Review of 2007

Introduction

As a minimum, AngloGold Ashanti undertakes to adhere to the environmental laws, regulations and permitting requirements in all the countries in which we operate. But we want to go further than that:

• all operations are also required to abide by our business principles and environmental policies and act in line with industry and voluntary agreements and principles to which the group is bound;
• all operations are expected to maintain certification to the ISO14001 environment standard and to pursue the objectives and targets which they have established, thereby addressing their significant environmental aspects and demonstrating their commitment to continual improvement; and
• as a group, we will participate at a national and international level in developing voluntary guidelines, codes and performance targets so as to improve the understanding, knowledge and performance of our company and the industry as a whole.

We are also committed to communicating and consulting with our various stakeholders as we are mindful of the fact that our operations can and do have an impact on our host communities. A great deal of interaction occurs through established, regulatory channels, over and above our participation in a variety of local, regional and international forums. Apart from our involvement in state and national mining associations, most of our operations have in place stakeholder forums that provide an opportunity for communities to raise issues of concern and promote ongoing dialogue.

As a member of the ICMM, AngloGold Ashanti subscribes to the sustainable development framework and its principles for sustainable development, and is committed to publicly reporting its performance.

While AngloGold Ashanti does not actively seek awards for its work in respect of the environment, we are pleased to have been recognised on a number of occasions during the year:

• Serra Grande in Brazil was awarded a State Medal for Best Environmental Performance – Mining Industry, by the Goiás State government.
• Ghana’s Environmental Protection Agency (EPA) has named Iduapriem Mine as the winner of the Best Reclaimed Mine Award for 2007. See case study Rehabilitation success at Iduapriem.
• Sunrise Dam Gold Mine in Australia received a certificate of merit in the Golden Gecko award system for its work on setting up a wind power system. See case study Sunrise Dam receives recognition for wind power initiative.
• CC&V in the USA has been recognised as a 2007 Senior Participant with Special Recognition in the Pollution Prevention programme sponsored by the State of Colorado and Colorado Mining Association (CMA).
• The AngloGold Ashanti’s US-based operation, AngloGold Ashanti Nevada, received a Nevada Excellence in Mine Reclamation Award for Innovation in Reclamation Techniques from the State of Nevada.
• CC&V was recognised by the Colorado Mining Association/Colorado Division of Reclamation Mining and Safety Colorado Mined Land Reclamation Award, for its voluntary reclamation of the Independence Mill Tailings.
• Geita Gold Mine received the Tanzanian Presidential Award for Environmental Management in March 2007.

Management of the environment

At the board level, responsibility for environmental issues lies with the Board Committee on Safety, Health and Sustainable Development. The committee, comprising three non-executive directors, meets on a quarterly basis and selected members of management are invited to participate in these meetings. Other non-executive directors are welcome to attend and do so.

At an operational level, line management is responsible for environmental performance, with accountability vested in the general manager at each site. Significant incidents as well as major changes in legislation and/or operating conditions which could have an impact on performance or compliance are escalated for consideration by the company’s Executive Committee (Exco).

At both regional and site levels, environmental specialists guide and oversee environmental issues. The heads of the environmental discipline in each of the company’s regional offices participate in an Environmental Steering Committee, led by a central environmental function at the corporate office, which identifies and debates critical environmental issues facing the company, and develops appropriate company responses to these challenges. This committee meets on a regular basis, most recently in December 2007.

The corporate environmental function is responsible for reporting environmental performance to the Board Committee. The function initiated a series of audits at all operations during the year. (See discussion below and the case study on the CERP audits). This function played a key role in the development of an AngloGold Ashanti position on climate change that was considered and debated at a group workshop attended by the CEO, the Environmental Steering Committee and other key participants in the group responsible for company policy and its implementation. (See case study on AngloGold Ashanti and climate change).

The corporate environmental team also produced a set of five environmental guidelines during the year to be used in conjunction with the group’s environmental policy. The guidelines cover management of water, air quality, waste material, chemicals and land. A number of other guidelines are currently under consideration and will be produced as and when required.

Environmental structures within the company

Environmental performance

All AngloGold Ashanti operations have had their environmental management systems certified in conformance with the ISO14001 standard, and all the requisite permits for their current operations are in place. The primary areas of activity and concern in respect of performance are discussed below. Further site-specific information may be found in the country and operational reports.

Environmental performance is more than compliance with regulations and company policy. It is a tangible demonstration of an operation’s understanding of both its positive and negative impacts and visible actions to address these.

Environmental Management Systems

ISO14001

Following a company decision that all AngloGold Ashanti operating mines should attain certification to the ISO14001 environmental management system standard, all of our operations were certified by the end of 2007. Navachab mine was certified in March 2007 and Yatela mine, which was previously scheduled for closure but the life of which has now been extended, was certified in November 2007. In December 2007, AngloGold Ashanti Health, a subsidiary of the company that provides healthcare services to employees in South Africa, was also recommended for certification. (See case study ISO14001 certification for AngloGold Ashanti Health). The exploration department, which had previously indicated its intention to seek ISO14001 certification, now intends implementing an integrated health, safety and environmental management system and has therefore postponed seeking certification.

During the year, previously certified sites were audited by external parties in terms of six-monthly or annual surveillance audits and all sites have successfully maintained their ISO14001 certification.

The implementation of ISO14001-certified systems has proved to be valuable from both a management and reputational perspective. The ISO14001 EMS provides a robust, consistent and auditable system, that is a valuable resource both at a site and group level. Certification is also useful from a regulatory perspective. In Brazil for example, the Goiás state environmental agency will grant operations that maintain their certification an extension of up to 10 years on their environmental licences.

Corporate Environmental Review Programme (CERP)

In line with increasingly stringent governance and risk management requirements at a company level, AngloGold Ashanti initiated a Corporate Environmental Review Programme (CERP) during the year. (See case study on Corporate Environmental Review Programme progress). Operations will be regularly audited, with the focus of audits changing each time. In 2007 the focus was on the ability of the ISO14001 systems and other management processes to deliver on the intent of the environmental policy. The programme reviewed whether all significant environmental aspects had been identified and whether appropriate monitoring systems had been established to manage these aspects, including suitable monitoring systems.

The results of the CERP will be used as the basis for a company-wide environmental award. The first award is planned to be made in in the first quarter of 2008.

Incident reporting

Operations are required to report all significant incidents to the corporate office within 24 hours, and a summary of these reports is submitted quarterly to the company’s Exco and the Board Safety, Health and Sustainable Development Committee.

Details of incidents reported to the corporate office are disclosed below. In the spirit of encouraging disclosure, and as a consequence of the broad corporate definition and varying on-mine definitions of significant incidents, many incidents are reported that, in most companies, would not be classified as significant.

Major incidents are reported to the Board. At AngloGold Ashanti, a major incident is defined as one which could affect the company’s reputation or which results in a cost to the company exceeding US$100,000 including fines, compensation, clean-up, loss of production, anticipated litigation costs, etc.

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 nature either extensive or likely to have long-term effects
• Cyanide-related incidents
• Tailings dam failures
• Spillages or leakages with impacts beyond the company’s designated containment areas – of tailings materials, hydrocarbons, acids and other chemicals
• Emissions beyond permitted levels e.g. atmospheric and effluent releases
• Dust emissions which may impact on the company’s reputation
• Wildlife mortalities and land clearing activities which may impact on the company’s reputation.

Significant environmental incidents 2007

Date	Operation	Nature of the incident	Action taken
Ghana
25 Feb	Obuasi	A tailings spillage occurred as a result of pressure build-up in a weak tailings pipeline at Nkwadum, a suburb of Obuasi, which affected land, water and vegetation.	Procedures have been developed to ensure that pipelines that have become weak are identified and replaced. Pipelines are also to be rotated during scheduled maintenance.
29 March	Obuasi	A flat-bed trailer combination, operated by a contractor and transporting cyanide to the mine from the port at Tema 300km away, fell on its side when the driver of the vehicle lost control in Obuasi town. The metal containers remained intact and no cyanide spillage or ground contamination occurred.	The overturned truck was removed. A water sample taken from a stream close to where the accident occurred confirmed that there had been no impact on the river resource from cyanide.
April	Obuasi	Frequent bursting of the Oda River raw water supply pipelines (attributed to weakening of pipe lining and rust) caused serious damage to houses and farms in the area.	Plans are under way to replace old pipes and redirect some of the lines. Compensation has been paid to affected households and farmers.
April	Obuasi	Sediment accumulation from the Dokyiwa tailings dam (part of the Sansu TSF) caused flooding of the Nyam River. Complaints about destruction of farms have been received from about 170 individual farmers in the Nyam River communities.	Investigation of claims included visits to farms and soil and water sampling. Test results could not establish any link to AngloGold Ashanti’s operations. Flooding was a nationwide phenomenon during the year as rainfall levels were exceptionally high in all regions. It has, however, been recommended that the remaining portion of the river be dredged to drain the flood-prone areas and farmlands.
1, 2 May	Obuasi	Slurry from the Kokoteasua tailings re-treatment facility flooded houses downstream of the dam. Investigations revealed that the Kokoteasua drainage stream was already silted up with tailings material and that dredging of the drain had only been completed part of the way thus resulting in flooding.	Continued dredging of the drain has been recommended and compensation has been paid.
12 June	Iduapriem	Block 2 & 3 TSF discharged polluted water to the environment. This was detected in the course of routine surface water monitoring where high turbidity and high pH values were picked up in a publicly accessible water course. Heavy rainfall, inadequate capacity and irregular inspection of the facility were root causes of the incident.	The embankments of the TSF have been raised and other potential points have been identified and sealed. The Ghana EPA was notified.
6 Sept	Obuasi	Following the ongoing illegal discharge of cyanide-and arsenic-contaminated water to the environment, and a series of prior warnings, the Ghanaian EPA issued an Enforcement Notice for the closure of the Sansu and Pompora Tailings Storage Facilities and all ancillary facilities. Operations were stopped for a period of 12 days.	The sanction was lifted on 26 September, following compliance inspections by the EPA and submission of an action plan by mine management.
28 Sept	Obuasi	Collapse of a process water storage tank resulted in spillage of contaminated water to the environment when portions of the reinforced steel used to support the storage tank were stolen.	The tank was rebuilt. 24-hour security coverage is required to protect the facility and prevent further theft.
9 Dec and 23 Dec	Obuasi	On two occasions a tailings pipeline from South Processing to Sansu Tailings dam was vandalised in an attempt by small-scale miners to obtain gold.	Engaging with small-scale miners is a long-term process for the company. In an effort to protect property, however, the following is being undertaken or is under consideration: intensifying security patrols to deter intruders from re-vandalising and regular patrols of the newly created access road; installation of leak detectors to detect flow variations; engaging local villagers for security; and fencing the pipelines.
Namibia
13 Feb	Navachab	About 400 litres of hydraulic oil were spilled from a dozer after damage to the machine caused by large boulders.	Namibian law requires that oil spills above 200ℓ be reported to government. Oil-contaminated soil was removed and placed in a hydrocarbon waste site and the formal notification papers were filed with the relevant authorities.
21 Feb	Navachab	An excavator loading on a temporary ramp had its main supply pipe of hydraulic oil to the pump damaged by a rock resulting in 700 litres of hydraulic oil being spilled.	The spill was reported to the Namibian authorities. Oil-contaminated soil was removed and placed in a hydrocarbon waste site.
29 Nov	Navachab	After refuelling, but without decoupling the filling nozzle, a heavy vehicle driver drove off, causing the coupling to be torn off the hose, resulting in about 700litres of diesel being spilled over a distance of 2 kilometres.	The authorities were notified. Retraining has been conducted regarding standard operating procedures.
South Africa
Jan to Dec	Vaal River	The daily average of SO2 emissions from the stack, as measured by the in-line stack analyser, exceeded the Registration Certificate’s limit of 40 g/s on a number of occasions at the EGAF plant.	Repairs on the acid plant will minimise SO2  leakages. During plant start-up it is expected that daily limits will be exceeded until the plant is running at full capacity. Shutdowns occurred on a number of occasions during the year as a result of power outages, pyrite shortages and plant maintenance. Continued optimisation of operating conditions is being undertaken to minimise emissions.
2 to 22 Jan	West Wits	Intermittent overflow of the North Boundary Dam into Blyvooruitzicht Canal, leading into the Wonderfontein Spruit.	Study on capacity requirements to be completed by the end of January 2008. Water Steering Committee revived to deal with regional integrated control of the water inventory.
21 Jan	Vaal River	A tailings pipe from Noligwa Gold Plant failed near the 8 shaft bridge and approximately 150 tonnes of tailings were spilt.	Most of the spill was contained within the spill paddock. Corrective actions included: an assessment to determine whether pipes in sensitive areas are tested frequently enough; replacing pipe lengths which are below the required standard; opening up and cleaning around pipelines to enable thickness testing of pipes to be conducted correctly; and increasing lining of pipes to ± 100m on both sides of the sensitive area.
9 Feb	Vaal River	A suspected leak on the CIL cyanide delivery pipeline was detected.	Cleaning, detoxifying and sealing of the pipe; installation of the new section of pipe as per the cyanide guidelines; analysis of soil samples as per the cyanide guidelines; and treatment of contaminated soil.
21 Feb and 13 Mar	Vaal River	On two occasions, the No 8 Settling Dam overflowed into adjacent land. There was no visible evidence of water entering the Vaal River.	Settling dams cleared of silt to restore capacity; monitoring of efficiency of reservoir pumps to Kopanang plant; mill control room staff to inform central control room when the reservoir level reaches 80%; pumps installed in trenches at Noligwa plant to reduce the quantity of water sent to reservoirs.
1 April	Vaal River	Tailings overflowed a bund containment area towards the Queen Mary Dam from the West Gold Plant. This was caused by a hydraulic delivery valve failing to close while the residue pumps were being changed from one set to another.	All spillage pumps were checked and upgraded; bund wall or berms to be built to direct tailings to spillage pump area; hydraulic system to be upgraded and daily inspections carried out on hydraulic valves; stand-by pumps changed weekly to ensure that pumps are in good working order; Queen Mary Dam and surrounding area affected by spillage cleaned.
12 June	West Wits	A leak in the Mponeng Projects Oil Store bund wall was detected. Hydrocarbons and water leaked into soil and oily substance ran down to concrete lined area, and was deposited into the storm water trench and East Holding Dam.	A bund wall is currently being built at the Projects Oil Store. Consultants have been contracted to bioremediate the soil that was affected by the hydrocarbon spillage, and to clean up the store.
15 June	Vaal River	A drain valve on the Final Residue delivery line to the tailings dam failed, resulting in tailings filling and overflowing the bund, and exiting the plant boundary towards and into the Queen Mary Dam.	Spillages have been remediated, and a bund wall to direct  spillage to a spillage sump has been built.
19 Sept	Vaal River	A spillage in the flotation section of the Great Noligwa plant occurred due to an acid conditioning tank failure. The bund area was 75% full at the time, resulting in the bund area overflowing into the plant.	Immediate clean-up of the area was initiated. The capacity of the drain pump has been increased to ensure availability of the bund capacity at all times. The bund storage capacity is also being re-evaluated.
27 Sept	Vaal River	The Bokkamp Dam overflowed after heavy rain fell on the West Complex and West Extension Tailings Storage Facilities catchments area. Contaminated water was discharged.	The West Complex Emergency Dam is being constructed (expected completion date: September 2008). An emergency response plan for return dams overflowing is being prepared.
2 Oct	Vaal River	Water from West Acid Flotation and Uranium and West Paydam (New Bokkamp Emergency Dam) to Queen Mary spillage dam flowed out through the suction pipeline to the pump station and Schoonspruit when a section of pipe was stolen. Contaminated water discharged.	Stolen pipes were replaced and flanges were welded. The frequency of pipe patrols in this area has been increased. An emergency response plan for return dams overflowing is being prepared.
2 Oct	Vaal River	The Kopanang return water dam overflowed after heavy rain and excess water (600 m3) was decanted. Contaminated water discharged.	Sluice gate installed to manually divert water to Mispah. An emergency dam was installed. The feasibility of installing a pipeline from Mispah 1 pump station to the West Complex Emergency Dam is being investigated.
18 to 25 Oct	Vaal River	Contaminated water was discharged from Skelm Dam.	The West Complex Emergency Dam is being constructed (expected completion date: September 2008). An emergency response plan for return dams overflowing is being prepared.
19 to 21 Oct	Vaal River	The Mispah storm water dam overflowed after heavy rainfall, discharging an estimated 15,000m3 of water. Contaminated water discharged.	The Vaal River Water Steering Committee is to facilitate communication between role players to achieve effective water balance management. A formal procedure to define roles and responsibilities with regards to the distribution of process water specifically during abnormal conditions is being prepared.
7 Nov	Vaal River	Central Spillage Dams overflowed due to EGAF and Kopanang Plant’s pumps not running. Approximately 250m3 of process water overflowed into the environment. Contaminated water discharged.	The feasibility of installing high water level warning systems at plants and tailings facilities is being investigated.
22 Nov	Vaal River	The No 8 reservoirs overflowed after heavy rainfall and Noligwa Plant released water to the reservoirs. Approximately 2,500m3 water spilled into the surrounding land. Contaminated water discharged.	It is planned that the Stop/Start Mispah water pumps will maintain levels between 60-80% in eight settling dams and that the reservoir’s pumps to Kopanang gold plant will be more rigorously monitored. In the event of pump inefficiency occurring, this will be communicated to affected parties. A pump has been installed into the backfill trench to stop spillage in the trench from being released into the reservoir.
3 Dec	Vaal River	The No 8 reservoirs overflowed. Approximately 1,500m3 water spilled into the surrounding land.
5 Dec	West Wits	North Boundary Dam: contaminated water discharge.	Study on capacity requirements to be completed in early 2008.
Tanzania
26 June	Geita	19 cattle died as a result of drinking cyanide-bearing solution from the TSF. The cattle were unattended and strayed into the area through a breach in the fence.	Tailings deposition was immediately diverted back to the north west corner, the fence was mended and 24-hour supervision introduced.

Fines and legal sanction

No significant fines were received by the company in relation to non-conformance with environmental laws and regulations. Ongoing illegal discharge of cyanide and arsenic-bearing water to the environment resulted in the Ghanaian Environmental Protection Agency issuing an Enforcement Notice for the closure of the Sansu and Pompora Tailings facilities for a period of 12 days.

Mine closure

A key consideration for the company is the fact that, at some point, all mining operations will cease. With this in mind, the evaluation of all new projects considers closure planning and the associated costs as part of the economic feasibility of the project. For many of the older mines, closure planning and the evaluation of environmental liabilities is a more complex process. This is particularly the case in Brazil, Ghana and South Africa, where many of the long-life operations present environmental legacies that may have developed over a century or more.

Closure plans, which are reviewed and updated annually, are in place at all operations. These plans take into account operational conditions, planning and legislative requirements, international protocols, technological developments and advances in good practice. In addition, an assessment of closure liabilities is undertaken and reviewed on an annual basis and, increasingly reviewed and assured by independent third parties.

Significant issues that have come to light during recent evaluation are:

• The variations that exist between the accounting estimate for closure at the South African operations and the closure estimate undertaken in line with Department of Minerals and Energy guidelines (which requires that provision be made for premature closure). Appropriate guarantees are being put in place to ensure that the potential liabilities can be met in the unlikely event that these operations close prematurely.
• The closure liability estimate for Obuasi has been reviewed in far greater detail than before, establishing a repeatable process to build on in future, and resulting in a much larger liability being reflected. Among the reasons for this are the improved understanding of the quantity of decommissioning work following the completion of a survey exercise and a refined scope of works and associated rates for rehabilitation.

Environmental expenditure

Environmental expenditure is considered as an integral part of the viability and operation of our projects and mines – from exploration and feasibility studies, to construction and development, to operation and final closure. Aspects of this expenditure, such as rehabilitation, training and development, auditing and certification – are considered as operating expenses and are viewed as a fundamental part of the operating costs, not as an add-on or as corporate social investment. Thus ongoing environmental expenditure is accounted for at an operating level and cannot be reported separately and meaningfully at a group level.

Financial provision

AngloGold Ashanti makes financial provision for the 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 actual closure costs may only be fully determined at the time of closure, as at 31 December 2007, the total estimated liability amounted to $445.8 million (2006: $482.4million).

Rehabilitation and decommissioning liabilities and provisions (US$ million)

Region/operation	Liabilities 2007			Liabilities 2006
	Rehabilitation	Decommissioning	Total*
Argentina	17.3	32.6	49.9	16.0
Cerro Vanguardia	6.6	7.0	13.5	16.0
Australia	40.8	6.8	47.6	70.4
Sunrise Dam	19.4	5.7	25.1	31.9
Boddington	21.4	1.1	22.5	38.5
Brazil	10.7	25.6	36.4	35.4
Brasil Mineração	8.7	21.2	29.9	30.1
Serra Grande	2.0	4.4	6.5	5.3
Ghana	43.9	29.8	73.7	45.0
Iduapriem	12.2	7.6	19.8	15.0
Obuasi	29.9	21.3	51.3	28.0
Cluff Res (Ghana)	1.7	0.8	2.6	2.0
Guinea	17.9	17.8	35.7	28.4
Siguiri	17.9	17.8	35.7	28.4
Mali	9.7	14.4	24.1	17.2
Morila	2.3	1.6	3.9	5.2
Sadiola	5.1	6.6	11.7	5.9
Yatela	2.8	6.2	8.5	6.1
Namibia	1.6	1.6	3.3	4.7
Navachab	1.6	1.6	3.3	4.7
South Africa	54.9	72.4	127.3	155.3
Great Noligwa	3.8	13.4	17.3	17.9
Kopanang	4.0	13.9	17.9	21.7
Tau Lekoa	1.5	5.1	6.6	7.8
Moab Khotsong	9.4	10.9	2.2	19.3
TauTona	2.2	8.3	10.5	17.0
Savuka	0.4	4.8	5.2	5.4
Mponeng	0.7	7.0	7.8	15.8
Vaal River legacy project	7.6	7.9	15.6	6.3
West Wits legacy project	1.4	0.8	2.2	2.1
Ergo	23.9	0.1	24.1	32.0
Tanzania	23	24.4	47.5	56.8
Geita	23	24.4	47.5	56.8
USA	31.8	2.8	34.6	51.1
CC&V	31.8	2.8	34.6	51.1
Corporate	2.2	–	2.2	2.1
Total	243.2	202.6	445.8	482.4

* Discrepancies may be attributed to rounding

Long-term environmental closure obligations comprising decommissioning and restoration, are in compliance with the current environmental and regulatory requirements. The provision for decommissioning represents the cost that will arise from rectifying impacts caused before production commenced. The provision for restoration represents the cost of restoring the site after the commencement of production.

We continue to be involved in a project undertaken by the ICMM on an integrated approach to mine closure that considers the social, economic and environmental aspects in the closure process.

Cyanide

Cyanide remains a key component in the recovery of gold and underpins the viability of the global gold mining industry. While AngloGold Ashanti is aware of the potentially negative impacts associated with the use of cyanide, we believe that responsible use is achievable.

A key performance objective for 2007 was the implementation of the International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold (the Cyanide Code). The code is a voluntary industry initiative developed under the auspices of the United Nations Environment Programme (UNEP) to promote responsible management of cyanide used in gold mining, to enhance the protection of human health, and reduce the potential for environmental impacts.

AngloGold Ashanti was one of the first signatories to the code in November 2005 and, in line with this, committed to having all of its operations audited by an independent third party to demonstrate its compliance with the code. Sunrise Dam Gold Mine in Australia received conditional certification in line with the Code in March 2007 and full certification in January 2008. CC&V in the USA, and the four Vaal River (South Africa) gold plants were fully certified in September 2007. The Savuka and Mponeng gold plants (West Wits) were conditionally certified in September 2007. (For a complete list of certified operations see www.cyanidecode.org).

Different gold recovery processes and different ore types use varying concentrations of cyanide to maintain acceptable gold recovery efficiencies. Relative cyanide usage of the operations is therefore not necessarily a measure of performance. What is considered critical by the company is whether cyanide has been responsibly managed and whether there have been any environmental incidents during the year related to cyanide. Also of importance is whether we have been able to improve the efficiency of cyanide utilisation against set targets. In respect of the former, much attention is paid to preventing pollution by managing the concentration of residual cyanide in waste streams (see the list of significant incidents below). Compliance with the Cyanide Code provides assurance of good management and acceptable mitigation of risk.

Total cyanide usage by AngloGold Ashanti increased by 4% in 2007 to 30,431,259 kilograms. (2006: 29,230,044 kilograms). Efficiency decreased by 8% from 4.42 kilograms per ounce in 2006 to 4.80 kilograms per ounce in 2007.

Cyanide usage

Country	Operation	Usage (kg)		Efficiency (Cyanide usage per unit of production) kg/oz
		2007	2006	2007	2006
Argentina
	Cerro Vanguardia	548,000	533,333	2.29	2.48
Australia
	Sunrise Dam	1,559,159	1,720,074	3.70	2.60
Brazil
	Brasil Mineração	169,200¹	377,000	1.56	0.53
	Serra Grande	314,000	280,00	1.44	1.73
Ghana
	Obuasi	5,212,700	4,924,014	12.72	14.48
	Iduapriem	1,206,000	1,128,000	5.74	6.14
Guinea
	Siguiri	2,377,000²	1,461,000	4.85	7.22
Mali
	Morila	1,879,000	2,324,000	4.49	4.18
	Sadiola	4,282,200	3,627,0003	7.25	11.62
	Yatela	748,0004	964,00	2.73	2.49
Namibia
	Navachab	1,022,000	908,000	10.56	12.78
South Africa5
	West Wits	1,434,188	1,477,355	1.27	1.34
	Vaal River	3,917,812	3,845,447	2.76	3.11
Tanzania
	Geita	2,258,0007	3,098,0006	10.06	6.91
USA
	CC&V	3,504,0008	2,562,821	9.06	12.43
Total		30,431,259	29,230,044	4.42	4.80

Notes

1	Reduction is attributed to the roasting of all flotation concentrates ahead of cyanide, following the Cuiabá expansion.
2	Increase attributed to higher metallurgical throughput and ore composition requirements.
3	Correction to the value previously reported for 2006.
4	Decrease attributed to a lower metallurgical throughput than in 2006.
5	The 2007 cyanide consumption for West Wits and Vaal River has been estimated by splitting the total 2007 cyanide consumption in South Africa in the same proportions as 2006.
6	Correction to the value previously reported for 2006.
7	Decrease attributed to metallurgical reasons and lower tonnages treated.
8	Increases attributed to metallurgical and climatic factors.

Efficient use of resources

Gold as a product is inert and has almost no environmental impact. Most of the gold ever mined is currently held by banks, museums, individuals and around 15% is recycled every year. Rand Refineries, in which AngloGold Ashanti is a major shareholder, is a major recycler of gold in South Africa.

The efficient use of natural resources is a key and unarguable driver within the environmental discipline. As local circumstances, the nature of the orebody and mining methods differ from region to region and mine to mine, so do the specific environmental priorities. At a group level, we are committed to optimising resource usage and reducing waste but we recognise specific operational requirements and plans are best understood at site level. Thus, environmental targets are established by the individual mines to reflect the priorities and risks unique to each operating unit. Generally though, there are two major thrusts in terms of efficient resource usage that may be reported, namely, water and energy management. Further details on material usage (PDF - 575KB) may be found in this report.

Water

Water management is also driven by region-specific circumstances. Some operations are located in high rainfall areas whereas others are located in arid areas, some processes use more water than others and are more easily configured to minimal discharge than others; the topography of the region and composition of the ore are also important factors. Key here is not only the absolute water usage, but also how much and where it is withdrawn, the amount of recycling, and the prevention of pollution (both through planned and accidental discharge from water storage infrastructure, and through groundwater sources).

Good progress was made at Bokkamp Dam, an area of concern reported in 2006. (See case study: Progress at Bokkamp Dam to improve water management).

In addition to the significant incidents associated with water (reported above), the following is a summary of the major water-related issues and developments during the year:

The Margaret Water Company was formally registered in June 2007, bringing to conclusion extensive negotiations and debate regarding the potential flooding of current operations by deep groundwater inflow from the liquidated Stilfontein gold mine in the Klerksdrop, Orkney, Stilfontein and Hartebeesfontein (KOSH) region in South Africa. Pumping of around 40 million litres of fissure water is continuing under the management of the Margaret Water Company, which is jointly managed by AngloGold Ashanti, Harmony Gold and Simmer and Jack Mines. The novel solution has seen the creation of a self-sufficient and long-term operational water company, which mitigates both the risk of flooding of current and future operations, and the liability associated with deep groundwater in the future. (See case study: Progress in settlement of KOSH issue.)

The Wonderfontein Spruit, which flows from the north of AngloGold Ashanti's West Wits operations, towards Potchefstroom, remains the subject of much attention, both internally and externally. This water resource has been contaminated with sediment which has been deposited over an extended period of time by a number of mining companies, including abandoned and closed mines. These sediments are deposited from naturally-occurring rock in this region that contains uranium and other heavy metal elements. The catchment area also includes a number of operating mines, all with waste rock dumps, tailings dam and associated plant infrastructure.

AngloGold Ashanti has actively participated in a number of regulatory and public fora and has engaged extensively with interested parties, with the aim of understanding and scientifically assessing the problem and coming up with a workable solution. (See case study on Engagement on the Wonderfontein Spruit)

In 2007, total fresh water usage by AngloGold Ashanti decreased by 1% to 60,231,616m³ (2006: 60,977,843m³). From an efficiency point of view, consumption per ounce of production remained virtually unchanged.

Fresh water usage

Country	Operation	Usage (kg)		Efficiency (Water usage per ounce of production) m3/oz
		2007	20069	2007	2006
Argentina
	Cerro Vanguardia	1,036,741	939,647	4.04	4.70
Australia
	Sunrise Dam	1,742,33910	2,254,970	4.85	2.90
Brazil
	Brasil Mineração	4,163,38111	3,371,455	13.93	13.13
	Serra Grande	399,300	367,920	1.90	2.19
Ghana
	Obuasi	10,110,00012	14,070,000	36.36	28.08
	Iduapriem13	100,000	100,00	0.51	0.51
Guinea
	Siguiri	2,959,121	2,939,059	9.76	8.98
Mali
	Morila	4,945,95015	3,659,12814	7.07	10.99
	Sadiola	5,714,334	5,020,000	10.04	15.51
	Yatela	1,120,000	1,340,909	3.80	3.73
Namibia
	Navachab	1,116,821	938,000	10.91	13.96
South Africa
	West Wits	5,569,486	5,564,432	4.80	5.21
	Vaal River	17,217,443	16,147,482	11.58	13.69
Tanzania
	Geita	2,670,066	2,348,666	7.63	8.17
USA
	CC&V	1,366,63416	1,916,175	6.77	4.85
Total		60,231,616	60,977,843	9.21	9.50

Notes

9	Restatements of 2006 data have been made at some sites as a result of a refined definition for reporting fresh water use. These sites include Yatela, Sadiola, Obuasi, Serra Grande and CC&V.
10	Water efficiency has improved over 2006 owing to increased recovery from CTD trenches.
11	Increase attributed to commissioning of the Cuiabá gold plant.
12	Lower consumption of fresh water as a result of initiatives to maximise internal water recycling.
13	An estimate of annual groundwater abstraction, there is nil abstraction from other sources.
14	Correction to the value previously reported for 2006.
15	Consumption increase attributed to the raising of the raw water storage dam inventory level and to increased metallurgical demand.
16	Higher rainfall onto the heap leach pad than in 2006. This decreased the need for fresh water addition.

Energy

Our mining activities require significant amounts of energy, for transporting employees, equipment and rock, for ventilation and refrigeration in underground mines, for powering drilling and other equipment, to run gold plants and administration operations, and for accommodation facilities. Electricity is typically purchased from national grids or generated at remote locations using heavy fuel oil or diesel. In most countries, we are dependent on the electricity provider for the fuel mix used in the electricity grid. In South Africa, the largest regional electricity user in the group, energy is generated predominantly from coal. It is clearly in the company’s best interests to reduce energy usage, and to ensure the most efficient possible usage of the energy that is used. This is true not only from a cost point of view but also in the light of increasing scarcity of power in South Africa (which has resulted in nation-wide power outages in late 2007/early 2008) and Ghana (as poor rainfall had a negative impact on hydro-electric power generation). In South Africa, Eskom reports that the mining industry uses about 15% of the country’s supply. In addition, the role of energy generation in greenhouse gas emissions provides further impetus for reduction.

AngloGold Ashanti’s Australian operations’ investigation into renewable energy and specifically into Sunrise Dam’s wind electric power system to power borehole pumps saw the company being recognised by the Western Australian Department of Industry and Resources. (See case study: Sunrise Dam receives environmental recognition for wind power initiative), Other examples of the company’s initiatives in this regard may be found in case studies on Energy recovery at Mponeng and AngloGold Ashanti’s role in and contribution to the South African National Energy Efficiency Accord).

In 2007, AngloGold Ashanti’s total energy consumption from all sources was 31,155,104GJ, an increase from 2006 when it was 31,039,107GJ. In efficiency terms, energy usage was 4.69 giga joules per ounce in 2006 and 4.96 giga joules per ounce in 2007, reflecting a rise of 6%.

Energy usage

Country	Operation	Usage (GJ)		Efficiency (energy usage per ounce of production) GJ/oz
		2007	2006	2007	2006
Argentina
	Cerro Vanguardia	535,155	463,686	1.99	2.43
Australia
	Sunrise Dam	1,978,167	2,261,654	4.86	3.30
Brazil
	Brasil Mineração	781,31017	578,619	2.39	2.46
	Serra Grande	311,456	301,576	1.55	1.71
Ghana
	Obuasi	2,484,700	2,411,44018	6.23	6.90
	Iduapriem	944,479	936,67419	4.77	4.81
Guinea
	Siguiri	1,714,517	1,602,181	5.32	5.20
Mali
	Morila	1,864,859	1,915,33220	3.70	4.14
	Sadiola	1,664,342	1,538,19021	3.08	4.52
	Yatela	577,412	535,53322	1.52	1.92
Namibia
	Navachab	320,275	299,142	3.48	4.00
South Africa
	West Wits	5,789,711	6,194,535	5.34	5.42
	Vaal River	7,365,629	7,424,668	5.33	5.86
Tanzania
	Geita	3,351,884	3,276,803	10.64	10.25
USA
	CC&V	1,469,786	1,299,069	4.59	5.21
Total		31,155,104	31,039,107	4.69	4.91

A restatement of most 2006 data has been made as some sites excluded fleet fuel consumption.

Notes

17	Increased fuel usage due to higher tonnages mined at both surface and underground mines.
18	2006 surface diesel use inferred from 2007 data.
19	Fossil fuel use inferred from 2006 total tonnes mined.
20	Corrected owing to double accounting of electrical energy in 2006.
21	Restated owing to 2006 formula error.
22	Restated owing to 2006 formula error.

Greenhouse gas emissions

In addition to participating in the global debate on climate change and its potential impacts, AngloGold Ashanti has considered its position, evaluating both risks and opportunities in respect of climate change, and is embarking on a process of establishing its carbon footprint and greenhouse gas (GHG) emissions. In December 2007, at an internal workshop attended by environmental, engineering and public affairs personnel from operations around the world, CEO Mark Cutifani called for significant improvements in energy efficiencies and reduced greenhouse gas emissions. He asked participants to consider a medium-term target of a 15% decrease in energy usage and a longer-term target of a 30% reduction in GHG emissions. (See case study: AngloGold Ashanti and climate change). This follows the development of an internal position paper on climate change, including the opportunities and risks faced by the group. Operations have now been tasked with understanding their current GHG emissions and with developing action plans to effect significant reductions.

The South American operations (Cerro Vanguardia in Argentina and AngloGold Ashanti Brasil Mineração and Serra Grande in Brazil) commissioned a comprehensive baseline study of both direct and indirect GHG emissions for those operations. (See case study: Establishing AngloGold Ashanti’s carbon footprint in South America). Plans are being put in place to obtain similarly comprehensive data for our other operations and it is hoped that far more expansive reporting will be provided in the 2008 report.

In 2007, AngloGold Ashanti’s operations emitted 4,605,220 tonnes of CO₂e (direct and indirect emissions), similar to the estimated emissions of 4,748,529 tonnes of CO₂e in 2006.

In 2007 AngloGold Ashanti participated in the global Carbon Disclosure Project (CDP), through a survey of the top 40 companies listed on the JSE. CDP is a global institutional investor collaboration intent on understanding and quantifying climate change implications for business. AngloGold Ashanti’s response may be found on the Carbon Disclosure Project website.

The Australian government ratified the Kyoto Protocol in December 2007, committing Australia to limiting its GHG emissions to an 8% increase above 1990 levels over the period 2008 to 2012. This will have implications for our Australian operations. Sunrise Dam Gold Mine has registered with the Greenhouse Challenge Plus Commonwealth Energy Efficiency Opportunity programme. The programme encourages industry participants to identify practical and effective solutions for improving energy efficiency, reducing costs and improving the industry’s reputation. In line with this commitment, the operation will file an energy efficiency assessment plan with the Australian Department of Resources, Industry and Tourism every five years, and publish the outcomes of its improvement programme on an annual basis.

GHG emissions

Country	Operation	Usage (CO2e/oz)		Efficiency (CO2e)
		2007	200623	2007	2006
Argentina
	Cerro Vanguardia	38,559	33,218	0.14	0.17
Australia
	Sunrise Dam	146,254	167,215	0.36	.24
Brazil
	Brasil Mineração	10,06024	4,658	0.02	0.03
	Serra Grande	6,785	5,995	0.03	0.04
Ghana
	Obuasi	110,193	104,722	0.31	0.31
	Iduapriem	51,729	54,791	0.28	0.26
Guinea
	Siguiri	129,653	121,395	0.40	0.39
Mali
	Morila	138,018	141,754	0.27	0.31
	Sadiola	125,089	114,220	0.23	0.34
	Yatela	42,734	39,635	0.11	0.14
Namibia
	Navachab	13,267	12,244	0.14	0.17
South Africa
	West Wits	1,538,933	1,679,694	1.45	1.44
	Vaal River	1,848,984	1,874,521	1.34	1.47
Tanzania
	Geita	252,834	246,884	0.80	0.77
USA
	CC&V	152,140	138,648	0.49	0.54
Total		4,605,230	4,748,529	0.73	0.72

Calculated from direct and indirect fossil fuel usage plus emissions of ozone depleting substances and utilising WRI-WBCSD GHG Protocol Initiative default data, or where available, supplier emission factors.

Notes

23	The inclusion of more comprehensive fossil fuel data in the 2006 energy use statistics has resulted in restatements of 2006 GHG emissions at most operations.
24	An almost twofold increase in GHG emissions was the result of a rise in diesel use necessitated by the higher tonnages mined and a higher stripping ratio at Córrego do Sitio.

Biodiversity stewardship

The threat to biodiversity as a result of habitat destruction and other human-related causes has been a high-profile international environmental issue for several years. AngloGold Ashanti, as part of its commitment to environmental stewardship, considers the long-term sustainability of the land on which its operations are located to be an integral part of its responsibility.

Our operations in Brazil (AngloGold Ashanti Brasil Mineração and Serra Grande) are located in the ecologically sensitive and important Atlantic and Cerrado Forest ecosystems respectively. A great deal of work has been done over the past two years not only in protecting the areas in which the company operates, but also in understanding the biodiversity of the region and setting aside land for long-term conservation.

A three-year study on the biodiversity of the Samuel de Paula Natural Reserve was concluded in August 2007. Although the reserve itself contains only a small area of Atlantic Forest, it is home to several significant endangered species and is located within a densely populated metropolitan area. A similar study is being undertaken in the vicinity of the Cuiabá mine. In line with Brazilian legislation, expansions undertaken by the company – such as the construction of a new TSF at Cuiabá – may be offset through the creation of protected forest reserves. (See case study on: Mining operations serve to protect endangered species in Brazil).

Also during the year, Phase 2 of an extensive biodiversity assessment of both the West Wits and Vaal River operations was concluded. The assessment verified the data collated on the desktop study that was conducted in 2005 and has enabled researchers to map out areas of land in both of these regions into designated biodiversity management units. (See case study on Biodiversity assessment in SA completed).

The approach to rehabilitation and biodiversity management at Iduapriem in Ghana is also discussed in a case study on Iduapriem’s rehabilitation efforts. The Tarkwa Wassa West District in Ghana, in which Iduapriem is located, is host to about 40% of the country’s rain forest.

In Australia, environmental baseline surveys have been undertaken as part of the Tropicana project environmental impact assessment process. These surveys have contributed to the identification of previously unknown species, heritage site and increased the knowledge of the region’s biodiversity. Steps have been taken to manage any potential impacts of existing and proposed activities. (See case study Biodiversity and heritage protection at Tropicana).

Land management

(See case study on Closure and rehabiitation of tailings storage facility at Navachab).

Transport

Only a fraction of the amount of rock moved is gold and is thus transported to its final destination. Key aspects of transport related to gold are:

• Gold mining operations are frequently located in remote locations, necessitating the transport of employees to and from work by road (such as at Cerro Vanguardia) and by air (at Sunrise Dam);
• The final markets for gold are in the primary first world cities of the world, necessitating transport, by air, of the bullion; and
• Plant and equipment must often be transported great distances, by air, sea and land.

The environmental impact of the above has not been quantified although it will be considered as part of the company’s baseline assessments of its GHG emissions. The greatest potential for negative environmental impacts relates to the transport of cyanide to remote sites to treat the gold-bearing ore. As a signatory to the Cyanide Code, great care is taken as part of this process. One incident was recorded in relation to the transport of cyanide during the year.