ANGLO AMERICAN PLATINUM A PRECIOUS SUSTAINABLE DEVELOPMENT REPORT METAL FOR 2011 A PRECIOUS PLANET CONTENTS 01 Overview 02 CEO’s message 06 2011 Performance against targets Operations and products 10 Vision and values 12 Our approach to reporting 20 Material issues 24 Strategy 27 Governance Principles of corporate governance and structures 29 Awards Waterval Smelter ACP Plant 30 Disclosure of management approach 32 Stakeholder engagement 35 Regulation and mineral legislation 40 Environment 44 Energy Climate change 50 Water Air quality 62 Land 64 Waste Biodiversity 69 Complaints and incidents Bucket and Bowl project, Mogalakwena 71 Compliance 76 People Safety Health 94 People development 102 People’s rights 110 Society 112 Economic contribution Community engagement and development 132 Supply chain and procurement Market development and beneficiation Thlabane West Primary School 142 Key performance information 144 Our stakeholders 153 Environmental performance 155 Health performance 156 Safety performance This relates to a section containing material issues Employment performance 160 Economic performance 162 Joint-venture committees 164 Glossary of terms KEY FEATURES ä5ELOOLRQFRPPXQLW\HPSRZHUPHQWWUDQVDFWLRQFRPSOHWHG ä5HJUHWWDEO\HPSOR\HHVORVWWKHLUOLYHV ä7RSJHQGHUHPSRZHUHGFRPSDQ\DZDUGUHFHLYHG ä:DWHUFRQVXPSWLRQZDVEHORZWDUJHW OPERATIONAL INDICATORS 2011 2010 % change Tonnes milled 000 tonnes 41,432 42,242 (2) 4E built-up head grade g/t 3.24 3.23 — Equivalent refined Pt ounces1 000 Pt oz 2,410.1 2,484.0 (3) Refined Pt ounce per employee Per annum 32.5 32.7 (1) Cash on-mine costs R/tonne milled 530 472 12 Cash operating costs R/oz refined Pt 12,869 11,336 14 Cost of sales R/oz Pt sold 16,306 14,986 9 REFINED PRODUCTION Platinum (Pt) 000 oz 2,530.1 2,569.9 (2) Palladium (Pd) 000 oz 1,430.7 1,448.5 (1) Rhodium (Rh) 000 oz 337.6 328.9 3 Gold (Au) 000 oz 105.1 81.3 29 PGMs 000 oz 4,887.4 4,936.9 (1) FINANCIAL PERFORMANCE Net sales revenue R million 51,117 46,025 11 Gross profit on metal sales R million 8,555 8,034 6 Headline earnings R million 3,566 4,931 (28) Net debt R million 3,662 4,111 (11) Debt:equity ratio 1:9.5 1:8.3 14 Capital expenditure (including capitalised interest) R million 7,504 7,989 (6) Gross profit margin % 16.7 17.5 (5) Net sales revenue per platinum ounce sold Rand 19,595 18,159 8 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) Employees Number (as at 31 December) 58,240 54,022 8 HDSAs in management % 56 50 11 Fatalities Number 12 850 Lost-time injury-frequency rate Rate/200,000 hrs 1.27 1.17 9 Sulphur dioxide emissions 000 tonnes 18.8 17.8 10 5,991 GHG emissions, CO2 equivalents 000 tonnes 5,612 6 Water used for primary activities Megalitres 31,248 28,874 8 Energy use Terajoules 25,168 24,156 4 Number of Level 3 to 5 environmental incidents Number 0 0 Corporate social investment R million 186.5 118.7 63 1 Mines’ production and purchases of metal in concentrate, secondary metals and other metals converted to equivalent refined production using Anglo American Platinum Limited’s standard smelting and refining recoveries. ANGLO AMERICAN PLATINUM LIMITED 2011 1 OVERVIEW A MESSAGE FROM ANGLO AMERICAN PLATINUM LIMITED’S CEO, NEVILLE NICOLAU DELIVERING ON OUR COMMITMENTS VALUES AND STRATEGY By remaining true to our values and staying focused on our sustainability goals, we are able to deliver our ultimate goal of safe, profitable platinum. The sustainable development (SD) challenges that we encounter are as significant as they are varied, and require considerable effort to overcome. In 2010, we incorporated these priority areas into our overall Company strategy, ie we began to address issues of sustainability at a strategic level. In 2011, we further entrenched SD in our business, in order to achieve competitive advantage for the Company through excellence and innovation in sustainability practices. The key objectives of this SD strategy are the wellness and safety of our employees; the security of the resources we depend on, such as water and electricity; and community and stakeholder engagement. Because this last aspect had proved to be a particularly weak area in the past, we decided that we needed to achieve a fundamental shift in the nature of our engagements with communities and other stakeholders. OUR STAKEHOLDERS This year we enhanced our stakeholder engagement strategy by conducting sessions with a wide range of stakeholders. The process The key objectives of our SD not only allowed stakeholders to voice their opinion about our strategy are the wellness and material issues, but also afforded them the opportunity to articulate safety of our employees; the any concerns they felt needed to be addressed. security of the resources we depend on, such as water and The communities located near our operations are key stakeholders electricity; and community and in our business and we will continue to promote their advancement stakeholder engagement through our corporate social investment projects, particularly those related to education, health and infrastructural development. In 2011, a total of R187 million was spent on these projects. Moreover, we aim to create value not only through our corporate responsibility projects, but also through local procurement and enterprise development initiatives. 2 ANGLO AMERICAN PLATINUM LIMITED 2011 Overview Believing that it is important for our host communities to benefit We view BEE as an important requirement for sustainable growth from the mining activities in their area, in 2011 we embarked on a and social development in South Africa, and are devoted to brand new initiative, Project Alchemy. participating in the country’s transformation and development. In the last 11 years we have concluded 12 major BEE transactions. Project Alchemy For some time, Amplats has been exploring innovative ways of Similarly, we have pushed for the increased participation of women substantially enhancing the benefits that accrue to our host in mining. In 2011, a total of 12% of our employees were women, communities and key labour-sending areas. The Company’s compared with 10.5% in 2010. commitment to community welfare has now been greatly broadened and extended through the implementation of Project Alchemy, a Safety black economic empowerment (BEE) community equity-ownership Another major challenge has been and continues to be the safety of transaction worth R3.5 billion. The project is set to provide our employees. My biggest disappointment in 2011 was that we did beneficiary communities with shareholder rights by placing shares in not make more significant progress in terms of our safety community-led structures. It is also intended to ensure the social performance. Regrettably, 12 employees lost their lives during the development and sustainability of communities: firstly by positioning year as a result of work-related incidents. On 3 November we halted all them as partners in the delivery of sustainable solutions; and our operations and assembled all our employees in order to secondly by providing them with the skills they need to become and remember colleagues who have lost their lives at work and to highlight remain self-reliant. the importance of work safety. This gesture of solidarity and of respect for the people we have lost also marked the beginning of our “Zero We believe that Project Alchemy will achieve all the goals which it harm in action” programme. This has been designed to create a safer has been designed to accomplish, thereby setting a new standard in way of working at Amplats; to incorporate safety into the way we broad-based social upliftment. conduct our business; and to build on all the good work that has already been done in terms of Company safety over a number of years. OUR EMPLOYEES We know that success in this regard is possible, as we have We provide jobs for around 51,000 employees and 4,800 witnessed it in our own operations. For example, Khuseleka Mine contractors. In 2011, we were able to house employees and their has achieved over 4 million fatality-free shifts, while Mortimer families through a housing project that forms part of our employer- Smelter has operated for over two years without a lost-time injury. assisted housing scheme – an initiative started in 2010 to facilitate the building of 20,000 houses over a period of 10 years. The project In 2011, our lost-time injury-frequency rate deteriorated to 1.27, is intended to empower and substantially improve the quality of life against a record low of 1.17 the previous year. Gassing and smoke of many employees, by allowing them to become first-time inhalation incidents have resulted in an increase in medical homeowners and to live with their families full-time instead of treatment cases, and this has in turn increased our total recordable commuting to distant homes periodically. case frequency rate to 4.06 (compared with 2.08 in 2010). Wellness BLACK ECONOMIC EMPOWERMENT Last year we started on Phase 2 of our programme to silence We view black economic empowerment (BEE) as a key requirement equipment that emits more than 100 dB(A). Sadly, owing to the long for sustainable growth and social development, and remain latency period of the disease, we diagnosed noise-induced hearing committed to participating in South Africa’s transformation. Over the loss (NIHL) in 53 employees. We are persevering with our existing past 11 years we have concluded a number of significant broad- strategy, however, because we believe that it is sound and will based BEE deals. This has enabled us to move beyond the BBBEE ultimately deliver the result that we desire: a milestone of zero NIHL equity targets set by the Government.