Miners at New Vaal colliery
As the largest mining company in South Africa, we have been at the forefront of creating sustainable black economic empowerment (BEE). We have a number of initiatives to drive change and our achievements in this area have set the benchmark for others to follow.
Our progress in fulfilling the requirements of the Mining Charter and our commitment to BEE was rewarded when the Department of Mineral Resources granted us new order mining rights for all our operations in early 2008.
Group BEE spend grew from R1.1bn in 2000 to R12.1bn from core operations alone in 2010. BEE spend on capital goods already ahead of the 40% 2014 BEE procurement target.
Broad-based black economic empowerment
We have embraced the spirit of transformation by creating mining companies that are managed by historically disadvantaged South Africans (HDSA).
Several noteworthy BEE transactions are in place across our operations:
- Anglo Platinum, Anooraq Resources and Mvela Resources reached an agreement on transactions that resulted in the creation of two major HDSA-managed and -controlled South African platinum group metal producers with critical mass and significant growth potential.
- Anglo Inyosi Coal is a R7 billion black-empowered coal mining company. Through this deal, Inyosi, a broad-based BEE company, purchased a 27% stake in AIC which houses key future domestic and export-focused coal operations. These include the Kriel and Zibulo mines as well as three greenfield projects. The company has a beneficiary base of more than 27,000 people, most of whom are historically disadvantaged women.
- Samancor Manganese, in which Anglo American has a 40% shareholding, entered into an empowerment deal with Ntsimbintle Mining to create Hotazel Manganese Mines. Eventually, 26% of Hotazel Mines will be transferred to BEE partners.
- A Scaw Metals empowerment transaction with BEE partners Izingwe Holdings, Southern Palace Holdings and Shanduka Resources for its South African assets, resulted in the formation of a new empowered company, Scaw South Africa.
- Following the unbundling of the Tongaat-Hulett Group into two separately listed companies in 2007, Ayuvuna Women’s Investments and Sangema Investments became anchor BEE partners by acquiring a 25% stake in Tongaat-Hulett valued at R2.1 billion. Imbewu Consortium and Makana Investment Consortium acquired a 15% stake in Hulamin valued at R990 million.
Diversity in our workforce
In South Africa, we conduct our work across many diverse cultures. As such, eliminating prejudice and creating a culture of inclusive diversity is at the heart of all our initiatives. We seek to achieve a more equitable and demographically representative workforce, with particular focus on bringing women into the mainstream of the mining sector.
By the end of 2010, 46% of management positions across our operations were held by historically disadvantaged South Africans and the representation of women in management levels rose to 19% in December 2009. Women now comprise 13% of our total employee population.