Community

Management systems and accountability

Community-related matters are addressed at Board level by the Safety, Health and Sustainable Development Committee. See the Ethics and Governance section of this report and the Governance section of the Annual Financial Statements for further information on the functioning of this committee.

During 2008, the community affairs and environmental teams were integrated, reflecting the interdependence of these issues from both a strategic and operational perspective. This team is responsible for developing company policy in respect of community-related issues, and providing guidance and developing processes to assist operations in acting in accordance with the group’s business principles. A corporate level Community and Environment Vice President has been appointed to head up the discipline.

Further refinement of the Community Affairs Management Framework continued during the year. An additional module on human rights and security is being refined, in support of the new security discipline and in compliance with the Voluntary Principles on Security and Human Rights. In view of the integration of the community and environmental aspects of the business from a management perspective, a decision was taken late in 2008 to include community aspects into the existing ISO14001 management systems in place at all operations. It is envisaged that this process will take two to three years.

The existing community management system, incorporating the Stakeholder Engagement Action Plans (SEAPs) and Integrated Development Action Plans (IDAPs) and the accompanying toolkits are being drafted into management standards on stakeholder engagement, social investment, cultural heritage and sacred sites, indigenous peoples, grievances and complaints and ASM. An AngloGold Ashanti land use management and land acquisition standards are being finalised and a specialist resettlement company has been appointed to provide greater support to operations in developing and implementing robust land management and resettlement practices.

Also at a corporate level, AngloGold Ashanti engaged with international advocacy and voluntary bodies to develop standards, norms and best practice, such as the International Council for Mining and Metals (ICMM) and the International Organisation for Standardisation (ISO). AngloGold Ashanti is supportive of, and has participated in, discussions and programmes initiated by the Responsible Jewellery Council (RJC), the World Gold Council (WGC), and the Initiative for Responsible Mining Assurance (IRMA). For further details on the group’s participation in these bodies see the Ethics and governance section.

In a number of countries, legislation and regulation is in place to guide companies in respect of local community imperatives. In South Africa, the Mineral and Petroleum Resources Development Act (MPRDA) requires that all mining operations submit and adhere to a Social and Labour Plan (SLP) as a prerequisite for the granting of new order mining rights and report their compliance with the MPRDA in accordance with the Mining Charter. In addition to specific human resources-related issues, the Charter requires that mining companies engage with communities in which the company’s operations are located and from which it draws its workforce. AngloGold Ashanti was granted its licence conversions in respect of all of its operations in August 2005 and has reported on progress made against its SLP targets and commitments in the Social and Labour Plan Reports for the West Wits (PDF - 357KB) and Vaal River (PDF - 470KB) regions.

AngloGold Ashanti is also committed to engaging with non-governmental organisations (NGOs), community-based organisations (CBOs) and other stakeholders on issues of mutual concern. Underpinning its strategy is the group’s view that it is desirable that the various parties engage directly in relationships based on a mutual recognition of each other’s legitimate right to operate. Specific structures are being put in place to deal with grievances and legacy issues.

The group has continued during the year with its strategy of building relationships with key stakeholders and, interest groups, monitoring emerging trends, being proactive where possible, and responsive where issues arise unexpectedly. Relative to prior years, fewer NGO reports and campaigns on the company’s activities have been witnessed over the past year. One of the reports has been a catalyst for media and other stakeholder interest including, on occasion, investors, was the publication by Norwatch, a Norwegian news service, of published allegations of heavy metal pollution at Nyakabale village near Geita in Tanzania. See case study, Allegations of environmental damage at Geita.

AngloGold Ashanti has responded to issues as they have emerged. The group’s strategy is to continue to actively develop relationships with key interest groups and also to monitor emerging trends. Specific engagements during the year have included:

• Food First Information and Action Network (FIAN), in relation to security issues at Obuasi. See box below on dealing with illegal mining activities at Obuasi in Ghana;
• a first meeting with Tundu Lissu of the Lawyers’ Environmental Action Team in Tanzania; and
• IKV Pax Christi, an international NGO which has interacted with AngloGold Ashanti Exploration in Colombia in respect of security and human rights.

Engaging with communities

A wide range of formal and informal structures are in place to engage with stakeholders across all operations. An extensive list of stakeholders is available.

The communities in which the company operates (either through mining projects or exploration activities) are addressed through site-specific SEAPs and IDAPs. Community consultation forums vary from operation to operation. See box on community structures at Sadiola and Yatela (below) as an example of this.

Mechanisms for community members to lodge grievances are in place at most operations. Major issues raised during 2008 are summarised below.

• A total of 56 calls were received during the year at Brasil Mineração, 38% relating to caretaking of the company’s properties.
• In the DRC, community complaints were received regarding the increased project-related road traffic and, in particular, that company vehicles were being driven at high speed.
• A number of complaints lodged by community members at Iduapriem during the year concerned resettlement and compensation, environmental pollution and the lack of water supply to Teberebie. Other complaints related to the lack of new jobs created, and the management of the Hand-in-Hand Alternative Livelihoods Initiative.
• Grievances raised by community members around Siguiri in Guinea related to damage to crops caused by mining activities and the diversion of a national road.
• Complaints were received from community members at Sadiola and Yatela, relating to the contamination of grazing land by mud, death of cattle, and water shortages in Sadiola and Farabakouta villages.
• At Geita, grievances lodged by community members largely concerned land and property acquisition by the company, and environmental issues.
• At CC&V in the United States, community complaints were about dust, noise, vibrations from mining activities and the impact of the proposed extension to the mine.

A number of positive initiatives were undertaken during the year in establishing new relationships and in maintaining existing ones. An example is the significant milestone achieved in the DRC when the project hosted a libation ceremony (seeking blessing of the ancestors for exploration activities) with a number of local communities in an area where exploration was about to begin.

Human rights and security

As AngloGold Ashanti’s global footprint extends into countries and regions in which it has not previously operated and where the risk profiles are different, so its exposure to different operating environments and security contexts has increased. Given the company’s position on human rights and its status as a signatory to various initiatives, such as the Universal Declaration of Human Rights, the Global Compact and the Voluntary Principles on Security and Human Rights, it is clear that security is not simply a matter of asset protection, but one that, increasingly, has a social dimension. For this reason, the company undertook a global security review and is developing a group approach to security across its operations.

AngloGold Ashanti operates in a number of countries where security considerations make it necessary for operations to rely on special support, on a fee-for-services basis, from the police and/or the military. This is the case in Ghana, Guinea, the DRC and Colombia. It is a complex issue that raises moral and social concerns and requires ongoing management, monitoring and attention. (See discussion above on illegal mining in Ghana) See case study: Improving security in line with Voluntary Principles as well as, the Human Rights section of this report.

Significant community incidents

A number of incidents relating to the community issues and human rights were recorded during the year. A list of environmental incidents (PDF - 73KB) is also available. Areas of greatest concern to the company are the continued clashes with artisanal miners, illegal miners and trespassers at Obuasi in Ghana and Siguiri in Guinea. Significant incidents during the year are reported below, under the headings of:

• incidents involving community members on the mine property and who are engaged in illegal activities;
• incidents where there have been clashes between the mine and contractor security personnel and community members; and
• protest action against the company.

Incident			Security interventions				Protest Action
	Individuals involved in illegal activity		Community members		Company security personnel
Operation	Deaths**	Injury**	Deaths	Injuries	Deaths	Injuries
Colombia*				1 (altercation)
Siguiri, Guinea*	22***			–		7	1
Obuasi, Ghana*	5***	1***		2 (shooting)		3	1
Induapriem,							1
Ghana
Geita, Tanzania	1****	-		1 (shooting)	0	2
Sadiola, Mali							2
Total	28	1	0	4	0	12	5

^*AngloGold Ashanti security acts in concert with state security forces at these operations on an active and ongoing basis.

^** On company property, but unrelated to company interventions

^*** Fall of ground incidents

^**** Accident involving a haul truck

The vast majority of these incidents (outside of protest action) stem from individuals involved in illegal activities. A distinction is made between the death and injury of individuals involved in illegal activities without active security intervention (that is, 27 deaths and one injury due to falls of ground while practicing artisanal, and in most cases, illegal mining, and the death of one individual suspected of attempting to steal fuel from a haul truck), and those incidents where security interventions have led to the death (0) or injury of community members (4). AngloGold Ashanti security personnel (12) sustained injuries, some serious, while carrying out their duties. There were five incidents of significant protest action during the year.

Several notable incidents occurred in 2008, where force was used by AngloGold Ashanti security staff, or by contracted public/ private security providing services to AngloGold Ashanti. Minimum force is advocated at all times, in line with the company’s commitment to the Voluntary Principles. These are detailed below:

Date	Location	Units involved	Details
Shooting incidents
May 2008	Obuasi, Ghana	Local police on mine site	A group of illegal miners, armed with machetes, was sighted on AngloGold Ashanti’s property. Police stated that the trespassers acted in a threatening manner, and decided to fire warning shots. Warning shots struck one illegal miner, wounding him in the leg. The individual is currently out on bail and recuperating from the wound, after receiving treatment at AngloGold Ashanti’s mine hospital. After a full investigation, local police determined that the policemen acted with justifiable force and within his rights. The miner was subsequently charged for being involved in illegal mining activities. From a corporate and management perspective, AngloGold Ashanti has flagged some concerns with the use of force in this situation.
December 2008	Obuasi, Ghana	Local police on mine site	A policeman fired a warning shot whilst trying to arrest an illegal miner. A struggle ensued, during which the illegal miner was shot in the foot, resulting in a fracture of the foot. After a full investigation, it was found that the policeman acted with justifiable force and was within his rights, and the individual was charged for being involved in illegal mining activities. The illegal miner is currently out on bail and recuperating from his wound, after receiving treatment at AngloGold Ashanti’s mine hospital
November 2008	Geita, Tanzania	Sub-contracted security guards	A group of approximately 20 intruders tried to access AngloGold Ashanti’s mine workings, allegedly to try to steal diesel (which is a common problem at Geita). When confronted by an AngloGold Ashanti security guard armed with a shotgun, one of the intruders - armed with a machete - approached the guard in a threatening manner, which prompted the guard to fire a shot in the intruder’s direction. The individual sustained minor birdshot wounds to his body and was treated at the mine’s local clinic.
			After a full investigation, it was found that the guard acted with justifiable force and was within his rights. The intruder was arrested for attempted robbery and trespassing and detained by the police. Guards at Geita have been threatened by suspected criminals several times during 2008, and several warning shots have been fired throughout the year to ward off groups of people attempting to commit theft on AngloGold Ashanti property.
Incidents involving death or injuries to the public
Several dates during 2008	Ghana	Illegal miners	In three separate incidents in Obuasi’s underground operations, five people lost their lives and one person sustained serious injuries due to falling rocks. This occurred as illegal miners were operating in Obuasi’s underground shafts. In all the incidents, the mine initiated rescue operations. One person was rescued alive during these rescue attempts. He was treated at the Obuasi mine hospital and referred to the state hospital in the nearby Kumasi. The bodies of the deceased were identified and subsequently transferred to the families for burial.
February, 2008 Colombia	Providencia Antioquia, Colombia	Millitary platoon under formal agreement with AngloGold Ashanti	The commander of a platoon, detailed to support our joint venture partner at Providencia Antioquia, responded to a request for help by a local bartender. Local underage youths were drinking at his establishment. Military personnel confirmed the youths were underage and drunk, and escorted them off the property. However, they then marched two of the youths to their encampment, and administered corporal punishment forcing them to dig holes to bury garbage. The youths were returned six hours later to their families. Upon hearing about the incident, AngloGold Ashanti's Colombian security department determined the military may have violated the civil rights (human rights) of the youths. AngloGold Ashanti security composed a letter to the army brigade commander to inform him of the potential Voluntary Principles violation, and to request that a proper investigation be conducted. The army sergeant and the participating soldiers were immediately relieved from their duties the following day, and transferred to another army facility. In December 2008, AngloGold Ashanti received a formal response from the army indicating that after an internal investigation the soldiers involved had been dismissed from the army.
Several dates during 2008	Guinea	Illegal miners	During 2008, a total of 22 people lost their lives in eight separate incidents involving artisanal miners at Siguiri mine in Guinea. Holes dug by the artisanal miners at AngloGold Ashanti’s open-pit mining operations collapsed on them. In one incident alone, a total of 13 people died. Although all possible measures from a security point of view are being taken to prevent the persons from entering our workings, they still manage to enter and put their lives at risk. Every effort is being made to find a workable solution with the communities, to prevent these unfortunate incidents.
September, 2008	Geita, Tanzania	Operations	A suspected diesel thief, who was trespassing at one of the waste dump areas at Geita mine in Tanzania, was fatally injured when struck by a rock being dumped by a truck in the area
Labour and community unrest incidents
June, 2008	Obuasi, Ghana	Sub-contracted security guards	The local Diawuoso community took two Obuasi staff members and a mine vehicle hostage for several hours in the village, demanding to see the Managing Director of the mine. The community’s concern stemmed from the unresolved matter of the building of a bridge (by the mine) to cross a river which floods during the rainy season. The flooding has been made more severe by the release of water into the river by the mine. Security intervention was required. The issue was resolved without injury.
November, 2008	Siguiri, Guinea	Sub-contracted security guards, police and local army	Local communities staged protests outside the mine. The community’s anger arose from expectations relating to the electrification of Siguiri town and the surrounding communities by the mine. The unrest and protests lasted for six days, and required a significant security presence in and around Siguiri mine. Police and the local army were present, without incident. The issue was resolved at national level, and protestors dispersed peacefully. A short, medium and long-term plan is being put in place by the mine, with other stakeholders, to resolve the underlying issues.
January and February 2008	Sadiola, Mali	Sub-contracted security guards,	Two separate protests took place at Sadiola regarding the water supply, and possible shortages, in the surrounding communities. Security intervention was needed and the protests were dispersed without incident.
Several dates during 2008	South African security staff	AngloGold Ashanti occuring.	Nine incidents of (legal) industrial action were monitored at the South African operations, with no serious incidents.

Artisanal and small-scale miners

The continued presence of artisanal and small-scale mining (ASM) at the company’s operations and exploration sites in Africa (Ghana, Guinea, Tanzania, the DRC), present a significant challenge to the company, resulting in various degrees of social, environmental and safety incidents as listed above.

ASM activity has resulted in third-party fatalities on the company’s lease areas. ASM communities seldom share information on safety incidents given that these activities are often illegal.

AngloGold Ashanti’s position on ASM is that the group will, first and foremost, act in accordance with local regulations and legislation. However, the company recognises the historical and current roles and rights of artisanal and small scale-miners, and that engagement is a critical factor in dealing with the issue. AngloGold Ashanti believes that co-existence with artisanal and small-scale miners is not only possible, but also desirable. The group is in favour of promoting the development of orderly, viable ASM sectors in collaboration with host communities and governments in exchange for respect for the security of the group’s operations. However, in most cases, these aspirations have not yet been achieved.

There is inherent potential for conflict between large-scale operators, working within a formal, regulated land tenure framework, and small-scale miners on the other, often outside of any regulations. AngloGold Ashanti believes that government needs to take a leading role in addressing ASM. It is also conscious that ASM is largely a social issue that can only be addressed through the upliftment of communities – an area where the company has an important role to play.

While ASM plays an important role in subsistence activity in communities, there is a concern by the company that activities that are attributed to ASM infringe the rights of the company and safety of its assets and people. There have been several incidents of illegal pit invasions at Siguiri in Guinea by artisanal and small-scale miners, and shaft invasions by illegal miners at Obuasi.

• At Siguiri, these large-scale (upwards of 700 people) mining invasions have taken place in the mining pits, along haul roads and close to waste rock dumps. The mine has experienced damage to property, theft, sabotage and the physical assault of its security personnel during the year and mine has engaged external consultants to develop a comprehensive community engagement plan, including a management programme.
• At Obuasi, these invasions have been particularly confrontational resulting in serious injuries to mine security personnel. In response, Obuasi has implemented a multi-pronged programme to address both the issue of ASM and illegal mining activity. (See box on Dealing with illegal mining activities at Obuasi in Ghana.) The intervention includes a military deployment on site, ongoing engagement with artisanal and small-scale miners, other community groups and local and national government.
• There have been a number of instances of conflict between the company and artisanal and small-scale miners around Geita in Tanzania. It is estimated that between 400 and 500 miners are typically engaged in activities on and around the lease area. The company continues to work with the authorities and through the Small Miners' Association to establish dialogue, provide education and training (especially in respect of safety, health and environmental issues) and to minimise conflict.
• ASM is a significant and potentially high-risk issue in the DRC, where it is estimated that there are around 100,000 miners on and around the lease area. A plan to address this is issue is being implemented. A key component of the programme is the provision of an alternative gold recovery process that does not use mercury (which is highly hazardous to human health). The project forms part of a greater endeavour to build capacity within the community surrounding the company’s licence area, in partnership with the NGO, Pact Congo. Included in this programme are: conflict mitigation, savings funds, literacy training, small business and entrepreneurship development, among others. An environmental and social impact assessment has been completed by SRK Consulting and the concentrator has been procured and will be commissioned in 2009.

Planning throughout the life cycle

As exploration and mining activities frequently occur in areas that are remote or in regions where there is very little other economic activity, their relative impact is often heightened. Therefore, the impact of potential and existing mining activities needs to be considered at all stages of an operation’s life cycle, from exploration, through the operating life, to eventual closure.

A range of potential impacts and mitigating measures are identified during the Environmental and Social Impact Assessment, and mitigating measures are then incorporated into the Environmental Management Plans (EMPs) over an operation’s life of mine. See the Environment section of this report.

Similarly, planning for closure takes into account both the environmental and social impacts that will be the mine’s legacy to the community. Planning begins well in advance of closure and closure is a matter for discussion at most community engagement forums. This is the case at Sadiola and Yatela in Mali, for example (see box above), where closure has long been a standing agenda item of the annual IDAP workshop. At Morila, also in Mali, where ore extraction is expected to cease in 2009 and processing in 2013, planning for closure has involved a comprehensive range of stakeholders.

AngloGold Ashanti recognises that the plans that are developed for community engagement need to be dynamic and revised to take account of differing circumstances. In 2008, for example, a review was undertaken of the community development programme and the alternative livelihoods initiative for Iduapriem.

An area of concern that is being addressed at a group level and will influence future feasibility studies and the life cycle analysis is that of climate change. Climate change is having, and will continue to have, the greatest impact on impoverished communities in developing countries. The group-wide climate change study focuses on the impact of climate change on communities around AngloGold Ashanti’s operations. The study aims to identify community-related climate change risks faced by the company and identifies options for adaptation programmes. See also the discussion on climate change in the Environment section of the report and the case study: Developing a business case for climate change projects.

The impact of the company’s activities, programmes and practices on communities (including community health and safety, land management, livelihood restoration, local culture, indigenous peoples and cultural heritage) is not formally assessed. However, through the formal and informal engagement practices (including stakeholder engagement forums, SEAPs and IDAPs) informal and ongoing feedback is received from communities and others, and taken into account in planning for ongoing future activities. It is the company’s intention to embark on a more formal approach to the assessment of the impact on communities in the coming year.

Local economic development

AngloGold Ashanti is of the view that its operations and activities can and should contribute to the long-term sustainable development of host communities. Specifically through the support of local economic development, operations can ensure that they play a positive role in sustainable economic development of the local communities. The fact that mining operations may be short-lived or that exploration projects will not necessarily become mines, presents a challenge as there is only a limited period in which to make an impact. See case study: New road paves the way for economic development in the DRC.

Many of the group’s operations are located in areas of great need, where development has been minimal, resources are scarce and high levels of poverty exist. The need to invest appropriately and in a manner that is sustainable is frequently countered by the pressure from communities and indeed governments to receive tangible and immediate benefits. Where this makes sense, particularly in economically underdeveloped regions, operations are encouraged to develop partnerships with parties such as other mining companies and companies in other industries, contractors, NGOs and government to ensure more effective delivery.

Local economic development of mine-based communities and labour-sending areas is specifically mandated by the MPRDA and the Mining Charter. In South Africa, the Small and Medium Enterprise Development Initiative (SMEDI) continues to identify people with ability and potential, and enters into a partnership with them to provide education, training and funding with the long–term aim of creating sustainable business. The raising of venture capital is managed through Masakhisane Investments Limited, which was established in 1999, with an initial capital investment of R10 million. See the case study: The challenges of local economic development: The Masakhisane Fund.

In Brazil, both Serra Grande mine and Brasil Minerãçao have local economic development programmes in place to stimulate the local economy, to develop skills and to develop alternative employment options now and in the future. This work is done in conjunction with local communities, municipalities and elected leaders, and in close collaboration with NGOs that provide support to micro and small enterprises in Brazil.

The Cerro Vanguardia mine in Argentina is the primary employer of people in Puerto San Julián, a very small (12,000 people) and remote community. For some years, the company has been actively engaged with community leaders and the local authorities supporting the work of the Development Agency. A development plan for Puerto San Julián (from 2007 to 2020) has been developed and is being refined. Progress on this plan is reported in the case study: Community engagement in Argentina.

The newly developed social investment management standard will specifically address local economic development and this area of work (particularly the development of alternative livelihoods) will continue to be a focus in 2009.

Corporate social investment

In 2008, AngloGold Ashanti spent $8.89 million on corporate social investment (2007:$8.05 million). For accounting purposes, corporate social investment expenditure is defined as the voluntary investment of funds in the broader community through programmes spanning a range of development and maintenance activities that seek to complement the work of government, NGOs and community-based organisations (CBOs), where the target beneficiaries are external to the company. Corporate social investment specifically excludes those activities where the purpose is primarily commercial, for example, marketing, employee benefits or public relations activities.

The vehicles for corporate social investment differ from region to region, and operation to operation, and are in line with the specific needs indicated by communities.

The South African corporate social investment initiative is directed by the AngloGold Ashanti CSI Committee, the members of which are drawn from the ranks of senior managers in different fields. In line with the Mining Charter, the focus is intentionally on regions in which AngloGold Ashanti has operations and the areas from which the company draws large numbers of employees, with 90% of the projects supported being situated in these areas. North West Province, where the West Wits and Vaal River operations are located, benefited from 50% of the available funding, followed by the south-eastern part of the Eastern Cape 15% where the families of the majority of employees from this province reside.

Two initiatives undertaken in Southern Africa in 2008 are featured in case studies: Rolling out computers in rural schools and, Supporting the Potchefstroom Hospice.

The primary area of funding in South Africa is on education (42%), with the two major the development of infrastructure and capacity-building among educators.

Social Corporate investment ($000)

Mine	2008	2007	Reason for variance
Argentina	590	371
Cerro Vanguardia1 (92.5%)	590	371	Increased expenditure to start up a young entrepreneurs foundation and a teachers college.
Australia	117	77
Sunrise Dam	117	77
Brazil	923	612
Brasil Mineração	839	481	Increased expenditure related to support for renovating a town square to support and promote tourism.
Serra Grande (50%)1	84	653
Colombia	99	0	Expenditure brought in to reporting slope in 2008.
Exploration	99	-
DRC	119	71
Exploration	119	71	More focused approach towards CSI adopted in 2008 with an implementing partner.
Ghana	2,287	2,304
Iduapriem (85% until September 20071)	332	319
Obuasi	1,955	1,985
Guinea	242	395	Re-evaluation of projects being supported underway.
Siguiri (85%)2	242	395
Mali	620	102
Morila (40%)1	60	55
Sadiola (38%)1
and Yatela (40%)1	560	47	Expansion of activities related to IDAP.
Namibia	86	360
Navachab	86	360	Reduced expenditure due to completion of once off infrastructural projects and assistance to communities to reduce the effects of drought.
South Africa	3,177	3,180
Fund and other corportate donations	2,993	3,001
South African operations	184	179
Tanzania	373	265
Geita	373	265
USA	253	311
CC&V	253	311
Total	8,885	8,048

¹ Attributable.

² The figure for Siguiri includes the amount paid to the Prefectural Council for the development of Siguiri as part of a legally binding 0.4% revenue agreement.

³ Restated: 2007 figure was for 100% of expenditure.

Indigenous people's issues

AngloGold Ashanti is mindful that there are specific considerations that need to be taken into account regarding indigenous people. The company has participated in the development of a position statement on indigenous peoples developed under the auspices of the International Council on Mining Metals (ICMM) and supports the council’s position statement on indigenous peoples, which was approved during 2008. A draft standard in line with their position statement was developed during the year. No specific incidents or complaints in respect of indigenous peoples were recorded during the year.

In Australia, formal induction programmes have been developed to educate employees and contractors about the communities in which the company operates and these deal with local values, traditions, culture and preservation of the local environment.

Cross-cultural training is undertaken for all new employees and contractors at Sunrise Dam mine in Australia as an integral part of the induction process. The course aims to demonstrate the links between Aboriginal culture and the local environment, and to demystify the difference between Aboriginal and Western cultures.

Historical and cultural information presented highlights the many complexities encountered by Australia’s indigenous communities and the corresponding challenges for non-indigenous people. A deeper appreciation of the Aboriginal culture is critical to any effort to improve the status of the Aboriginal people and to narrow the gap that exists in local society.

Land management

Securing land to explore and conduct new mining activities and extend existing ones underpins the viability of the company. Particularly in respect of opencast mining, but also in underground mining and for metallurgical processing, surface land area may be required to conduct mining operations, with a permanent loss of the surface features and structures. Land is a particularly sensitive and emotive issue, and resettlement and compensation continues to be a major consideration in the planning of mining activities.

Many communities have long-standing cultural and economic associations with the land on which they reside. It is therefore necessary for the company to engage with communities in respect of resettlement, and to compensate them fairly and appropriately as part of a rigorous and recognised resettlement process. The group also needs to ensure that mechanisms are in place to address grievances or legacy issues that have arisen in respect of past access to land.

Following a detailed review of the company’s resettlement and compensation practices in 2007, AngloGold Ashanti’s has developed a new approach to land management. This draft standard draws on the International Finance Corporation’s (IFC) policies on Involuntary Resettlement for AngloGold Ashanti’s policy on resettlement, and associated land management practices. Provision is made for grievance mechanisms in the standard. See case study: Implementing a land management policy for AngloGold Ashanti.

Specific resettlement and compensation issues dealt with during the year are set out below

DRC

• Compensation has been paid for crop areas disturbed by exploration activities. A review of land management practices and processes was undertaken during the year.

Tanzania

• The Katoma compensation exercise for 553 property owners at Geita mine in Tanzania. Negotiations on this resettlement were initiated in 2004, property valuations were conducted in 2006, and resettlement of all but 16 households has been concluded. A group of 16 property owners who declined compensation and filed a case in court against the company will not be displaced until the court hearing has been concluded. Negotiations with this group, through the District Commissioner’s Office, has continued.

Guinea

• comprehensive review of land management has been undertaken in Guinea. Currently, resettlement of around 70 households in the Kintinian area is being considered.

Ghana

• Plans are advanced to resettle the Dokyiwa village community to pave the way for the extension of the Sanso TSF at Obuasi in Ghana. Consultants were engaged to carry out the Resettlement Acton Plan (RAP), socioeconomic baseline studies and technical investigations of the proposed site. Although the construction of the facility has been delayed, crop compensation began in January 2009 and resettlement is planned for early 2010.
• Compensation for land along the Ge Kilomebre haul road for the Ajopa project was started at Iduapriem during the year. This covers a total farming area of 156 hectares. Some $420,000 has been paid to the affected farmers to date.
• Plans are progressing for the resettlement of the Tokunso community for the Ajopa project. The community comprises 376 households (about 1,970 people). Negotiations on this resettlement began in May 2007. An agreed RAP has been developed and the actual resettlement will take place in June 2009.
• Issues relating to the previous settlement of the people of Teberebie persist and extensive engagement continues to resolve these issues.