Integrated Annual Report 2020
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ANGLO AMERICAN PLATINUM LIMITED INTEGRATED ANNUAL REPORT 2020 REPORT ANNUAL INTEGRATED Integrated annual report 2020 Anglo American Platinum Limited Purpose: re-imagining mining to improve people’s lives We are grounded in our purpose to re-imagine mining to improve people’s lives. We are transforming the very nature of mining for a safer, cleaner, smarter future. We are using more precise technologies, less energy and less water; we are reducing our physical footprint for every ounce of PGM and base metal we produce. We are combining smart innovation with the utmost consideration for our people, their families, local communities, our customers, and the world at large – to better connect precious resources in the ground to all of us who need and value them. Our focus is on our four strategic priorities to deliver the next phase of value creation for stakeholders. – Stimulate new markets and leverage new capabilities – Embed anti-fragility across our business – Maximise value from our core – Be a leader in ESG Refers to other pages in this report Supporting documentation on the website Full annual financial statements (AFS) Full Ore Reserves and Mineral Resources report Environmental, social and governance (ESG) report Notice of annual general meeting www.angloamericanplatinum.com/investors/annual-reporting/2020 Contents 1 Our report 4 Strategy, PGM markets and 99 Our economic contribution in Zimbabwe business model in 2020 1 Approach to reporting 101 Mining and concentrator operations review 2 Reporting principles 38 Strategic priorities 115 Processing operations review 48 Our markets 119 Overview of sustainability capitals 2 Salient features 56 Business model – how we create value 120 Sustainable mining plan summary 5 Group performance 60 Managing our trade-offs for long-term value 126 Ore Reserves and Mineral Resources review 6 Key contributions to Covid-19 relief 62 Adding value to South Africa’s economy 133 Remuneration report 8 Operational footprint 64 Our stakeholders 10 Our differentiated value proposition 6 Company information 70 Our material issues 3 Business context 74 Our approach to risk and opportunity 151 Analysis of shareholders management 152 Shareholders’ diary 14 Chairman’s letter 152 Administration 17 Chief executive’s review 5 Performance review 22 Board of directors 7 Appendix 86 Financial review 24 Our governance universe and framework 97 Tax contribution through the life cycle of a 153 Key statistics 26 Creating sustainable value through good mine governance 98 Our economic contribution in South Africa 32 Our platinum management committee in 2020 (PMC) Cover image – A rope shovel in operation at Mogalakwena Mine Our report 1 2 3 4 Approach to reporting 5 6 7 Anglo American Platinum is a member of the Anglo American plc group, guided by our purpose and values while considering the complexities of the platinum group metals (PGM) industry and our operating countries in developing our strategic priorities. The synergies created by a common purpose, shared values and strategic focus underpin significant benefits for our stakeholders (page 64 ). This integrated annual report is one of our primary communications Our reporting suite with stakeholders. While it is prepared mainly for providers of capital and shareholders, financial information is balanced with For more information, visit: angloamericanplatinum.com/investors/annual-reporting commentary on our most material sustainability issues for an integrated view. This report covers the 12 months to 31 December Integrated annual report 2020 and follows a similar report for the year to 31 December 2019. – Balanced assessment of our performance and ability to create sustainable value It sets out our approach to governance and key decisions in the – Relevant extracts from supplementary reports, ANGLO AMERICAN PLATINUM LIMITED review period, progress against prior strategic goals, and revised particularly ESG report INTEGRATED REPORT2020 strategic priorities under our revised strategy development process – Developed for key stakeholders: employees, local Integrated (see report content and page 37 ). For completeness, we discuss annual report communities, non-governmental organisations 2020 risks, opportunities and trade-offs between our capitals under each (NGOs), customers, investors and government. Anglo American Platinum Limited strategic element, as well as relationships between external and – International <IR> Framework of the International internal factors that enable Anglo American Platinum to create Integrated Reporting Council – South African Companies Act 71 2008, as amended value. We detail our outlook, again considering risks, opportunities (Companies Act) and trade-offs, to give stakeholders a balanced view of our group – JSE Listings Requirements and its prospects. – King Report on Corporate Governance for South Africa 2016 (King IV)* Environmental, social and governance report – Detailed disclosure on key environmental, social and governance elements that could have a material impact on our performance and business if not managed effectively – Prepared in accordance with core requirements Environmental, social and governance report of GRI Standards. 2020 – Anglo American plc group safety and sustainable Anglo American Platinum Limited development (S&SD) indicators, definitions and guidance notes for non-financial indicators. These are available on request. Assurance – King Report on Corporate Governance for South Financial and several non-financial aspects of this report and of Africa 2016 (King IV) our 2020 suite of reports are independently assured. The report of the external auditor on our consolidated financial statements is on Annual financial statements page 4 of the annual financial statements, while the external Prepared according to: assurer’s report on specific non-financial indicators is on page 195 – International Financial Reporting Standards (IFRS) ANGLO AMERICAN PLATINUM LIMITED of our ESG report. – SAICA Financial Reporting Guides AUDITED ANNUAL FINANCIAL2020 STATEMENTS – Financial Reporting Pronouncements issued by Audited annual financial statements the Financial Reporting Standards Council 2020 – South African Companies Act 71 2008 – JSE Listings Requirements Anglo American Platinum Limited Forward-looking statements disclaimer – King IV recommendations. Certain elements in this integrated annual report constitute forward- – King Report on Corporate Governance for South looking statements. These are typically identified by terminology Africa 2016 (King IV) such as ‘believes’, ‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘intends’, ‘estimates’, ‘plans’, ‘assumes’ and ‘anticipates’, or negative variations. Such forward-looking statements are subject to a number of risks and Ore Reserves and Mineral Resources report uncertainties, many beyond the company’s control and all based on – Updated estimates and reconciliation of Ore ANGLO AMERICAN PLATINUM LIMITED Resource and Mineral Resource statements for all the company’s current beliefs and expectations about future events. Such statements could cause actual results and performance to differ our assets ORE RESERVES AND MINERAL RESOURCES REPORT 2020 – As per SAMREC Code guidelines and definitions materially from expected results or performance, expressed or implied. Ore Reserves No assurance can be given that such future results will be achieved; (2016) and Mineral Resources Report – Complies with JSE Listings Requirements 2020 actual events or results may differ materially as a result of risks and – Signed off by Competent Persons. Anglo American Platinum Limited uncertainties facing the company and its subsidiaries. * Copyright and trademarks are owned by the Institute of Directors in Southern Africa NPC and all of its rights are reserved. Anglo American Platinum Limited integrated annual report 2020 1 Our report Reporting principles Our integrated annual report is structured against the framework and guiding principles of the International Integrated Reporting Council (IIRC): Consistency and Strategic focus and Reliability and Connectivity of Accountability comparability future orientation completeness information Year-on-year Insight on how our Our leaders are Our leaders provide This report provides comparisons strategy influences accountable for the assurance that this a holistic view of the demonstrate progress our ability to create company’s actions, report includes all our company covering toward our strategic value in the short, and they are material priorities in a financial, operational goals. medium and long custodians of our balanced way, and and non-financial term. governance without material error. aspects. framework. The six capitals under the IIRC framework translate across our pillars of value as follows: Social and IIRC capital Financial Manufactured Human relationship Natural Intellectual Anglo American Platinum pillar of value All pillars People, safety Environment, Financial/cost Production/sales and health Socio-political mineral resources Report content Our material issues (from page 70 ) reflect the external and We have repositioned Anglo American Platinum in recent years to internal challenges presented in 2020. These are issues with the establish a foundation for value creation for all stakeholders. We greatest real and potential impact – positive and negative – on changed our approach to strategy with an always on approach, achieving our business objectives and are woven into this narrative. aimed at being more dynamic by continually scanning for signs