derived from our audited Annual to page 25 for our explanation). This information. This has a minor impact on Report and Accounts. results in a 1.2 million tonnes decrease the accuracy of the Group’s LTIFR, but

in reported CO2 emissions from processes not on the trends in safety performance Our managed operations are those in at Mondi Kraft.

which Anglo American has full authority • SO2 emissions data are obtained from to introduce, implement and control the RESTATEMENT both mass balances and measurements.

Group’s SHE Policy, Management and During 2003, the following events led to Group reported SO2 emissions exclude Business Principles. The following were restatement of the 2002 data: emissions from fossil fuels. These will exceptions to the basis of reporting during be captured for 2004 onwards 2003 as they only reported safety data: • an error in the scope of reporting for

Mondi Packaging in the United Kingdom, Frantschach Czech has resulted in an • CO2 emissions from processes occurring Ireland and France; Mondi Recycling; increase of 18 million m3 of water used at Mantos Blancos, Los Bronces and and Scaw Moly-Cop in Zimbabwe, the for primary activities El Soldado operations are currently Philippines and Mexico. They will report excluded from the data. These emissions environmental data from 2004. • data errors in capturing environmental occur as a result of the consumption incidents by Scaw Metals resulted in a of sulphuric acid in the heap leaching The exclusion of data from these operations reduction of 5 level 2 incidents process and are unlikely to represent is unlikely to impact significantly on the a material omission from the Group’s presentation of the Group’s environmental • minor improvements in calculation data reported here. performance. A list of our managed methodologies (details are contained operations is found in the data tables in the footnotes of the data tables on at the back of the report. We report pages 58-61). performance data from managed operations on a 100% basis, even where our financial LIMITATIONS interest is less. Over time, our SHE and Business Principles management and information systems PRESENTATION have evolved as we continue to improve SHE data are collected using our corporate the reliability and comparability of our SHE database. The tools and guidelines performance data. However, there are still developed by the WRI/WBCSD Greenhouse a number of limitations that we are working Gas Protocol have been used as the basis to improve. These include: for reporting the Group’s greenhouse gas emissions. Please refer to our Glossary on • A number of our mine sites have multiple pages 62-3 and to references in the body water sources and significant recycling. of the report for further information on Water use is therefore not always specific definitions. reported completely or accurately

COMPARABILITY • The lack of reliable and accurate The comparability of our SHE data is methodologies for measuring methane affected by changes to the portfolio of emissions from our open cast mines in managed operations, by changes in the South Africa, which limits the accuracy of methodology for determining certain the Group’s reported methane emissions data and improvements in data collection

systems, such as more consistent • CO2 emissions from coal seam venting interpretation of deﬁnitions and use of and spontaneous combustion from our better estimates. Where signiﬁcant, these mines in South Africa are not reported impacts are discussed within the main body due to the lack of reliable and accurate of the report under the respective SHE methodologies, which impacts the performance indicators. In summary, the completeness of the Group’s reported

performance indicators impacted were: CO2 emissions from processes

56 Anglo American plc Report to Society 2003 Basis of Reporting INDEPENDENT ASSURANCE

We asked KPMG to select and review certain of our 2003 Group safety and environmental performance indicators and again they were able to provide an unqualiﬁed conclusion. This is the fourth year that KPMG have been asked to do this review and recommendations arising out of this annual assurance process have helped us in our journey towards sustainable development.

KPMG selected the following Group performance indicators to review:

• Fatal injuries

• Lost Time Injury Frequency Rate

• CO2 emissions from processes, fossil fuels and purchased electricity

• Total energy used

• SO2 emissions from processes

• Environmental incidents (Levels 1, 2 and 3)

• Water used for primary activities

In making this selection, KPMG considered our key SHE risks, the indicators most relevant to management and stakeholder decision-making processes and used their experience of our SHE reporting systems and processes.

Their initial selection also included our data on methane emissions and sulphur dioxide emissions from fossil fuels. However, as we are in the process of developing a measurement methodology for methane emissions from open cast coal mines in South Africa, they were not in a position to review these. As the majority of our operations were unable to provide full data on SO2 emissions from the combustion of fossil fuels, KPMG were also unable to review these.

KPMG selected nine sites for review based on a range of risks and issues that inﬂuence reporting in a geographically and operationally diverse organisation like ours, and they met with our divisional and Group SHE management on a regular basis throughout the year.

We also asked KPMG to review the reliability of the assertion we have made regarding our Community Engagement Plan (CEP) target to have CEPs in place at over 90% of our signiﬁcant operations by the end of 2003.

FULL ASSURANCE REPORT KPMG’s independent assurance report, which outlines what they have been asked to do by us, our respective responsibilities, the basis of their work, the scope of their reviews, the work they performed and the conclusions they reach, can be found on our website at www.angloamerican.co.uk/susdev/reports.

Anglo American plc Report to Society 2003 Independent Assurance 57 DATA FOR MANAGED COMPANIES FOR THE YEAR ENDED 31 DECEMBER 2003

CO2 from CO2 from Water used Tonnes Coal mine processes and electricity Total energy Land utilised by for primary mined/ methane, a b c d fossil fuels purchased used operations activities tonnes milled CO2 equivalent ’000 ’000 ’000 ’000 ’000 Anglo Platinum tonnes tonnes GJ ha m3 tonnes Bafokeng Rasimone Platinum Mine 5 234 1,021 950 2,160 2,481 Lebowa Platinum Mine 4 173 762 282 3,628 1,535 Potgietersrust Platinums 74 268 2,080 1,847 3,334 4,465 Precious Metals Reﬁners 1 46 196 32 165 na RPM Amandelbult Section 17 566 2,518 825 8,177 6,956 RPM Rustenburg Section 12 1,105 4,631 2,194 8,157 12,227 RPM Union Section 36 635 2,992 1,870 3,993 5,882 RPM Waterval Smelter 96 656 3,728 57 727 na Polokwane Smelter 22 197 1,033 728 261 na Rustenburg Base Metals Reﬁners 124 189 2,076 145 520 na Totals for 2003 390 4,073 21,052 8,934 31,138 33,545 Totals for 2002 313 3,565 18,095 8,113 31,928 30,865 ’000 Anglo Coal tonnes Anglo Coal Australia Callide 54 71 905 2,121 662 8,648 17 Dartbrook 293 69 305 734 801 4,094 426 Drayton 61 29 740 1,089 462 5,043 9 German Creek 47 173 848 4,062 3,606 6,232 1,670 Moranbah North 12 89 358 641 1,324 4,714 173 Moura 66 154 1,352 6,121 867 6,962 0f Anglo Coal South Africa Bank 2 68 310 846 560 4,781 94 Goedehoop 4 149 656 1,233 818 7,946 169 Greenside 3 44 226 394 565 4,747 26 Kleinkopje 37 113 961 2,377 204 7,662 15 Landau 10 69 412 1,388 166 5,721 11 Kriel 14 79 514 2,027 561 11,080 80 New Denmark 4 76 366 3,426 334 4,317 192 New Vaal 42 113 1,030 2,146 231 17,059 33 Totals for 2003 650 1,298 8,985 28,606 11,162 99,008 2,915 Totals for 2002 601 1,071 7,691 21,059 13,327 86,664 3,090

a CO2 emissions from processes and fossil fuels consumed are calculated using the WBCSD Greenhouse Gas Protocol calculation tools, and do not include emissions from purchased electricity. b CO2 emissions from purchased electricity are calculated using country-specific factors for national grid electricity. c Total energy used is calculated from electricity purchased and fossil fuels consumed. d For Anglo Platinum and Anglo Base Metals figures are tonnes milled; for Anglo Coal figures are tonnes mined. e These data are not the same as reported in 2002 due to data refinements during 2003. f Emissions are believed to be approximately 520,000 tonnes. However, data collected are subject to material error and will be refined in 2004. na Not applicable * Not available NOTE: In some instances the exclusion of data from minor contributors will result in the totals not being equal to the sum of the listed units. On page 30, the total for water used for primary activities includes head and regional offices.

58 Anglo American plc Report to Society 2003 Data Additional tables, including our greenhouse gas inventory and our GRI index, are available on our website www.angloamerican.co.uk/susdev/reports

CO2 from CO2 from Total processes and electricity energy Land utilised Water used for Tonnes mined/ a b c d fossil fuels purchased used by operations primary activities tonnes milled ’000 ’000 ’000 ’000 ’000 Anglo Base Metals tonnes tonnes GJ ha m3 tonnes Mantos Blancos 74 80 1,893 2,081 3,713 8,762 Mantoverde 49 58 1,309 722 2,656 9,024 El Soldado 42 80 1,469 904 3,335 7,112 Los Bronces 84 211 3,518 4,700 21,728 19,365 Chagres 47 43 1,120 40 1,289 529 Bindura Nickel Corporation 24 123 765 869 847 850 Codemin 93 10 2,372 1,142 2,260 564 Loma de Níquel 464 133 9,524 240 2,652 1,211 Catalão 2 1 122 205 3,743 559 Namakwa Sands 148 540 2,900 2,036 7,461e 14,988 Hudson Bay 209 11 6,162 3,396 9,207 2,129 Skorpion 9 263 1,187 441 1,859 4,638 Black Mountain 8 130 629 929 2,143 1,445 Lisheen 4 89 500 406 36 1,520 Totals for 2003 1,256 1,771 33,472 18,111 62,935 72,698 Totals for 2002 1,571 2,391 35,386 31,598 70,275 49,115

CO2 from CO2 from Total Land Water used processes and electricity energy utilised by for primary fossil fuelsa purchasedb usedc operations activities

’000 ’000 ’000 ’000 Anglo Industrial Minerals tonnes tonnes GJ ha m3 Copebrás 66 6 1,760 135 6,245 Steetley Iberia 11 5 191 80 4,152 Tarmac (Central Europe) 10 23 298 1,480 336 Tarmac (China) 16 3 222 9 55 Tarmac (France) 6 2 155 121 708 Tarmac (Middle East) 30 6 429 75 262 Tarmac UK 1,209 166 11,076 9,066 22,733 Totals for 2003 1,348 210 14,131 10,966 34,490 Totals for 2002 1,311f 212 13,564f 11,426 42,471

Anglo Ferrous Metals Highveld Steel 3,439 2,821 39,834 1,870 8,705 Scaw Group 833 728 14,488 164 1,971 Zimbabwe Alloys 58 115 1,060 962 174 Totals for year 2003 4,330 3,664 55,383 2,996 10,850 Totals for year 2002 4.696f 3,971 60,777f 2,849 11,188

Anglo Industries Amfarms 0 2 9 0 24 Boart Longyear 58 44 1,011 45 352 Hippo Valley 11 10 198 5,221 177,957 Totals for 2003 70 57 1,218 5,266 178,333 Totals for 2002 11 30 416 71 212 a CO2 emissions from processes and fossil fuels consumed are calculated using the WBCSD Greenhouse Gas Protocol calculation tools, and do not include emissions from purchased electricity. b CO2 emissions from purchased electricity are calculated using country-specific factors for national grid electricity. c Total energy used is calculated from electricity purchased and fossil fuels consumed. d For Anglo Base Metals figures are tonnes milled; for Namakwa Sands, Skorpion and Catalão figures are tonnes mined. e Water used for primary activities at Namakwa Sands included 67% of sea water. f These data are not the same as reported in 2002 due to data refinements during 2003. na Not applicable * Not available NOTE: In some instances the exclusion of data from minor contributors will result in the totals not being equal to the sum of the listed units. On page 30, the total for water used for primary activities includes head and regional offices.

Anglo American plc Report to Society 2003 Data 59 DATA FOR MANAGED COMPANIES FOR THE YEAR ENDED 31 DECEMBER 2003

CO2 from CO2 from Total Raw Water used processes and electricity energy material for primary Particulate fossil fuelsa purchasedb usedc used activities emissions

’000 ’000 ’000 ’000 ’000 Anglo Paper and Packaging tonnes tonnes GJ tonnes m3 tonnes Mondi Limited Kraft Felixton 81 56 1,094 158 2,139 0 Piet Retief 130 74 1,673 165 903 353 Richards Bay 581 215 7,347 2,000 31,141 576 Silvacel 1 11 59 2,035 170 n/a Paper Merebank 441 862 8,419 920 12,854 26 Forests 0 7 31 46 32 15 Mining Supplies 2 3 32 488 10 n/a Mondipak 28 28 490 201 220 0 Cartonboard Springs 128 103 1,783 176 1,642 130

Mondi Europe

Mondi Packaging Europe 11 6 159 123 86 99

Neusiedler

Dunaújváros (Hungary) 0 24 187 68 1,441 0 Szolnok (Hungary) 87 27 1,752 100 2,747 0 Ybbstal (Austria) 175 21 3,508 443 7,412 0 Hadera (Israel) 0 55 249 96 757 n/a RuÏomberok (Slovakia) 336 12 6,119 937 27,017 166 Syktyvkar (Russia) 1,632 0 28,908 1,194 143,898 2,284

Frantschach Swiecie

Pulp and Paper Sweden (Dynas) 1 7 616 0 16,944 0 Austria (Patria) 25 3 360 412 29,579 82 Czech (Sepap) 490 108 6,051 1,408 39,773 108 Swiecie 665 132 7,742 1,716 21,427 342 Totals for 2003 4,815 1,756 76,580 12,685 340,190 4,181 Totals for 2002 5,222 1,904 64,081 11,311 240,168 3,522

60 Anglo American plc Report to Society 2003 Data Additional tables, including our greenhouse gas inventory and our GRI index, are available on our website www.angloamerican.co.uk/susdev/reports

Solid waste Waste water COD in waste AOX in waste TSS in waste Production for Production for generated discharged water water water 2003a 2002a ’000 ’000 ’000 Anglo Paper and Packaging (continued) tonnes m3 tonnes tonnes tonnes units units Mondi Limited Kraft Felixton 74,268 1,670 40,149 n/a 8,423 102 102 Piet Retief 12,864 696 3,497 na 822 129 124 Richards Bay 71,143 26,563 37,917 102 7,833 595 535 Silvacel 23,704 141 n/a n/a n/a 2,122 1,648 Paper Merebank 180,113 11,263 9,868 n/a 1,112 507 518 Forests 0 0 0 n/a 0 56 127 Mining Supplies 468 n/a n/a n/a n/a 159 143 Mondipak 2,218 162 306 n/a n/a 298 300 Cartonboard Springs 26,790 1,221 2,631 n/a 86 139 132

Mondi Europe

Mondi Packaging Europe 158 57 0 0 0 153 142

Neusiedler

Dunaújváros (Hungary) 280 1,444 1,646 0 1,045 85 81 Szolnok (Hungary) 2,933 2,134 1,280 0 240 125 118 Ybbstal (Austria) 416 5,408 2,772 0 234 378 393 Hadera (Israel) * 771 928 0 2,016 126 122 RuÏomberok (Slovakia) 27,594 27,007 3,513 * 259 547 656 Syktyvkar (Russia) 54,832 77,621 12,561 * 1,025 1,371 719

Frantschach Swiecie

Pulp and Paper Sweden (Dynas) 0 11,403 3,771 0 712 185 196 Austria (Patria) 4,919 37,463 346 0 66 263 254 Czech (Sepap) 17,579 34,001 4,064 17 736 421 302 Swiecie 0 17,591 1,437 0 408 737 690 Totals for 2003 500,279 256,616 126,686 119 25,017 Totals for 2002 467,251 188,313 122,191 431 25,898

Land Total Total under land grasslands company area and wetlands charge planted area

Anglo Paper and Packaging (continued) ha ha ha South Africa and Europe Totals for 2003 516,252 293,994 102,410 Totals for 2002 538,980 319,873 85,446

a Products are as follows: Richards Bay – pulp and packaging papers (tonnes); Felixton and Piet Retief – corrugating papers (tonnes). Silvacel – wood chips (tonnes); Merebank - graphic papers (tonnes); Mining Supplies – wood chips and mining timber (tonnes). Springs – packaging board (tonnes). Forests – lumber (m3) and woodchips (tonnes ); Mondipak - corrugated boxes (1000 m2). Mondi Packaging Poland - corrugated packaging (1000 m2); Neusiedler – market pulp, graphic and packaging papers (tonnes); Frantschach – pulp, and packaging papers (tonnes). na Not applicable * Not available NOTE: In some instances the exclusion of data from minor contributors will result in the totals not being equal to the sum of the listed units. On page 30, the total for water used for primary activities includes head and regional ofﬁces.

Anglo American plc Report to Society 2003 Data 61 GLOSSARY

TERM DESCRIPTION ABET Adult basic education and training AIDS Acquired Immune Deﬁciency Syndrome ART Antiretroviral therapy BAP Biodiversity action plan BBS Behaviour-based safety CBO Community-based organisation CDM Clean development mechanism

CH4 Methane COD Total quantity of chemical oxygen demand

CO2 emissions from fossil fuels Carbon dioxide emissions calculated by applying conversion factors to fuel usage volumes

CO2 emissions from electricity Calculated quantity of carbon dioxide emitted in the generation of electricity, which is subsequently purchased by a business unit. Country speciﬁc conversion factors are used in the calculation

CO2 emissions from processes Carbon dioxide emissions from point or fugitive sources, excluding: • carbon dioxide from coal seam gas venting and spontaneous combustion from Anglo Coal South Africa • carbon dioxide from biomass sources relevant to Paper and Packaging • carbon dioxide from the consumption of sulphuric acid in the leaching process relevant to Base Metals reﬁning processes

CO2(e) Carbon dioxide equivalents, which enable the comparison of the impact of various greenhouse gases using CO2 as a benchmark, thereby facilitating impact assessment and trading Contractor A contractor is any non-Anglo American person who is on Anglo American premises under contract for business purposes or anyone providing materials, personnel or services that directly benefit Anglo and relate to a contract or sub-contract Controlled activities Activities for which the managed operating company can set SHE standards and directly supervise and reinforce their application CSLF Carbon Sequestration and Leadership Forum dB(A) Decibels on the A-weighting scale, a frequency-weighted noise unit widely used for traffic and industrial noise measurement. The A-weighting scale corresponds approximately to the frequency response of the ear and thus correlates well with loudness EBMS Electronic business management system EITI Extractive Industries Transparency Initiative Environmental incidents Environmental incidents are classified as either: • Level 1: minor impact, short-term effect • Level 2: moderate impact, medium-term effect • Level 3: significant impact, extensive or long-term effect Fatal injury The death of an employee or contractor resulting from a work-related injury FBO Faith-based organisation FIETA Forestry industry education and training authority FSC Forest Stewardship Council GBC Global Business Coalition on HIV/AIDS, an NGO dedicated to enhancing the business response to HIV/AIDS GHG Greenhouse gas GRI Global Reporting Initiative HAVS Hand/arm vibration syndrome HIV Human Immunodeficiency Virus Hours worked Total number of hours worked by employees, including overtime and training, excluding leave, sickness and other absences. Includes the total number of contractor hours worked on-site during the year ISO 9001 A quality management systems standard published by the International Standards Organisation

62 Anglo American plc Report to Society 2003 Glossary TERM DESCRIPTION ISO 14001 An environmental management systems standard published by the International Standards Organisation ICMM International Council on Mining and Metals ISRS International Safety Rating System IUCN World Conservation Union Lost-Time Injury Any occupational injury which renders the person unable to perform his/her regular duties for (LTI) one full shift or more on the day following the day on which the injury was incurred, whether a scheduled work day or not Lost-Time Injury Frequency Rate (LTIFR) The number of lost-time injuries per 200,000 hours worked Managed companies Companies in which Anglo American has management control. These companies are individually responsible and accountable for managing SHE matters associated with their operations Methane emissions Quantity of methane generated and emitted to atmosphere from point sources and fugitive emissions, as a result of coal mining activities NGO Non-government organisation NIHL Noise-induced hearing loss NOSA The international NOSA integrated 5-star system provides an auditing and certiﬁcation service in occupational health and safety risk management. Star ratings, awarded according to an operation’s level of compliance with NOSA standards, range from 1 (fair) to 5 (excellent) NOSCAR NOSA’s ‘Oscar’, or top award, judged annually from the ranks of the best performers in industry and mining. These awards are made to NOSA graded companies with excellent occupational SHE standards that have achieved at least 95% of the NOSA 5-star system objectives

NOx Nitrogen oxides OEL Occupational exposure limit OHSAS 18001 Occupational health and safety assessment series (speciﬁcations for occupational health and safety management systems) OTTO Zero tolerance towards unsafe working practices and target zero for fatal injuries Restricted Work Case (RWC) An occupational injury which renders the person able to return to work but unable to carry out his/her regular duties (light duty or light work) SAHRA South African Heritage Resources Agency SEAT Socio-economic assessment toolbox SDCEA South Durban Community Environmental Alliance SKEP Succulent Karoo Ecosystem Programme SHE Safety, health and environment SHEQ Safety, health, environment and quality

SO2 emissions from fossil fuels Sulphur dioxide emissions from the combustion of fossil fuels

SO2 emissions from processes Sulphur dioxide emissions from point sources or fugitive emissions Total energy used Calculated from electricity purchased, biomass, charcoal and fossil fuels consumed VCT Voluntary counselling and testing for HIV Water used for primary activities Total new or make-up water entering the operation and used for the operation’s primary activities Primary activities are those in which the operation engages to produce its product(s) and include dust suppression within the operational area WEHAB Water, energy, health, agriculture and biodiversity, the focus areas that emerged from the World Summit on Sustainable Development WHO World Health Organisation Work-related incident Work-related incidents from controlled activities are reported. An incident is considered work- related if an event or exposure in the work environment caused or contributed to the incident in any way. The work environment includes the employer’s premises and any other locations where employees go to perform work-related activities in the interest of the employer

Anglo American plc Report to Society 2003 Glossary 63 REGISTERED AND HEAD OFFICE OTHER ANGLO AMERICAN PUBLICATIONS Anglo American plc 2003 Investing in 20 Carlton House Terrace Annual Report the future: London SW1Y 5AN, United Kingdom Black Economic Telephone: +44 (0)20 7698 8888 Empowerment Fax: +44 (0)20 7698 8500 Registered number 3564138 Website: www.angloamerican.co.uk

OTHER SAFETY, HEALTH AND ENVIRONMENT REPORTS 2003 Good Neighbours: PUBLISHED BY MANAGED GROUP COMPANIES Annual Review Our work with Anglo American Exploration Safety, Health communities and Environment Report 2003 Anglo Coal Australia Safety, Health, Environment and Community Report 2003 Anglo Coal South Africa Sustainable Development Report 2003 AngloGold Report to Society 2003 Anglo Platinum Sustainable Development Report 2003 Corporate Good Citizenship: Boart Longyear Safety, Health and Environment Annual Report 2003 Social Our Business Mondi Forests Sustainable Development Report 2003 Investment Principles Mondi Kraft Sustainable Development Report 2003 in South Africa Mondi Packaging Europe Safety, Health and Environment Report 2003 Mondi Paper Sustainability Report 2003 Namakwa Sands Footprint 2003 Neusiedler Environmental Report 2003 AIDS crisis in Optima Scaw Metals Group Safety, Health, Environment, Employment southern Africa Anglo American’s and Communities Report 2003 current affairs Tarmac Safety, Health, Environment and Social Report 2003 journal If you wish to receive copies of Anglo American’s publications, please write to:

Investor and Corporate Affairs Department Anglo American plc Chairman’s

20 Carlton House Terrace Fund Review London SW1Y 5AN 2003 United Kingdom

Alternatively, publications can be ordered online at: http://www.angloamerican.co.uk/investor/reqreport.asp

USEFUL WEBSITES Anglo American http://www.angloamerican.co.uk/susdev/reports GBC http://www.businessﬁghtsaids.org GRI http://www.globalreporting.org ICMM http://www.icmm.com IUCN http://www.iucn.org UNAIDS http://www.unaids.org UNEP/WCMC http://www.proteus.unep.wcmc.org UNFCCC http://www.unfccc.int WBCSD http://www.wbcsd.org WHO http://www.who.int

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