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Our Difference

“I am heartened by the recognition across the organisation that delivering on our transformation agenda, within the organisation, our neighbouring communities and the country more broadly, is non-negotiable” - Andile Sangqu, Executive Head of Anglo American South Africa

Transformation

Partnership And Engagement key to bridging the gap of Transformation

In spite of tough operational and contextual challenges, with increased stakeholder expectations across a range of fronts, we have not compromised on meeting our transformation commitments for 2015, as you can find out in our latest Transformation Report.

To move forward in our commitment to transformation, we know what we have achieved, what remains to be done and what we need to do to sustain this commitment. Although the challenges are complex, we have the strong leadership and right people to maintain our strategic intent and place our business at the forefront of sustainable initiatives. Through engagement and partnership, and collective responsibility, we will bridge the gap between where we are and where we desire to be.

The Current Economic Environment

Mining has historically been the backbone of South Africa’s economy, and is also pivotal to the task of redressing historical and social inequalities. The sector continues to be under tremendous pressure, with exceptional economic challenges, including a sluggish domestic economy significantly affecting the industry’s ability to contribute towards creating a more prosperous and fairer society.

Against this backdrop, it is inevitable that mining companies face heightened expectations – notably, for jobs and the provision of services – from communities close to their operations. The complex economic and social landscape has highlighted both the importance of driving our transformation agenda, as well as some of the profound challenges in doing so.

Transformation as A Business Imperative

In spite of tough operational and contextual challenges, with increased stakeholder expectations across a range of fronts, we have not compromised on meeting our transformation commitments. There is a recognition across the organisation, that delivering on our transformation agenda – within the organisation, our neighbouring communities and the country more broadly – is non-negotiable.

There is an understanding that transformation is much more than simply a compliance requirement. It is not a ‘soft issue’ that we should relegate to secondary status. It is a business imperative. Demonstrating a genuine commitment and ability to deliver on our transformation objectives is an important basis for fostering trust with our stakeholders. We believe that the performance review in this report provides a very good indication of our commitment in this area.

We have gone through, and continue to go through, considerable change at Anglo American, which can be challenging and disruptive. The new operating model aims to empower us to realise our full potential and that of our diverse assets, and we have rebuilt our operational and technical capability to drive improved performance in the repositioned portfolio.

Discover our commitment to transforming not only the mining industry, but South Africa as well, by reading our latest Transformation Report.

Key Facts from the 2015 Report

Safety: It is with deep regret and sadness that we report that three of our employees lost their lives in work-related incidents at our operations during 2015. However, striving for zero harm remains our top priority and we will maintain our relentless focus on ensuring a safe workplace for all.

Social investment: Our investments in housing are supported by our expenditure on community development projects, which focus primarily on supporting education, infrastructure, and community health and welfare. During 2015, our businesses expended R891 million across these sectors (R958 million including contributions to the Chairman’s Fund), of which R520 million was spent on Social and Labour Plan commitments.

Local and preferential procurement: In 2015 our business units spent R36.7 billion, nearly 80% of total expenditure in South Africa, with BEE-compliant businesses. We continue to make good progress in assisting suppliers at all levels to overcome barriers to becoming BEE-compliant. We endeavour to build an inclusive supply base, using procurement opportunities created by our mining operations as a catalyst for local economic growth.

Enterprise development: In 2015 our longstanding Zimele enterprise development initiative provided R308 million in funding for 321 businesses that collectively employed more than 8,600 people and generated turnover of R2.5 billion. Successful SMEs have a positive multiplier effect in the surrounding communities, creating employment opportunities and promoting socio-economic development.

Housing and living conditions: A cornerstone of our contribution to community development is our investment in providing quality housing and improved living conditions for employees and their families. In 2015, Anglo American spent more than R1.9 billion on housing initiatives, including expenditure on bulk services, land purchases and housing allowances. More than 10,000 employees remain in company housing, although this number is steadily declining as more houses become available. Since 2010, we have built more than 4,400 houses.

Employment equity: In spite of challenges, we have generally maintained, and in some areas improved, our levels of historically disadvantaged South African (HDSA) representation at management levels, with the overall aggregate improving from 62% last year to 63%.

Skills development: We have developed a strong pipeline of skills, particularly at entry level, as a result of our graduate and fast-tracking programmes, and we focus on ensuring that those skills developed are being used optimally within our business. In 2015, our businesses spent R936 million on HDSA training and development, representing 4.8% of payroll.

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Real Mining. Real People. Real Difference.