We report our performance in 2006 against our business principles.
Environmental policy and strategy within AngloGold Ashanti is overseen by the Board Committee on Safety, Health and Sustainable Development, which meets on a quarterly basis. The committee comprises three non-executive directors: Bill Nairn (chairman), James Motlatsi and Simon Thompson; as well as chief executive officer Bobby Godsell and chief operating officers, Neville Nicolau and Roberto Carvalho Silva. Members of management are invited to participate in these meetings.
During the year, the board committee considered and reviewed the company’s environmental policy and – apart from a number of minor changes in wording – endorsed it as remaining appropriate to the company. Where there are site-specific environmental policies, directing each operation in accordance with local conditions and regulations, these are required to be consistent with the company’s environmental policy.
The heads of the environmental discipline in each of the company’s various regions around the world participate in an Environmental Steering Committee, which identifies and debates critical environmental issues facing the company, and develops appropriate company responses to these challenges. An in-house environmental workshop, which drew 47 environmental professionals from across the group, together with invited specialists, was held in September 2006 in South Africa. These meetings are a crucial means of obtaining information about the environmental performance of the operations, sharing good practice experiences across the group, strengthening professional support networks and improving communication and awareness of environmental issues within the company.
At an operational level, management of environmental issues and compliance with company policy and government regulations is largely a line function. Line management is, in turn, supported by on-site environmental professionals, who ensure that the company fulfils its obligations to act in an environmentally responsible manner, while at the same time achieving efficient and effective management of its mineral resources.
The company faces a wide range of environmental challenges, and not purely of an operational nature. At the global level, and particularly in North America, concerns about the environmental impact of mining need to be addressed through responsible mining practices and engagement. Government regulation of the mining industry continues to increase in response to public sentiment in the various jurisdictions. Financial institutions, particularly those that are signatory to the Equator Principles, have, with the recent revision of the International Finance Corporation’s Safeguard Policies, strengthened their requirements around loan financing. There are also numerous voluntary international initiatives aimed at addressing issues such as climate change, biodiversity, preventing pollution, securing human rights and ultimately, achieving sustainable development. AngloGold Ashanti is carefully considering these initiatives and formulating company responses including those initiatives in which it chooses to become involved. (See the Ethics and Governance Section).
The nature of the challenges facing the company differs from site to site, and varies through the different stages of the gold production process. In accordance with an ISO14001 requirement, each site has an Aspects Register which defines its main environmental aspects and associated risks. The company’s environmental priorities are reflected in the corporate environmental objectives for 2007.
While the group’s business principles and environmental policy guide the way in which we identify, manage and mitigate the impact that we have on the environment, all operations are naturally subject to the environmental laws, rules and regulations of the various countries in which they operate. Where these laws are not well-developed, or indeed do not exist, our operations are also guided by the company's business principles, environmental policy, environmental guidelines and good practice. The company is committed to assisting governments at both a national and local level in developing legislation that is appropriate and effective. (See case study: Improvements in environmental incident reporting system in Mali).
The group-wide implementation of ISO14001 carries with it an obligation to maintain a legal register which identifies all the laws, regulations and other obligations with which an operation is expected to comply and requires that this information is readily available to operating staff. From a corporate perspective, this assists in providing assurance that the operations are meeting their obligations.
No fines were recorded during the year in respect of environmental issues. In addition, a number of environmental licences and permits were granted with none being retracted on the basis of environmental performance.
In Brazil, the legal action filed by the Nova Lima District Attorney against Morro Velho (the forerunner of AngloGold Ashanti Minera??o) concerning the health impact of arsenic on communities living close to old tailings deposits continues. The final report confirmed no evidence of contamination of the Nova Lima population being attributable to the old tailings deposits. Three of the six old tailings deposits in question have already been rehabilitated and work continues on the other three. (See case study: Rehabilitation of old tailings deposits at Nova Lima, Report to Society 2004.)
and
In March 2005, AngloGold Ashanti’s Executive Committee took a decision that all AngloGold Ashanti operating mines (that is, those not in closure mode or due for closure) should, by December 2006, hold certification to the ISO14001 International Environmental Management System standard. By the end of December 2006, AngloGold Ashanti had achieved ISO14001 cetification for 19 of its 21 operations, that is, excluding Navachab in Namibia and Yatela in Mali. Navachab mine is expected to be certified by the end of March 2007 and Yatela mine, which was previously scheduled for closure but whose life has now been extended, will seek certification by December 2007.
The ISO14001 certification is a significant advance in the company’s environmental management because it assures, both from corporate governance and from a public perspective, that:
AngloGold Ashanti recognises that certification does not necessarily guarantee good operational performance and that the challenge will now be to ensure that the system helps deliver the required on-the-ground results. In addition, the system can be subject to independent assurance for improved corporate governance and other purposes. (See case study: Implementing ISO14001 at AngloGold Ashanti.)
AngloGold Ashanti was party to the development of the International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold and was one of the first signatories to the code in November 2005. (See box below). Companies that are signatories to the code must have their operations audited by an independent third party to demonstrate their compliance with the code.
The International Cyanide Management Institute (ICMI), which will guide and manage the implementation of the code, was formed during the year. AngloGold Ashanti is represented both on the organisation’s board and on its Industry Advisory Group.
AngloGold Ashanti’s environmental professionals participate in incident investigation and risk management processes at a group and operational level. Key environmental risks are identified as part of the company’s overall risk profile and are reported accordingly. (See Annual Report 2006: Risk management.)
AngloGold Ashanti’s incident reporting protocol enables the company to identify and to manage the risks and impacts of environmental incidents, as well as their associated costs. Operations provide the appropriate level of information necessary to advise management and the board of the nature and occurrence of important incidents and developments. In line with this protocol, a major environmental incident report must be made within 24 hours to the corporate office. A summary of reportable incidents and major developments within each region is presented at the quarterly Safety, Health and Sustainable Development Board Committee meetings.
An 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’. Major incidents are reported to the Board. A major incident is defined as one which could affect the company’s reputation or which results in a cost to the company exceeding $100,000 including fines, compensation, clean-up, loss of production, anticipated litigation costs, etc.
The number of environmental incidents reported to the board during the year was at a similar level to 2005. The implementation of ISO14001 has led to increased scrutiny and awareness of incidents at an operational level.
| Operation | Date and nature of incident | Action taken |
|---|---|---|
| Ghana | ||
| Obuasi | Coral Snake rock dump material was eroded as result of heavy rain, flooding Ahansowodea on 24 April 2006. | Immediate clean-up was undertaken. Final closure design for this facility has been moved forward. |
| On 3 October 2006, slurry spillage occurred at Aboagyekrom, a suburb in Obuasi, with negative impact on the environment and affected property. | A pipe replacement programme was instituted which includes regular inspections of pipeline wear. The communication between dam operators and the Tailings Treatment Plant personnel was improved. | |
| On 20 November 2006 an incident occurred as a result of galamsey (artisanal miners) activities when a tailings pipe was deliberately punctured, causing the contents to spill into the environment. The spillage affected land, vegetation and the Nyam River. | Regular checks along the length of pipelines were instituted and security around tailings facilities strengthened. | |
| Guinea | ||
| Siguiri | On 10 August 2006 a CIP tank overflowed, resulting in about 3,500m3 of slurry overflowing the bund and being released to the surrounding environment. | The spill was detoxified with hydrogen peroxide and cleaned up. No injuries or faunal fatalities occurred. |
| South Africa | ||
| TauTona Mine | Three incidents occurred (15 February, 16 February and 11 March 2006) on surface and underground resulting in the release of 12,300kg of refrigerant R134a (a greenhouse gas) after the failure of condenser tubes. The 1A refrigerant plant tripped on low evaporator pressure resulting in approximately 1,550kg of R134a refrigerant being discharged into the atmosphere. | Changes have been made to condenser tubes at all refrigeration plants to ensure that this does not occur again. Extensive repairs have been undertaken. |
| Mine Services (West Wits) | On 14 November and 20 December 2006, respectively, the North Boundary Dam overflowed, due to heavy rainfall in the catchment area and discharged the water into the Wonderfonteinspruit, via the Blyvooruitzicht Canal. | Samples of discharged water were taken and analysed to determine water quality. Subsequently, the dam operating philosophy was reviewed and opportunities for minimising water levels are being explored, including de-silting to restore the full retention capacity and pumping of water to an alternate storage. |
| Metallurgy – Vaal River | Five incidents occurred (10 and 24 January; and 1, 23 and 27 February 2006) when the Bokkamp Dam, a process water storage and return water dam overflowed towards the Vaal River after heavy rainfall. | A R40 million project to increase the capacity of storage dams in the area has begun and will be completed in 2008. (See case study: R40 million dam being constructed to avoid contamination of Vaal River). |
| Ambient air quality monitoring station near the East Gold Acid and Flotation (EGAF) plant recorded sulphur dioxide concentration in excess of the SANS daily average guideline in January and again in June 2006. | Mechanical modifications to the stripper resulted in drastic reduction in sulphur dioxide emissions. After the June incident, an on-line stack emission monitor was installed for proactive emissions’ management during future plant shutdown and startup operations. (See case study: Tenfold reduction in SO2 emissions at Vaal River Gold Acid Plant). | |
| In October 2006 the daily average of SO2 emissions from the EGAF plant, as measured by the in-line stack analyser, exceeded the Registration Certificate’s stack emission limit of 40g/s on two occasions, and again on one occasion in December 2006. (The certificate allows for total emissions of 55g/s – 40g/s for stack emissions and 15g/s for fugitive emissions over a 24 hour period.) | Total plant emissionshave been significantly reduced following the re-engineering of the weak acid stripper and resultant improved SO2 removal from calcine water. With these improvements, the operation achieved the Registration Certificate’s average 24-hour period limit of 55g/s for total emissions. | |
| On 1 February 2006, AEL and Queen Mary return process water storage dams overflowed towards the Vaal River and Schoonspruit after heavy rainfall over a period of two weeks. | Control mechanisms were investigated and have been implemented. | |
| Ergo | Severe erosion damage, after heavy rainfall, to construction works on side slopes of Daggafontein and Brakpan tailings facilities on 7 January, 12 February and 20 March 2006. | Alternative operation procedures have been implemented to finalise these earthworks. |
| Excessive dust blew off the BrakpanTailings Storage Facility (TSF) into the neighbouring community because of strong winds (21 May 20066). | The 540mt facility is being rehabilitated for final closure according to a detailed, approved closure plan. | |
| 15 December 2006 – A densitometer (an instrument used to measure slurry densities), was stolen from a radiation store at the Salvage Yard, Ergo. The densitometer contains a radioactive source as it uses radiation in its measurements and as such, could constitute a health threat if not properly disposed of. | After notifying the police, the Department of Health and relevant authorities, company representatives visited local scrap dealers to request their assistance in tracing the items and discuss the potential risks of radiation exposure from incorrect handling of the equipment. | |
| Sustainable Development Operations | A large fire took place in a vacant area adjacent to the Mispah TSF threatening the TSF vegetation on 1 June 2006. | Future timing of annual controlled fire break burning have been revised. |
| Mali | ||
| Sadiola | A slurry pipeline leak resulted in an area of approximately 20m2 being covered with tailings outside of the tailings facility fence. | The plant was immediately stopped, the spill cleaned up and deposited on the TSF. |
In line with its business principle and in terms of host country legislation, AngloGold Ashanti provides for rehabilitation and final closure of its operations during the operating life of the mine. (Rehabilitation refers to the process of reclaiming mined land to a pre-determined, post-mining use.) While final closure costs may only be fully determined at the time of closure, as at 31 December 2006 the total estimated liability amounted to $353 million (2005: $337.7 million). Depending on the laws of the various countries in which it operates, the company may or may not be required to provide assurance that these obligations will be met. The means by which this assurance is provided differs. For example in South Africa, the company maintains a Rehabilitation Trust Fund; in Ghana, a cash deposit is required and in the US, various reclamation bonds and letters of credit used are provided.
At the international level, mine closure planning remains a focal area of the ICMM’s work programme. The recently established project on ‘integrated mine closure’ addresses the integration of social, economic and environmental aspects in the closure process and will seek to develop good practice guidance around these issues. AngloGold Ashanti is participating in this process. The methodologies that are currently employed on the various sites have not been uniform owing to varying jurisdictional requirements and site-specific closure planning practices.
Closure plans are usually developed in advance of any mining being undertaken and are considered as part of the economic feasibility of any project. However, for many of AngloGold Ashanti’s older operations, closure plans had to be specifically developed. All of our operations now have closure plans which are reviewed and updated on a regular basis to take cognisance of operational conditions and developments, legislative requirements, international protocols and technological developments and advances in good practices. Our auditors have increasingly sought the advice of independent consultants to ensure that we have properly identified our overall liabilities for closure. Over time we intend to develop a more uniform approach to closure planning and accounting and audit all operations for conformance.
Because of international accounting practices and reporting requirements, the manner in which these liabilities have been provided differs from the way in which it was reported in the 2005 report. Long-term environmental closure obligations comprising decommissioning and restoration are based on the group's environmental management plans, in compliance with the current environmental and regulatory requirements. The provision for decommissioning represents the cost that will arise from rectifying damage caused before production commenced. The provision for restoration represents the cost of restoring site damage after the commencement of production.
Historically, training and awareness has been undertaken by including environmental issues in site-based induction programmes, and regular communication activities such as posters, newsletters, intranet sites, etc. However, ISO14001 requires a much more considered approach. Employees who perform tasks that have the potential to cause a significant environmental impact are required to be competent on the basis of appropriate education, training and/or experience. The operation is required to demonstrate, through the presence of records, that it has identified its significant environmental aspects, and assigned roles and responsibilities in managing these. It also has to show that it has provided the necessary training and awareness, not only to prevent incidents, but to illustrate the benefits of improved personal performance. Contractors are generally required to undergo site-specific induction and refresher training. In line with the company’s implementation of ISO14001, a far more comprehensive approach to training has thus been developed at an operational level.
| 2006 | ||||
|---|---|---|---|---|
| Region | Rehabilitation ($ million) | Decommisioning ($ million) | Total ($ million) | 2005 ($ million) |
| Argentina | 6.7 | 9.3 | 16.0 | 8.8 |
| Cerro Vanguardia | 6.7 | 9.3 | 16.0 | |
| Australia | 63.7 | 6.7 | 70.4 | 32.7 |
| Sunrise Dam | 26.6 | 5.3 | ||
| Boddington* | 37.1 | 1.4 | ||
| Brazil | 8.6 | 26.8 | 35.4 | 12.5 |
| AngloGold Ashanti Brasil Mineração | 7.5 | 22.6 | 30.1 | |
| Serra Grande | 1.1 | 4.2 | 5.3 | |
| Corporate | 2.1 | 0.0 | 2.1 | – |
| Corporate | 2.1 | 0.0 | 2.1 | |
| Ghana** | 20.4 | 24.6 | 45.0 | 47.1 |
| Iduapriem | 4.9 | 10.1 | 15.0 | |
| Obuasi | 13.5 | 14.5 | 28.0 | |
| Bibiani | 0 | 0 | 0 | |
| Cluff Resources (Ghana) | 2.0 | 0.0 | 2.0 | |
| Guinea | 15.1 | 13.3 | 28.4 | 8.5 |
| Siguiri | 15.1 | 13.3 | ||
| Mali | 7.00 | 10.2 | 17.2 | 13.4 |
| Morila | 2.9 | 2.3 | 5.2 | |
| Sadiola | 2.9 | 3.0 | 5.9 | |
| Yatela | 1.2 | 4.9 | 6.1 | |
| Namibia | 3.0 | 1.7 | 4.7 | 3.0 |
| Navachab | 3.0 | 1.7 | ||
| South Africa | 58.5 | 96.8 | 155.3 | 145.3 |
| Great Noligwa | 2.6 | 15.3 | 17.9 | |
| Kopanang | 3.1 | 18.6 | 21.7 | |
| Tau Lekoa | 1.2 | 6.6 | 7.8 | |
| Moab Khotsong | 3.6 | 15.7 | 19.3 | |
| TauTona | 3.3 | 13.7 | 17.0 | |
| Savuka | 0.5 | 4.9 | 5.4 | |
| Mponeng | 2.0 | 13.8 | 15.8 | |
| Legacy Projects – VR | 9.1 | 7.2 | 16.3 | |
| Legacy Projects – WW | 1.2 | 0.9 | 2.1 | |
| Ergo | 31.9 | 0.1 | 32.0 | |
| Tanzania | 22.5 | 34.3 | 56.8 | 44.1 |
| Geita | 22.5 | 34.3 | 56.8 | |
| USA | 48.1 | 3.0 | 51.1 | 22.3 |
| CC&V | 48.1 | 3.0 | ||
| Total | 255.7 | 226.7 | 482.4 | 337.7 |
| * | The Boddington operation was re-opened during the year |
| ** | The Bibiani mine in Ghana was sold during the year |
Decommissioning costs are provided for at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. When this provision gives access to future economic benefits, an asset is recognised and included within mining infrastructure. The unwinding of the decommissioning obligation is included in the income statement. The estimated future costs of decommissioning obligations are regularly reviewed and adjusted as appropriate for new circumstances or changes in law or technology. The estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money. Gains from the expected disposal of assets are not taken into account when determining the provision.
Gross restoration costs are estimated at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. The estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money. Restoration costs (anticipated) are accrued and expensed over the operating life of each mine using the units-of-production method based on estimated proved and probable mineral reserves. Expenditure (actual) on ongoing Restoration costs is brought to account when incurred. Increases in the provision are charged to the income statement as a cost of production.
The code is a voluntary industry initiative developed under the auspices of the United Nations
Environment Programme (UNEP) and the International Council of Mining and Metals (ICMM) to:
See www.cyanidecode.org for further information
In November 2006, AngloGold Ashanti hosted a Cyanide Workshop which was attended by cyanide code champions (senior metallurgists) and other staff from across the world. Also in attendance were prominent industry representatives including cyanide auditors, producers, suppliers and an ICMI Board member. The purpose of the meeting was to review progress in implementing the code, confirm the schedule for certification of the company’s operations and deliberate technical difficulties associated with compliance. The meeting was addressed by senior executives of the company, including the CEO, indicating the commitment by the company to comply with the Code.
Examples of the issues and challenges discussed include:
AngloGold Ashanti’s anticipated cyanide code certification schedule is shown alongside.
Feedback from the delegates during and at the end of the workshop was positive. In particular, the regional cyanide champions were afforded an opportunity to establish networks and contacts within the group, with suppliers, auditors and the ICMI. Importantly the cyanide champions were able to benchmark their regions against the other regions within the company and identify innovations to take back and implement at their own operations.
| Mine | Audit date/Proposed cyanide code audit date |
|---|---|
| July 2007 | Australia – Sunrise Dam |
| Q1, 2007 | South Africa –Mponeng, Savuka, Kopanang, Great Noligwa, East Gold Plant |
| US – CC&V | |
| Q3, 2007 | Brazil – Queiroz Plant, Corrego do Sitio, Serra Grande |
| Argentina – Cerro Vanguardia | |
| Q4, 2007 | Mali – Sadiola, Yatela, Morila |
| Q1, 2008 | Tanzania – Geita |
| Namibia – Navachab | |
| Q3, 2008 | Ghana – Iduapriem |
| Guinea – Siguiri | |
| Q4, 2008 | Ghana – Obuasi |
Communication and consultation with interested and affected parties is an integral part of the way in which we do business. This process is frequently mandated by local legislation. AngloGold Ashanti’s approach is documented largely in the community section of this report.
In respect of environmental issues specifically, much communication is carried out through official regulatory channels, supported by participation in a variety of local and regional forums. Apart from involvement in bodies such as the Chamber of Mines of South Africa, the Minerals Council of Australia and the National Mining Association in the United States, a number of our operations – particularly in Africa – have initiated annual stakeholder forums which provide an opportunity for communities to raise issues of concern and promote ongoing dialogue.
Key indicators of environmental performance for AngloGold Ashanti are:
In recent years, increasing attention has also been focused on issues relating to:
These and other issues have been considered by the Board Sub-committee, as well as executive and operational management.
The use of cyanide is a key component of the gold recovery process. While AngloGold Ashanti is aware of the possible negative impacts of cyanide, the company believes that responsible use is an important component in achieving the viability of orebodies and in sustaining gold mining operations. (See section on Implementing the cyanide code).
While it may be argued that the more cyanide is used, the greater the risk of environmental harm, this is overly simplistic. The efficiency with which cyanide is used, measured against ounces of gold produced, is also an imperfect measure as different ore types require varying concentrations of cyanide for optimal recovery. Nontheless, this information is provided in the table overleaf.
Total cyanide use decreased by 15% in 2006 to 28,319,714kg (2005: 31,059,555kg; 2004: 32,211,096kg).
| Operation | Usage (kg) | *Efficiency cyanide usage per ounce of production (kg/oz) | ||
|---|---|---|---|---|
| 2006 | 2005 | 2006 | 2005 | |
| Argentina | ||||
| Cerro Vanguardia | 533,333 | 560,000 | 2.30 | 2.46 |
| Australia | ||||
| Sunrise Dam | 1,720,074 | 1,671,551 | 3.70 | 3.67 |
| Brazil | ||||
| AngloGold Ashanti Mineraçao | 1377,000 | 1,071,000 | 1.56 | 4.28 |
| Serra Grande | 280,000 | 288,500 | 1.44 | 1.50 |
| Ghana | ||||
| Obuasi | 4,924,014 | 4,047,000 | 12.72 | 10.35 |
| Iduapriem | 1,128,000 | 1,378,000 | 5.75 | 6.72 |
| Guinea | ||||
| Siguiri | 21,461,000 | 3,354,000 | 4.85 | 11.61 |
| Mali | ||||
| Morila | 2,324,000 | 2,082,000 | 4.49 | 3.18 |
| Sadiola | 32,848,800 | 5,369,000 | 5.70 | 12.15 |
| Yatela | 964,000 | 846,000 | 2.73 | 3.45 |
| Namibia | ||||
| Navachab | 908,000 | 814,441 | 10.56 | 10.05 |
| South Africa | ||||
| West Wits | 1,477,355 | 1,311,609 | 1.27 | 1.15 |
| Vaal River | 3,845,447 | 3,773,248 | 2.76 | 2.46 |
| Tanzania | ||||
| Geita | 2,965,870 | 2,497,400 | 9.63 | 4.07 |
| USA | ||||
| CC&V | 2,562,821 | 1,995,806 | 9.06 | 6.05 |
| Group | 28,319,714 | 31,059,555 | 4.26 | 4.33 |
| (1) | Reduction in consumption was the result of changeover from ultra-fine milling process to sulphide roasting process for sulphide gold recovery. |
| (2) | Reduction in consumption is attributed to changeover from heap leaching gold processing to CIL and a change in pH control philosophy. |
| (3) | Reduction in consumption attributed to a significant decrease in the ratio of sulphide ore processed. |
| * | Based on 100% of production. |
AngloGold Ashanti focuses much attention on preventing pollution by managing the concentration of residual cyanide in waste streams. Compliance with the Cyanide Code provides a comprehensive assurance of good management and acceptable mitigation of risk.
The mining industry by its very nature is a significant user of natural resources and commodities and the consumption of fuel, electricity and water can significantly affect the total cost of mining. AngloGold Ashanti has plans in place to improve the efficient use of resources and our over-arching philosophy is that this optimisation is best managed at site level where staff understand the requirements of the operation and can identify needs and reduce wastage. Thus, environmental targets are also established by the individual mines to reflect the priorities and risks unique to each operating unit. Owing to variations in site conditions, as well as mining and treatment processes, resource use efficiencies differ greatly between operations and it is therefore difficult to establish any meaningful company-wide benchmarks.
Water management and the prevention of pollution (particularly groundwater seepage) remain key concerns across all operations, although the issues are very region specific (for example, issues in high rainfall areas are very different to those in arid areas). There are two main themes in water management: water consumption and water quality (which includes issues such as acid rock drainage and discharges from tailings dams).
Some of the most significant water management issues within the company are:
Total fresh water usage at AngloGold Ashanti operations in 2006 amounted to 79,653,998m3. (2005: 81,805,608m3; 2004: 90,363,232m3).
The following table reports on the efficiency of fresh water usage by AngloGold Ashanti in 2006:
| Operation | Usage (m3) per annum | *Efficiency – water usage per ounce of production (m3/oz) | ||
|---|---|---|---|---|
| 2006 | 2005 | 2006 | 2005 | |
| Argentina | ||||
| Cerro Vanguardia | 939,647 | 4964,307 | 4.05 | 4.23 |
| Australia | ||||
| Sunrise Dam | 2,254,970 | 52,319,654 | 4.85 | 5.10 |
| Brazil | ||||
| AngloGold Ashanti | 3,371,455 | 3,827,904 | 13.93 | 15.31 |
| Mineraçao | ||||
| Serra Grande | 367,920 | 388,944 | 1.90 | 2.03 |
| Ghana | ||||
| Obuasi | 13,620,000 | 15,670,000 | 35.19 | 40.08 |
| Iduapriem6 | 100,000 | 100,000 | 0.51 | 0.49 |
| Guinea | ||||
| Siguiri | 2,939,059 | 3,717,191 | 9.76 | 12.86 |
| Mali | ||||
| Morila | 2,240,689 | 2,236,373 | 4.33 | 3.41 |
| Sadiola | 8,508,907 | 6,543,000 | 17.02 | 14.80 |
| Yatela | 12,894,880 | 12,079,736 | 36.53 | 49.30 |
| Namibia | ||||
| Navachab | 938,000 | 1,031,554 | 10.91 | 12.74 |
| South Africa | ||||
| West Wits | 8,530,177 | 8,200,289 | 7.36 | 7.19 |
| Vaal River | 18,567,997 | 18,884,489 | 13.32 | 12.30 |
| Tanzania | ||||
| Geita | 2,348,666 | 4,268,816 | 7.63 | 6.96 |
| USA | ||||
| CC&V | 2,031,631 | 1,573,411 | 7.18 | 4.77 |
| Group | 79,653,998 | 81,805,668 | 11.97 | 11.42 |
| (4) | Correction to previously published 2005 data, where a number of recycle streams were included. |
| (5) | Correction to previously published 2005 data, where CTD recycled water was included. |
| (6) | Estimate of annual groundwater abstraction, nil abstraction from other sources. |
| * | Based on 100% of production. |
AngloGold Ashanti has, as a member of the ICMM, committed to the ICMM’s position on climate change. This position states that ICMM members:
AngloGold Ashanti has appointed an in-house working group to consider climate change taking into considerion the moral/environmental, economic, political, reputational and practical considerations of this issue.
The issue was also debated at the 2006 Environmental Workshop and we are looking to development of a way forward for, firstly, collection of GHG emissions data and then, secondly, a plan of action to reduce GHG emissions.
AngloGold Ashanti’s mining activities require significant amounts of energy, which is drawn from a variety of sources, but which are predominantly fossil-fuel generated. Given both the cost, and greenhouse gas emissions, it is in the company’s best interests to both minimise and ensure the most efficient use of energy that is used.
AngloGold Ashanti has been monitoring the debate around the renewable energy market, including the use and trading of renewable energy certificates. The company does not envisage conventional energy sources being wholly replaced with renewable energy sources, it is involved in the generation of some of its own renewable energy. These renewable energy options include down-shaft generators in the deep South African mines (See Report to Society 2005 Energy conservation gains renewed impetus in the South Africa region and case study: Hydro-electric power generation in Brazil). Alternative energy sources explored in 2006 include the use of wind power generation, as well as the conversion of the powerhouse to LNG at Sunrise Dam in Australia (See case study: Wind power at Sunrise Dam). Some wind-powered options have also been investigated at CC&V in Colorado. On an experimental basis, the company is also investigating the possible use of biodiesel fuels as alternatives to conventional petroleum sources.
AngloGold Ashanti’s total energy consumption from all sources was 29,798,654GJ in 2006.
(2005: 28,210,286GJ and 2004: 31,203,528GJ.)
The following table reports on the efficiency of energy usage by AngloGold Ashanti:
| Operation | Energy usage (GJ) | *Efficiency – energy usage per ounce of production (oz) | ||
|---|---|---|---|---|
| 2006 | 2005 | 2006 | 2005 | |
| Argentina | ||||
| Cerro Vanguardia | 208,599 | 215,718 | 0.90 | 0.95 |
| Australia | ||||
| Sunrise Dam | 2,275,396 | 2,149,981 | 4.89 | 4.73 |
| Brazil | ||||
| AngloGold Ashanti Mineraçao |
499,693 | 501,401 | 2.06 | 2.01 |
| Serra Grande | 221,004 | 205,903 | 1.14 | 1.07 |
| Ghana | ||||
| Obuasi | 1,945,707 | 1,891,882 | 5.03 | 4.84 |
| Iduapriem | 286,007 | 354,783 | 1.46 | 1.73 |
| Guinea | ||||
| Siguiri | 1,959,489 | 71,995,135 | 6.51 | 6.90 |
| Mali | ||||
| Morila | 2,382,446 | 2,494,728 | 4.60 | 3.81 |
| Sadiola | 1,014,217 | 887,232 | 4.14 | 2.01 |
| Yatela | 81,303,928 | 449,771 | 3.69 | 1.84 |
| Namibia | ||||
| Navachab | 235,961 | 183,284 | 2.74 | 2.26 |
| South Africa | ||||
| West Wits | 6,203,944 | 6,322,597 | 5.35 | 5.55 |
| Vaal River | 7,424,668 | 7,329,634 | 5.33 | 4.78 |
| Tanzania | ||||
| Geita | 2,538,335 | 1,899,936 | 8.24 | 3.10 |
| USA | ||||
| CC&V | 91,299,258 | 1,328,301 | 4.59 | 4.03 |
| Group | 29,798,654 | 28,210,286 | 4.48 | 3.94 |
| * | Based on 100% of production. |
| * | Includes non-product uses on site such as mine accommodation and laboratories, but excludes Ergo, corporate offices and exploration activities. |
| (7) | Correction to previously published 2005 data, where fuel used for mobile equipment wasexcluded. |
| (8) | Increase on 2005 attributed to pit deepening and expansion activities. |
| (9) | Includes energy derived from secondary use of spent oils that were burnt for heating. |
Efforts to control dust emissions from the Vaal River sulphur paydam, which is being reclaimed to recover pyrite and gold, have been subject to further scrutiny during 2006. (See case study in Report to Society 2005: Dust management at Vaal River.)
The binding agent ligno-sulphonate, which was sprayed on the surface of the dam during 2005, was found to be ineffective during the rainy season because it is water-soluble. Further research was carried out during 2006 on a number of alternative dust suppressants, the most effective of which was determined to be ridge ploughing. Instead of using ligno-sulphonate which dissolved in the heavy rains, contour ridge ploughing is now being used to create ridged mounds on the flat surface of the dam, thereby also making it less susceptible to wind disturbance.
In respect of dust suppression on the paydam’s road surfaces, trials were carried out during 2006 on the use of waste ash from the boilers at the South Uranium Plant. The study revealed that the ash becomes hard when water is applied to its surface, making it an ideal road cladding substance. Following analysis, it has subsequently been approved by the Nuclear Energy Corporation of South Africa (NECSA) and accredited laboratories as an environmentally safe dust suppression agent. Ash has already been deposited at the sulphur paydam, ready for application in 2007.
With regards to monitoring, single dust buckets to monitor emissions have been increased from 17 to 23 and two more wind directional buckets (to ascertain from which direction the dust emanates), have been installed, bringing their total to six. These monitoring mechanisms will be key in determining the dust contribution from mines to the north and east of the paydam –although the extent of this can only be confirmed after monitoring over an entire seasonal cycle has been completed.
Climate change has become an increasingly contentious issue globally. A position has been rigorously debated within the ICMM and by virtue of its membership, AngloGold Ashanti is party to and supportive of this position. (See box above). The issue continues to be discussed at the highest levels within the company, while at the same time operations are seeking to improve energy efficiencies to curb our contribution to carbon emissions. The company has also participated in discussions around the development of the carbon market and is considering ways in which it could meaningfully participate.
The threat to biodiversity as a result of habitat destruction and other human related causes has been a high profile international environmental issue for many years. Through the ICMM we have been engaged in a formal dialogue with the IUCN (World Conservation Union). A significant output from this dialogue has been the recent publication of ‘Good Practice Guidance for Mining and Biodiversity’. The best practice guidance is designed to integrate biodiversity considerations through all stages of the mining lifecycle, from exploration, through environmental impact assesments (EIAs), to operations and eventually rehabilitation and closure. To date, most of our corporate efforts have been focused on the development of this material in a practical form.
Biodiversity has not been a priority issue for our operations although potentially this could directly affect our future access to land and to capital. The global conservation estate has now grown to cover some 13% of the world’s land surface and 0.5% of the world’s oceans; much of this in remote wilderness areas which are of direct interest to minerals exploration.
Since its inception, the ICMM has been pursing a course of open and constructive dialogue with the IUCN. After consultation with its membership, and as a demonstration of good faith immediately prior to the World Parks Congress (in September 2003), the ICMM made a public statement acknowledging that there may be special areas within the world that may be considered ‘off limits’ to mineral development included a commitment not to mine or explore in existing World Heritage Sites. In June 2005, our exploration staff completed an exercise comparing our current exploration and mining leases with the UNEP_WCMC’s (World Conservation Monitoring Centre) database of protected areas. A number of areas of overlap were identified.
There are no overlaps between our exploration projects and existing World Heritage Sites, but the Asacha joint venture project in Kamchatka, Russia borders on a World Heritage Site. There are also some overlaps with IUCN listed protected areas, particularly in Colombia and Tanzania. In Ghana, the issue of mining in protected forest reserves remains a sensitive issue. In Brazil, the status of the Atlantic Forest ecosystems, where the majority of our South American mines are located, continues to be a significant concern. In 2006, 34 hectares of Atlantic Forest were affected by mining activities, including those of the Cuiabá Expansion project for the establishment of a new tailings storage dam. This land clearing process was compensated by the creation of a natural reserve (RPPN – Private Natural Forest Reserve) totalling 729 hectares on Cuiabá mine property. The area consists of Atlantic Forest in an excellent state of preservation. This supplements the companies’ existing contributions to areas such as the Mata Samuel de Paula reserve at Nova Lima (see case study: Preserving natural forests – Mata Samuel de Paula reserve at Nova Lima, Report to Society 2004). In the USA and Australian operations, our focus has been assessing the possible occurrence of rare and endangered species on our mining leases.
In the course of the ICMM – IUCN dialogue, the mining industry has been working to improve its relationship with the international conservation community, seeking to reduce the number of land disputes and demonstrating that it is capable of carrying out its business in a responsible manner and contribute positively to the conservation of the world’s biodiversity. The ‘Good Practice Guidance for Mining and Biodiversity’ details how this is possible. While AngloGold Ashanti has done some work in the area, it acknowledges that still more needs to be done and will – during 2007 – be seeking to work, in partnership with respected conservation organisations, on a strategy to help us roll out further programmes at our operations. The emphasis of these efforts needs to lie at the local operational level where tangible results can be achieved.
AngloGold Ashanti is committed to participating in the debate on environmental matters at an international, national and local level. The group actively participates in the ICMM and the Global Reporting Initiative (GRI) of which it is an organizational stakeholder. (See the section on Ethics and Governance.)
Andrew Mackenzie is the company’s representative on the Environmental Stewardship and Biodiversity Working Group of the ICMM. The environmental stewardship work programme is aimed at enhancing the industry’s environmental performance. Because of the nature of the mining and minerals industry, much of its work is carried out in parts of the world which boast rich natural resources and are often environmentally sensitive. We have a duty of care to ensure our industry behaves in a sustainable way, to ensure we continue to reap the benefits of the earth’s wealth without damaging its sensitive ecosystems. Alongside this aim is the need to work effectively with governments and local communities in order to make sure that environmental criteria do not restrict future access to mineral and metals wealth. In line with the Sustainable Development Framework, ICMM’s members are obliged to contribute to the conservation of biodiversity and integrated approaches to land use planning as well as respect legally designated protected areas. The taskforce is currently working on projects in the following areas:
AngloGold Ashanti Annual Report 2006 - Report to Society