Environment

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In the Report to Society 2004, the company set a number of objectives for 2005. All of these targets have either been met in full or in part.

The discussion that follows reports on the group’s environmental performance in line with the company’s business principles, which appear in orange below.

We recognise that the long-term sustainability of our business is dependent upon good stewardship in both the protection of the environment and the efficient management of the exploration and extraction of mineral resources.

Environmental policy and strategy within AngloGold Ashanti is overseen by the Committee on Safety, Health and Sustainable Development. Although the committee is apprised of developments in all spheres of activity, the focus of each meeting rotates through safety, health, environment and community issues to ensure that adequate focus is given to each area.

The group has an environmental policy in place at a corporate level, although operations may have their own site-specific policies, which are consistent with group policy.

Environmental policy and strategy is monitored and audited against Group Standards at a corporate level. Within each region, the regional environmental manager provides advice to the relevant management teams. At most operations, on-site environmental professionals are responsible for implementing the mine’s environmental programme and advising the general manager. Regional environmental offices and the operations themselves may, when appropriate, engage specialists who consult to the operations.

An Environmental Steering Committee has been established at a corporate level and is made up of the regional environmental managers. The insights of this group are used to identify and debate critical environmental issues facing the company, develop strategic response recommendations, and formulate plans for practical implementation.

As an example of the integrated approach that has been adopted, a strategic review of environmental management at the Obuasi operations was completed in November. The purpose of the exercise was to review environmental conditions at the operations, identify current environmental risks, prioritise these risks, develop short-term action plans and make recommendations for an improved environmental management programme.

We will comply with applicable environmental laws, regulations and requirements

The group's business principles and environmental policy guide AngloGold Ashanti's management of the impact that the company has on the environment. Operations are subject to the environmental laws, rules and regulations of the various countries in which they operate but, where no such laws exist or where these laws are perceived to be inadequate, operations are guided by the company's business principles, environmental policy and good practice.

Managing environmental issues is a key component of the overall risk management process. Thus, through effective environmental management, the company is able to manage its exposure to business risks and liabilities, providing assurance to shareholders and attracting potential investors.

In South Africa, for example, Environmental Management Programmes (EMP) are in place for the West Wits, Vaal River and Ergo operations as is required by the Minerals and Petroleum Resources Development Act (MPRDA). All policy issues that can be addressed at a business unit level are included in the EMP management actions, covering radiation management, waste management, air quality management, land management, surface water management and groundwater management. The EMPs are updated every two years. The conversion process started in 2005 with an Environmental Impact Assessment (EIA) being developed for each operating area where present direct and indirect impacts on the environment are identified and evaluated in terms of significance. Future direct and indirect impacts are identified and evaluated in the decommissioning and closure section of the EMP. Management actions and opportunities required to reduce the negative impacts are identified. The South Africa region’s environmental policy was also modified during the quarter to comply with the requirements of ISO 14001, regarding such issues as pollution prevention, legal compliance, continual improvement and policy availability to the public.

No fines have been recorded during the year. A strategic environmental review of the Obuasi mine has been carried out by a team of internal environmental specialists drawn from the United States, Australia and Ghana. The purpose of the exercise was to review environmental conditions at the operations, identify current environmental risks, prioritise these risks, develop short-term action plans and make recommendations for an improved environmental management programme. The review has identified a series of remedial actions to address problem areas. A number of environmental licences and permits were granted during the year and none was retracted on the basis of environmental performance.

At the Big Springs operation in Nevada, the Great Basin Mine Watch appealed against the renewal of the Water Pollution Control Permit issued by the Nevada Environmental Protection Division. AngloGold Ashanti (Nevada) Corp. filed a petition in response to intervene. Briefs have been filed by the parties and a hearing to resolve the appeal has been scheduled to go before the Nevada State Environmental Commission on 29 and 30 March 2006.

ISO 14001

In March 2005, AngloGold Ashanti’s Executive Committee (Exco) decided to pursue ISO 14001 certification for all its operating mines by December 2006. This follows a gap analysis undertaken during 2004 which indicated the degree to which current EMSs were aligned with ISO 14001.

The regions which had not previously implemented ISO 14001 are at different stages of implementation. The implementation in South Africa, for example, has been integrated with the region’s Enterprise Wide Risk Management system, since environmental management is viewed as yet another risk that a business unit faces. The present auditing system, the legal register system, the performance assessment report process, and the EMP update process are all being incorporated into the new system. Overall, the initiative is on schedule, with good progress being achieved in the areas of systems procedures, the planning section, and the implementation and operation phase. The Geographic Information System (GIS) continued to be developed as a database for all environmental management data from monitoring and management actions, represented spatially for the three geographic areas. The GIS is being incorporated into the main EMS.

The following operations are currently ISO 14001 certified:

Environmental incident reporting

AngloGold Ashanti’s reporting protocol enables the company to identify and manage the risks and impacts of environmental incidents, as well as their associated costs, by providing the appropriate level of information necessary to advise the executive and the board of the nature and occurrence of important incidents and developments and management’s response.

In line with this protocol, a major environmental incident report must be made within 24 hours to the corporate office. A summarised report of incidents and major developments within each region is presented at the Safety, Health and Sustainable Development Board Committee meeting.

For purposes of reporting, a major environmental incident is defined as 'an event, action or non-conformance with a procedure that results, or has the potential to result, in an adverse impact on the surrounding environment; or any event, action or occurrence which is contrary to the AngloGold Ashanti business principles’. The definition was reviewed by the board committee and is presented below.

A major incident is one which:

Subject to meeting the above criteria, examples of issues of direct interest include, but are not limited to:

• matters which, by law, must be reported to government agencies;
• matters which, by law, are subject to fines and/or penalties;
• environmental impacts which are by their very nature either extensive or likely to have long-term effects;
• cyanide-related incidents;
• tailings dam failures;
• spillage or leakages with impact beyond the company’s designated containment areas – of tailings materials, hyrdocarbons, acids and other chemicals;
• emissions beyond permitted levels e.g. atmospheric and effluent releases;
• dust emissions which may impact on the company’s reputation; and
• wildlife mortalities and land clearing activities which may impact on the company’s reputation.

24 incidents were reported to the board during the year, which is a substantial increase on the number (16) reported the previous year. This increased level of reporting is as a result of: the increase in the size of the group and the fact that environmental performance is now reported for the Ghana and Guinea operations; and improved environmental performance, monitoring and reporting.

In addition, the Safety, Health and Sustainable Development board committee is informed of major developments and their anticipated impact on the company. The subjects that are to be reported on include matters such as:

• legislative and/or regulatory developments dealing with environmental matters that will have or, if passed or likely to be passed into law or adopted, would have a major impact upon AngloGold Ashanti business;
  
• identification of and/or updates on threatened or pending legal action against the company involving an environmental matter;
  
• environmental initiatives, or programmes, developed or proposed by non-governmental organisations (NGOs) and targeted at the company or the broader mining industry;
  
• complaints or demands dealing with environmental matters that are brought by a local community or government entity against the company; and
  
• any other environmental issue that operations feel is of significance to its region.

Risk management

Risk management forms an integral part of AngloGold Ashanti’s environmental management systems. Each operation undertakes its own risk assessment in respect of environmental issues and these risks are then managed at an operational level. A number of high level risks were identified during 2005 and considered at a corporate level. These include increasing activity by NGOs such as Oxfam and Earthworks, in various anti-gold mining campaigns, for example, the ‘No Dirty Gold Campaign‘. Following media reports on AngloGold Ashanti in the DRC, the company featured on that campaign’s website.

The use of cyanide in the mining industry is an ongoing debate, particularly in North America (see case study: Using cyanide responsibly at CC&V), where environmental activist groups are continuing their efforts to ban the use of cyanide or other toxic/acidic ore processing reagents, heap leaching or surface mining. AngloGold Ashanti was party to the development of the International Cyanide Management Code and was one of the first signatories announced in November 2005. (See box below).

Water management and the prevention of pollution, in particular groundwater seepage, are important global environmental concerns. The need for an integrated regional approach to water management was highlighted in South Africa recently when the Department of Minerals and Energy (DME) issued a directive to mining companies in relation to water pumping costs. (See case study: Mine closure stretches environmental legislation.)

Mine closure issues, ranging from planning to financial provisions and potential liabilities are significant in all regions of operation. All AngloGold Ashanti operations have mine closure plans in place that are regularly updated. The total expected liability is detailed below.

The company will ensure that financial resources are available to meet its reclamation and environmental obligations

In all the jurisdictions in which the group operates, the company is required to conduct closure and rehabilitation activities in order to return the land to a productive state post-mining. Additionally, these same jurisdictions require the company to provide financial assurance, in a form prescribed by law, to cover some or all of the costs of the anticipated closure and rehabilitation for the operation. Rehabilitation refers to the process of reclaiming mined land to that which existed prior to mining or to a pre-determined, use post-mining.

Closure plans are devised prior to the commencement of operation and are updated regularly to take into account life-of-mine projections. Although the final cost of closure cannot be fully determined ahead of closure, provision is made during the mine’s economic operation. Total estimated environmental liability (rehabilitation and mine closure costs) amounted to $337.7 million as at 31 December 2005 (2004: $350.1 million).

In South Africa, the newly enacted MPRDA has emphasised the need for companies to cover all decommissioning, closure and rehabilitation financial liabilities at all times during the operational phases of the mines. The shortfall between the presently declared environmental liabilities and the present balance in the Trust Fund, designed to cover these liabilities, is R305 million. Negotiations have taken place over a period of time with the government over this issue, and it has recently been agreed with the DME that a joint task team will address the issue by revisiting an original agreement formulated three years ago.

This agreement described certain environmental and financial criteria that must be achieved by a mining company if the company wanted to use the Trust Fund mechanism solely for funding up to the closure date of the mine. The DME finalised a guideline document for the estimating of closure costs at the beginning of the year. The document was revised with input from the mining industry. Nevertheless, adoption of this guideline has not significantly increased the estimated cost of closure.

The new act and regulations place particular emphasis on the design, construction, operation and closure of tailings storage facilities and waste rock dumps. Approval from the government departments for the detailed closure plans for the Daggafontein and Brakpan tailings storage facilities was obtained during the year, a significant first for the gold mining industry in South Africa. The Brakpan complex facility is the largest gold tailings facility in the world.

 Total environmental liability (restoration and decommissioning) are detailed below:

Total environmental liability 2005/2004

Country	Total		Total**		Comments
	estimated		estimated
	liability		liability
	2005		2004
	($ million)		($ million)
Argentina	8.8				The reduced costs are attributable to rehabilitation work carried out in 2005, exchange rate variations and adjustments made to the attributable portions of the company shareholdings.
			38.9
Brazil	12.5				The reduced costs are attributable to rehabilitation works carried out in 2005, exchange rate variations and adjustments made to the attributable portions of the company shareholdings.
Australia	32.7		38.3
Ghana	47.1				The upward revision of the Obuasi closure cost is a result of ongoing negotiations with the Ghanaian EPA regarding the rehabilitation programme and the mines’ closure plans.
			39.5
Guinea	8.5				Adjustments are a result of the plant expansion and a revision of the closure plan incorporating a more conservative approach to closure cost estimation.
Mali	13.4				At Yatela, the increase accommodates closure and rehabilitation of several new leach pads.
			45.3
					At Sadiola, the decrease is a result of a revised estimate, excluding retrenchment costs and rehabilitation carried out as a result of ongoing efforts.
					At Morila, the increase is due to a revised closure plan which affects the slopes of the pit walls.
Namibia	3.0
Tanzania	44.1				At Geita, the increase is due to a revision of the closure plan, including quantity survey, which resulted in more accurate estimation of costs.
South Africa	145.3		133.2		Changes in South African legislation have resulted
					in increased liability estimates and provisions being
					put in place.
USA	22.3		55
Total	337.7		350.2
*Note: The total environmental liability has decreased year-on-year. The current figures relate directly to the audited financial statements, which represent the current environmental liability, whereas the 2004 figures includes estimates related to projected future liability. Changes have also arisen as a result of the closure of operations.

The company will ensure that its employees and contractors are aware of this policy as well as their relevant responsibilities

The training of employees regarding environmental policies and procedures is an integral part of the ISO 14001 system in place at those operations that are ISO 14001 certified. Many of the operations that are not yet ISO 14001-compliant have in place sound training procedures for employees and contractors.

Environmental awareness training is generally most effectively included in site induction programmes. Other media used at an operational level include noticeboards, briefings, employee and contractor handbooks and the intranet.

We will conduct audits to evaluate the effectiveness of our environmental management systems

Both internal and external audits were conducted during the year. Most commonly, these were associated with the ISO 14001 certification and maintenance requirements. The table above indicates the dates of the current ISO certification audits.

As a signatory to the Australian Minerals Industry Code for Environmental Management (Code 2000), the Australia region is committed to annual site audits in terms of the code. In February 2005, RISKMIN (certified auditing company) audited Sunrise Dam against its Corporate Environmental Standards. The result of this audit indicated a 71% level of compliance. These Environmental Standards are being used to develop the ISO 14001 system.

We are committed to communicating and consulting with interested and affected parties on environmental aspects of our activities

Communication and consultation with interested and affected parties on environmental aspects of AngloGold Ashanti activities is done through a range of mechanisms. Much of the interaction with community members is dealt with under the community section of this report. Of particular relevance to environmental reporting is the public consultation and disclosure programme currently being undertaken at Sadiola and Yatela in Mali. See case study in the Report to Society 2004.

A list of the stakeholders with whom the company engaged, both formally and informally, may be found on the website. This list is not exhaustive. It provides an indication of the range of bodies with which the company interacts on matters related to the environment.

In South America, for example, a toll-free number is available to community members to lodge complaints, which are then investigated.

We will work to continually improve our environmental performance.

The company’s primary environmental concerns are:

• the use and management of cyanide,
• mine rehabilitation and closure,
• water use and management,
• the use of other resources (such as energy) and the minimisation of waste,
• biodiversity issues, and
• climate change.

Environmental and human rights NGOs have an important role to play in monitoring and reporting on the environmental (and human rights) conduct of companies, including AngloGold Ashanti. The company will continue to engage with these organisations in seeking solutions to identified problems, both directly with the NGOs and through our association with organisations such as the ICMM and the CRJP.

The use and management of cyanide

The use of cyanide in the recovery of gold is a core concern for the gold mining industry and is critical to its viability. This is particularly so for North American operations. The CMA has taken the lead in legally challenging the anti-mining ban in Summit County (not a county where AngloGold Ashanti conducts mining or exploration activities) and AngloGold Ashanti is represented on the steering committee. (See case study: Using cyanide responsibly at CC&V.)

AngloGold Ashanti has been actively involved in the development of the International Cyanide Management Code and has adopted the published protocols and standards of practice for cyanide management. The code, which is available at www.cyanidecode.org, is a voluntary industry initiative developed under the auspices of the United Nations Environment Programme (UNEP) and the International Council on Mining and Metals (ICMM), was launched in May 2002.

The code has two major parts:

• a commitment by signatories to manage cyanide in a responsible manner; and
• the practices that must be followed to ensure this.

AngloGold Ashanti became a signatory to the code in 2005.

AngloGold Ashanti is well on its way to compliance with the code and internal audits have been concluded at all operations in anticipation of external auditing.

• In January, Sunrise Dam in Australia was audited against 31 code categories and was found to be compliant with 29 categories and substantially compliant with two categories.
• In October 2004, CC&V was audited internally against 31 categories of the Code and was found to be fully compliant.

Cyanide usage by AngloGold Ashanti operations during 2005 amounted to 31,939,528 kg. Note that in 2004, cyanide usage by the former Ashanti operations (in Ghana and Guinea) was excluded.

The following table reports cyanide usage by operation in 2005.

Cyanide use (kg)

Country		2005		2004
Argentina		560,000
				1,478,000
Brazil**		1,037,000
Australia		1,671,551		1,535,842
Ghana		5,954,000		*
Guinea		3,354,000		*
Mali**		6,873,000
Namibia		814,441		10,157,000
Tanzania		2,497,400
South Africa***		7,182,330		16,851,000
USA		1,995,806		2,189,254
Total		31,939,528		32,211,096*
*	The former Ashanti operations in Ghana and Guinea did not report for the year 2004.
**	Total cyanide usage by operations and not attributable usage. Note that the company reports attributable production, that is, that portion of production, that is attributable to the company as a percentage of ownership.
***	The significant decrease in cyanide usage at the South Africa operations is as a result of the closure of Ergo.

Mine rehabilitation and closure

The disturbance of land remains one of the most visible impacts of mining operations, particularly opencast mining with the creation of pits, surface infrastructure, and rock and tailings storage facilities. EIAs conducted prior to the commencement of mining have as their aim the identification and minimisation of these and other impacts. Mitigating measures identified are then incorporated within the operation’s EMS and the operation is then bound to undertake these as mining progresses. Where possible, rehabilitation of disturbed areas is carried out concurrently with mining operations so as to minimise the amount of disturbance at any one time. Rehabilitation standards are usually regulated by the relevant national and regional authorities.

As new operations are developed and commissioned, older mines cease operation and are closed. In an environmental sense, true closure may often only be achieved long after mining has ceased and involves extensive planning and close collaboration with the regulatory authorities to obviate any unwanted environmental consequences and satisfy regulatory requirements.

A number of closures are currently in progress:

• Closure of the Alamatoula pit at Yatela in Mali is currently under way. (See case study: Planning and implementing closure at Alamatoula, Yatela.)
• The closure programme for the Big Springs operation in the United States continued with costs of about $80,000 incurred in 2005. These costs covered implementation of the long-term passive water management programs at the mine and mill and water quality and biological monitoring. The Big Springs operation, which ceased milling in 1994, has completed all of its major reclamation activities, has maintained and monitored the performance of the closure measures and is additionally in the process of seeking bond release.
• With the official cessation of gold production on 30 March 2005, Ergo moved into full closure mode. As from that date, all activities conducted at Ergo were aligned with achieving closure certificates in terms of section 43 of the MPRDA. Approval from the relevant government departments for the detailed closure plans for the Daggafontein and Brakpan tailings storage facilities were obtained in 2005.
• The Mina Velha decommissioning process in Brazil continued in 2005. The clean-up project for the whole area, which includes dismantling/re-construction of a storm water drainage system, is under way. An expert archaeological team has been hired to follow up the project considering that some very old items of equipment were found during excavation activities. (See Report to Society 2003 case study: Beyond the life of mine – model decommissioning plan at Mina Velha.)
• Also in Brazil, as part of the Old Tailings Deposits (OTD) Agreement, two sites have been rehabilitated – Morro do Galo and Galo. The next site scheduled to be rehabilitated is Resende in May 2006. It is expected that this programme will have been completed by August 2006 at an estimated cost of $500,000.
• Decommissioning of the Engenho d’Água Mine is underway although the rehabilitation programme was concluded in December 2004. A final report is being prepared for submission to the Mining Resources Department (DNPM).

Resource use and waste generation

AngloGold Ashanti is committed to reducing the use of, and improving the efficient use of, scarce environmental resources such as energy, water, timber and other materials. Apart from the environmental advantages of reducing the use of such raw materials, the group can also potentially achieve significant cost savings.

Environmental targets are set by the individual operating mines or business units as they apply their own EMSs which reflect the priorities unique to them. Information on resource use and waste generation is collected and recorded at site level.

Water usage

Varying site conditions, mining and treatment processes, and the availability of water dictate to a large degree the use of water and the level of efficiency achieved.

Examples of programmes/initiatives in place at an operational level:

• A water Management Guide was developed in the Australia region to ensure that the interaction of mining and exploration activities with hydrological aspects of the environment does not result in over-use, unplanned wastage or adverse environmental or community impacts on water resources.
• CC&V uses a probabilistic water balance model (developed with the assistance of Golder Associates) to guide storage capacity sizing, account for meteorological events and evaporative losses, manage solution movements through the heap leach facility, and to assess current and future water needs (inputs) to the project. This model provides for predictions of volumes of solution in inventory over time as impacted by seasonal factors and changes in operating parameters.

In 2004, CC&V instituted a new water conservation measure that involves the burial of the drip irrigation lines on the surface of the heap leach facility. Recycling of water contained with the heap leach facility is a fundamental element of the facility design, construction and operation.

In South Africa, water management is of particular concern. Four mining companies operate in the Klerksdorp, Orkney, Stilfontein, Hartebeestfontein (KOSH) area, namely, Buffelsfontein gold mine, formerly owned by DRDGOLD, Harmony Gold Mining Company Limited, Stilfontein Gold Mining Company Limited and AngloGold Ashanti. All of these companies operate upstream from AngloGold Ashanti’s mining operations and, in the past, these mines have been obliged to continue pumping underground water, even once their mining operations have ceased. When Buffelsfontein was placed into provisional liquidation on 22 March 2005, there was some uncertainty as to whether or not the pumping operations would continue at Stilfontein and Buffelsfontein. DRDGOLD has denied having any obligation regarding a contribution towards the pumping of underground water in the area.

As a result of this uncertainty, AngloGold Ashanti launched an urgent interdict on 12 April 2005 against DRDGOLD Limited, Buffelsfontein Gold Mines Limited, Stilfontein Gold Mining Company Limited, Harmony Gold Mining Company Limited, Hartebeestfontein Gold Mining Company Limited, the minister of minerals and energy, the minister of water affairs and forestry, and the minister of environmental affairs and tourism. AngloGold Ashanti applied to court for an order directing the mining companies to continue pumping and extracting underground water at their mine shafts and for the ministers to issue directives to the mining companies to continue with pumping at their mines, to take the necessary measures to prevent further pollution or degradation of the KOSH area, and to make the area safe.

As a result, the minister of water affairs and forestry issued directives that pumping should continue, and for AngloGold Ashanti, DRDGOLD, Harmony and Stilfontein to contribute equally to the costs. AngloGold Ashanti, DRDGOLD and Harmony have, under protest, complied with the directives but Stilfontein has refused to comply and is facing court action from the state in this regard. (See case study: Mine closure stretches environmental legislation.)

The DME and the Department of Water Affairs and Forestry (DWAF) have recommended that companies involved in mining areas such as Klerksdorp and Carletonville, collectively design a regional closure plan for these geographic areas, in addition to the normal mine closure plans.

Total water usage by AngloGold Ashanti amounted to 78,458,736 m³ in 2005.

Total water usage (m³ per annum)

Country	2005		2004
Argentina	1,200,000
			3,025,041
Brazil**	3,827,904
Australia	2,989,962		3,628,164
Ghana	15,670,000		*
Guinea	3,717,191		*
Mali**	17,093,115
Namibia	1,031,554		32,440,460
Tanzania	4,268,816
South Africa***	27,086,783		49,629,937
USA	1,573,411		1,638,830
Total	78,458,736		90,363,232

Energy usage

Energy usage is both a substantial factor in environmental management globally, and is a major cost driver, particularly in underground mining. In its efforts to conserve energy, AngloGold Ashanti is focused on ensuring the efficient use of energy and on developing and implementing renewable energy sources.

During 2004, AngloGold Ashanti together with Anglo American plc completed a technology strategy project in respect of an energy platform which has as its objective the reduction of the group's energy intensity year-on-year. The target is to save 1 % per annum over the next 10 years, with the compounded total about 15%.

AngloGold Ashanti has registered a 6.7 % reduction in electrical energy consumption from 2004 to 2005. This included a 60% reduction at Ergo (closing), 14% reduction at Savuka (right sizing), and an increase of 32% at Moab Khotsong that is coming into production. The other business units had also generally lower energy use. During the year, the Sunrise Dam mine implemented a solar power pumping system to manage and control the water levels on the surface of the tailings dam, as well as a control system to use wind generated power for the purpose of ground water level control.

Total energy use by AngloGold Ashanti operations in 2005 was 29,213,073 GJ.

Total energy usage (GJ)

Country	2005		2004
Argentina	725,832
			3,115,907
Brazil**
Australia	2,149,981		2,294,075
Ghana	3,142,796		*
Guinea	4,057,888		*
Mali**	1,530,354
Namibia	227,524		7,453,150
Tanzania	1,896,088
South Africa	14,880,141		17,099,157
USA	1,328,301		1,241,179
Total	29,213,073		31,203,528

Biodiversity

The need for perserving biodiversity and the ongoing threats to habitat continue to be the subject of global debate. AngloGold Ashanti, through its participation in the ICMM’s Biodiversity Taskforce, is engaged with the IUCN (World Conservation Union) in a dialogue on mining and biodiversity.

In South Africa, a first-phase biodiversity assessment (desktop study) was completed for the Vaal River and West Wits operations.

No formally defined protected areas or sensitive areas exist in the Vaal River or West Wits operations. However, Ergo, which is in the process of closing is situated in close proximity to the Blesbokspruit, a Ramsar-listed wetland system. The Vaal River operations are situated adjacent to the Vaal River which is the country’s most important river system, hosting a number of significant riverine wetlands as well as fauna and flora species.

The South African operations are all situated within the highveld grassland biome which is considered to be one of the most threatened regions in South Africa, with 60 to 80% irreversibly transformed, mainly by agriculture and residential development, and only 2% formally conserved. A number of preliminary Biodiversity Management Units (BMUs), which are areas with homogenous biodiversity (for vegetation, terrestrial and aquatic fauna), have been identified.

The next phase, commencing 2006, will identify specific objectives, programmes and targets for the management of biodiversity (compilation of a Biodiversity Management Action Plan).

In Brazil, most of Anglogold Ashanti operations are situated in biodiversity rich areas such as the Atlantic Forest and Cerrado (Cuiabá Mine, Lamego and Córrego do Sítio). The decline of the Atlantic rainforests, mainly as a result of urbanisation and agricultural development, remain a high conservation concern within Brazil and internationally. For every hectare of Atlantic Forest land cleared for mining operations, the company rehabilitates twice the area using indigenous species. The company has been actively involved in the formal establishment and support of conservation reserves and now has approximately. 1000 ha of land within the Natural Property Private Resource (NPPR) category. The Nova Lima environmental office is fully engaged with state environmental authorities and the legal environmental process. The department works closely with local universities who have been contracted to contribute to management plans and provide inventories of biodiversity in these areas. There is large number of species that inhabitat these areas. Some species have been classified as endangered, while others are classified as vulnerable or at lower risk.

Climate change

The Kyoto Protocol, an international and legally binding agreement to reduce greenhouse gas emissions worldwide, came into force on 16 February 2005. The Kyoto Protocol requires the 126 countries that have signed the agreement to reduce their emissions of greenhouse gases to 5.2% below 1990 levels in an effort to combat climate change. It had to be ratified by 55 industrial nations, representing 55% of the world’s emissions. Russia ratified the convention at the end of 2004. The United States and Australia have refused to ratify the convention. South Africa has acceded to the convention.

In Western Australia, the government has announced the creation of a Greenhouse Task Force to advise the government on viable strategies to manage greenhouse emissions from the stationary energy sector. The EPA has released a Guidance Note on Minimising Greenhouse Gases which specifically addressed the minimisation of greenhouse emissions from significant new or expanding operations.

The State Government is also in the process of developing a State Greenhouse Strategy which will set the wider policy context for greenhouse gas management. Carbon dioxide is the major greenhouse gas in Australia and climate change will have significant impacts in Australia.

The company will participate in debate on environmental matters at international, national and local levels.

AngloGold Ashanti is committed to participating in debate on environmental matters at international, national and local levels. Some of the contributions the group has made internationally include membership of and active participation in the ICMM and the Global Reporting Initiative (GRI) as organisational stakeholders.

As part of its environmental strategy, AngloGold Ashanti actively participates in law-making processes in the countries in which it operates. This is often facilitated by participation in mining associations (for example, the Chamber of Mines of South Africa and the Minerals Council of Australia).