POSITIONED FOR A SUSTAINABLE FUTURE SUSTAINABLE A FOR POSITIONED BUILDING ON OUR FOUNDATIONS FOUNDATIONS OUR ON BUILDING INTEGRATED 2017 REPORT INTEGRATED ANGLO AMERICAN PLATINUM LIMITED ANGLO AMERICAN PLATINUM ANGLO AMERICAN PLATINUM LIMITED INTEGRATED REPORT 2017 CONTENTS BUILDING ON OUR Our business FOUNDATIONS 1 Our approach to reporting 4 Group performance POSITIONED FOR A 5 Amplats as a responsible citizen 6 Our material issues SUSTAINABLE FUTURE 8 Chairman’s letter 10 World’s leading primary producer of PGMs 12 Our business model Amid unprecedented challenges facing the Business context and strategy global mining sector, Anglo American Platinum 14 PGMs in the modern world (Amplats) is proving its resilience and ability to 16 Our markets 22 Stakeholder engagement and issues manage change through a focused strategy that 26 Our strategy journey has positioned our group for a different future. 30 Social capital is vital to our strategy 34 Risk management and our top risks By concentrating on elements we can control, 40 Chief executive officer’s review building the foundations for continuous 44 Performance against operational targets improvement and developing international Performance review markets for our products, we are delivering on 46 Financial review our strategy. After several years of intense work, 54 Five-year review 57 Tax contribution through the life cycle of a mine we have shaped our business for a sustainable 62 Operations overview future – a business that is more robust, 78 Process review responsive and competitive. 80 Ore Reserves and Mineral Resources review By focusing strategically on value and not Governance 84 Our board volume, we have repositioned our portfolio by 86 Our executive committee exiting certain assets and capitalised on market- 88 Corporate governance development opportunities. We are also building 94 Audit and risk committee report 97 Social, ethics and transformation committee positive relationships with all our stakeholders report while our operations concentrate on optimising 100 Nomination committee report 101 Safety and sustainable development their potential. Our progress is detailed on committee report pages 26, 22 and 62 respectively. 104 Remuneration report 122 Analysis of shareholders Refers to other pages in this report. 123 Shareholders’ diary Appendices Supporting documentation on the website 124 Directors’ responsibility and approval of Full annual financial statements annual financial statements Full Ore Reserves and Mineral Resources report 124 Company secretary’s certificate Supplementary report GRI Standards referenced index 125 Independent auditor’s report UN Global Compact Assessment 126 Summarised consolidated financial statements 142 Independent assurance report 144 Key statistics IBC Administration Separate document Notice of annual general meeting 2017 www.angloamericanplatinum.com/investors/annual-reporting/2017 OUR BUSINESS: OUR APPROACH TO REPORTING OUR APPROACH TO REPORTING Our business Throughout this report, and in supplementary information on our website, we focus on the relationships between external and internal factors, that enable Amplats to create value. INTEGRATED REPORT SUPPLEMENTARY REPORT Our annual integrated report provides a holistic Detailed information supporting disclosures in the assessment of the group’s ability to create value. integrated report, as well as the GRI Standards index, mining charter performance and glossary. This report includes information extracted from the annual financial statements and supplementary reports. Given the scale of change in our group (workforce, It includes non-financial aspects which, if not managed, metrics and reporting standards), we have not provided could have a material impact on our performance and comprehensive targets for 2018. We will do so in the on our business. The report is developed for a wide next report. range of stakeholders, including employees, local communities, non-governmental organisations (NGOs), customers, investors and government. Reporting framework International <IR> Framework of the International Integrated Reporting Council · South African Companies Act 71 2008 (Companies Act) · JSE Listings Requirements · King Report on Corporate Governance for South Africa (King IV) · Global Reporting Initiative (Standards 2016) guidelines · Anglo American plc group safety and sustainable development (S&SD) indicators, definitions and guidance notes for non-financial indicators. These are · available on request. Assurance Financial and several non-financial aspects in this report and in our 2017 suite of reports are independently assured. The report of the external auditor on our summarised consolidated financial statements is on page 125, while the report of the external assurer on specific non-financial indicators appears on pages 142 and 143. Available in print and online as a pdf ANNUAL FINANCIAL STATEMENTS ORE RESERVES AND MINERAL The audited annual financial statements present RESOURCES REPORT statutory and regulatory information required by In accordance with the Listings Requirements of the the company’s stock exchange listing. JSE Limited, Amplats prepared its Mineral Resource and Ore Reserve statements for all its operations with reference to the SAMREC Code guidelines and definitions (2016 edition). Competent persons have been appointed to work on, and assume responsibility for, the Mineral Resource and Ore Reserve statements for all operations and projects, as required. Reporting framework Reporting framework · International Financial Reporting Standards (IFRS) · JSE Listings Requirements · South African Companies Act 71 2008, as amended · SAMREC Code guidelines and definitions (2016 edition) · Listings Requirements of the JSE Assurance Assurance · The report of the external auditor on our financial statements is on In compliance with the three-year external review and audit schedule: page 4 Optiro Mining Consultants conducted a detailed numerical audit of · the data gathering data, transformation and reporting of Mineral Resources and Ore Reserves for Tumela and Dishaba mines. Available online as a pdf Available online as a pdf Anglo American Platinum Limited Integrated Report 2017 1 OUR BUSINESS: OUR APPROACH TO REPORTING OUR APPROACH TO REPORTING continued This integrated report is one of our primary communications with stakeholders. While it is prepared mainly for providers of capital and shareholders, financial information is balanced with commentary on our most material sustainability issues for a holistic view of the company. This report covers the 12 months to 31 December 2017 and follows a similar report for the year to 31 December 2016. REPORTING PRINCIPLES AND APPROACH Our integrated report is guided by the framework of the International Integrated Reporting Council (IIRC), published in December 2013. Our disclosure considers the guiding principles of this framework: Year-on-year comparisons Insight on how our strategy Our leaders are accountable Our chief executive officer This report is a holistic view demonstrate progress towards influences our ability to create for the company’s actions, provides assurance that this of the company, with financial, our strategic goals. value in the short, medium and and are the custodians of our report includes all our material operational and non-financial long term. governance framework. The priorities in a balanced way, aspects. leadership section (page 88) and without material error. details our governance structures and the key issues they dealt with in 2017. STRATEGIC CONSISTENCY AND FOCUS AND FUTURE ACCOUNTABILITY RELIABILITY CONNECTIVITY OF COMPARABILITY ORIENTATION AND COMPLETENESS INFORMATION For corporate and compliance information, please see administration on inside back cover. Other sources of information Additional information, including detailed disclosure on our sustainability performance in our supplementary report www.angloamericanplatinum.com/investors/annual-reporting/2017 This report includes disclosure on all entities in our consolidated financial In reviewing our material issues, we considered: statements, but excludes non-financial data on our joint ventures. · The views, expectations, interests and concerns conveyed by stakeholders, directly and indirectly, formally and informally For completeness, we also consider threats, opportunities and outcomes Peer reports and industry benchmarks emanating from other entities or stakeholders with a significant effect on · Implicit and explicit messages conveyed by strike action and other our ability to create value. · labour relations issues We now disclose our performance as all platinum group metals · Relevant legislation and regulation, and our commitments (expressed as platinum, palladium, rhodium, gold, iridium and ruthenium · Media coverage and market reports on the company, the platinum metal in concentrate) to better reflect the basket of metals we produce. sector and the industry · Our values, policies, strategies, systems, goals and targets ASSURANCE · Significant risks that could affect our success Financial and several non-financial aspects in this report and in our 2017 · Views expressed by stakeholders through direct interviews by an suite of reports are independently assured. The report of the external external party. Targeted participating stakeholders included investors, auditor on our summarised consolidated financial statements is on media and market analysts, NGO leaders and customers. page 125, while the report of the external assurer on