INTEGRATED REPORT 2015
SUPPORTING OUR STRATEGY
for sustainable cash flow improvements and returns
OUR MISSION To create value for our shareholders, our employees and our business and social partners through safely and responsibly
exploring, mining and marketing our products. Our primary focus is gold, but we will pursue value creating opportunities in
other minerals where we can leverage our existing assets, skills and experience to enhance the delivery of value.
OUR VALUES
Safety is our first value.
We place people first and
correspondingly put the highest
priority on safe and healthy
practices and systems of work.
We are responsible for seeking out
new and innovative ways to prevent
injury and illness in our business
and to ensure that our workplaces
are free of occupational injury
and illness. We live each day for
each other and use our collective
commitment, talents, resources
and systems to deliver on our most
important commitment .... to care.
We treat each other with
dignity and respect.
We believe that individuals who
are treated with respect and who
are entrusted to take responsibility,
respond by giving their best. We
seek to preserve people’s dignity,
their sense of self-worth in all our
interactions, respecting them for
who they are and valuing the unique
contribution that they can make
to our business success. We are
honest with ourselves and others,
and we deal ethically with all of our
business and social partners.
We value diversity.
We aim to be a global leader with
the right people for the right jobs.
We promote inclusion and team
work, deriving benefit from the
rich diversity of the cultures, ideas,
experiences and skills that each
employee brings to the business.
We are accountable for our
actions and undertake to
deliver on our commitments.
We are focused on delivering
results and we do what we say we
will do. We accept responsibility
and hold ourselves accountable
for our work, our behaviour, our
ethics and our actions. We aim
to deliver high performance
outcomes and undertake to
deliver on our commitments to our
colleagues, business and social
partners, and our investors.
We want the communities and
societies in which we operate
to be better off for AngloGold
Ashanti having been there.
We uphold and promote
fundamental human rights where
we do business. We contribute to
building productive, respectful and
mutually beneficial partnerships
in the communities in which we
operate. We aim to leave a legacy of
enduring value.
We respect the environment.
We are committed to continually
improving our processes in order
to prevent pollution, minimise
waste, increase our carbon
efficiency and make efficient use of
natural resources. We will develop
innovative solutions to mitigate
environmental and climate risks.
1
INTEGRATED REPORT 2015 CONTENTS
“ We strive to generate sustainable free cash flow
improvements and returns to shareholders, after funding
our investment requirements and servicing our debt.”
P3-8
P9-24
P25-41
P42-54
P55-130
P131-156
P157-161
INTRODUCTION
LEADERSHIP
3
4
5
7
About our reports
Directors’
statement of
responsibility
Corporate profile
Highlights of
the year
10
14
15
18
19
23
Chairman’s letter
The board
CEO’s review
Executive
management
CFO’s report
Audit and Risk
Committee:
chairman’s letter
BUSINESS
CONTEXT
26
27
31
35
Business model
2015
Material concerns
and our external
environment
Stakeholder
engagement and
material issues
People are our
business
STRATEGY
43
44
47
Our strategy
Performance
against strategic
objectives
Managing and
mitigating risks
ACCOUNTABILITY
132 Corporate
governance
138 Remuneration and
Human Resources
Committee:
chairman’s letter
140 Remuneration
report
156 Approvals and
assurances
SHAREHOLDER
AND CORPORATE
INFORMATION
158 Shareholder
information
160 Forward-looking
statements
161 Administration
PERFORMANCE
REVIEW
Financial review
Economic value-
added statement
Regional reviews
56
63
64
96
Five-year statistics:
by operation
116 Mineral Resource
and Ore Reserve –
summary
123 Planning for
the future
130 One-year outlook
HOW TO USE THIS REPORT
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2
INTEGRATED REPORT 2015 ABOUT OUR REPORTS
Our suite of 2015 reports is made
up as follows:
Integrated Report
Operational profiles
Sustainable
Development Report
Mineral Resource and
Ore Reserve Report
Annual Financial Statements
Notice of Annual General
Meeting and Summarised
Financial Information
(Notice of Meeting)
Visit our reports website:
www.aga-reports.com
Visit our corporate website:
www.anglogoldashanti.com
Download the full suite of reports
This , the primary document in our suite
of reports, provides a concise overview and
explanation of the performance of AngloGold
Ashanti Limited (AngloGold Ashanti) in terms of
our strategic objectives and the related outlook
for the company. Both financial and non-
financial performance are considered. Individual
business profiles reviewing our performance at
an operational level are also available online.
The was posted to shareholders, in line
with the JSE Listings Requirements and the
requirements of the South African Companies
Act, 71 of 2008, as amended (Companies Act).
The , which is compiled in line with
the Global Reporting Initiatives’ (GRI’s) latest
G4 guidelines, is available together with the
accompanying GRI scorecard. Our
are prepared in accordance with International
Financial Reporting Standards (IFRS) and
information in the is presented in line
with the SAMREC and JORC codes.
A dedicated annual reporting website,
www.aga-reports.com, hosts PDFs of the full
suite of reports to facilitate ease of access by
and communication with stakeholders.
SCOPE AND BOUNDARY
OF REPORTS
The 2015 suite of reports covers the year from
1 January to 31 December 2015. We also report
on any material events that have occurred from
year’s end to the date of the reports’ approval by
the board on 22 March 2016.
The reports cover the entire company and its
main business units and functions, including
our joint ventures and investments, over
which we exercise control or have significant
influence. Performance is reported regionally,
in line with our corporate structure. Full
disclosure is provided for all operations
managed by AngloGold Ashanti. Those
operations in which we have an ownership
interest – Kibali in the Democratic Republic of
the Congo (DRC) and Morila in Mali – which
are managed and operated by Randgold
Resources Limited, our joint venture partner
in these operations, are partially reported in
terms of their safety and environmental and
socio-economic performance. There have
been no significant changes to the scope,
boundary or measurement methods applied
in this report and, where restatements to
comparatives have been made, these are
as indicated.
Although we have a diverse range of
stakeholders, each with their own specific
information requirements, this report is aimed
primarily at investors, financiers and potential
investors. Stakeholders are also referred to
the supplementary reports in this suite and the
, in particular, for additional information.
As this is a group-level report, operational
targets and performance are discussed
at regional rather than per individual site,
although some operational detail is provided
where appropriate. Detailed information,
including maps of our exploration activities of
both our greenfields and brownfields studies,
is available on the AngloGold Ashanti website,
www.anglogoldashanti.com.
Information relating to joint ventures and
other interests is provided for context
and where this is deemed to be material.
Production and capital expenditure are
expressed on an attributable basis, unless
otherwise indicated.
Employee data, average workforce data,
including employees and contractors, are
reported for AngloGold Ashanti with joint
ventures reported on an attributable basis.
Employee and workforce data reported
includes both our employees and contractors.
All-in sustaining costs ($/oz) and all-in costs
exclude stockpile write-offs.
The intense focus on containing and reducing
costs and improving margins continued in 2015,
as did active management of our portfolio.
CORPORATE CHANGES
DURING 2015
The Cripple Creek & Victor (CC&V) mine
in the United States was sold in August
2015. Consequently, CC&V is reported
as a discontinued operation and group
numbers for comparative periods for
the income statements and cash flow
statements have been restated. The
balance sheet (statement of financial
position) remains unchanged.
Obuasi remained on limited operations
in 2015.
The closure process at Yatela
continues and is expected to be
completed in 2019.
3
INTEGRATED REPORT 2015 ABOUT OUR REPORTS continued
THIS INTEGRATED REPORT
As AngloGold Ashanti is a South Africa-
based company with its primary listing on
the Johannesburg Stock Exchange (JSE),
we have been guided in compiling this report
by the International Integrated Reporting
Council’s (IIRC) framework on integrated
reporting, the recommendations of the King
Report on Governance for South Africa 2009
(King III), the Companies Act and the JSE
Listings Requirements.
The content of this integrated report is based
on our overarching strategy, the primary aim
of which is to create value by generating
sustainable free cash flow improvements and
returns. In this report, we describe what we
have done to create value and to achieve our
stated strategic objectives in the past year,
what we have used to do this, what the impact
of these actions has been, the risks affecting
our ability to achieve our strategic objectives,
the circumstances that have affected our
ability to generate value and how well we have
performed towards our goal of creating value.
The risks and material issues discussed in
this report are considered to be those most
likely to affect the group’s sustainability. In
identifying these, we have taken into account
the external environment in which we operate,
our current performance and feedback
obtained from stakeholders during the year.
Further information on AngloGold Ashanti’s
material sustainability issues is presented in
the .
APPROVALS AND ASSURANCE
Several internal processes that include among
others management assurance and reviews by
internal audit of the information and data in our
reports are conducted.
Operations within AngloGold Ashanti
were subjected to risk-based, integrated,
combined assurance reviews focusing
on commercial, safety and sustainability
aspects of the business. The outcome of
these reviews, as well as the independent
technical reviews conducted, provided
reasonable assurance to allow the board, on
the recommendation of the Audit and Risk
Committee, to determine the effectiveness of
the group’s system of internal controls.
The board and executive management consider
the matters discussed in this report to be those
that most influence our ability to successfully
achieve our strategic objectives and manage
the risks we face, and believe that this report
fairly records our performance in the past year.
Note: AngloGold Ashanti reports its group
financial information in US dollars (US$) in all
its reports. Unless otherwise stated, the use of
‘$’ or ‘dollar’ refers to US dollars.
4
“ The risks and material issues
discussed in this report are
considered to be those most
likely to affect the group’s
sustainability.”
DIRECTORS’ STATEMENT OF RESPONSIBILITY
The Board of Directors of AngloGold Ashanti, assisted by the Audit
and Risk Committee, is ultimately responsible for overseeing and
confirming the integrity and completeness of this Integrated Report
and of the entire suite of 2015 reports.
The board, having reviewed and applied its collective mind to the preparation and
presentation of this report, declared that the Integrated Report addresses all material issues
and fairly presents the organisation’s integrated performance and its impacts.
The board, on the recommendation of the Audit and Risk Committee, approved the
Integrated Report 2015 on 22 March 2016.
Sipho M Pityana
Chairman
Wiseman Nkuhlu
Deputy Chairman
Srinivasan Venkatakrishnan
Chief Executive Officer
Christine Ramon
Chief Financial Officer
INTEGRATED REPORT 2015 CORPORATE PROFILE
AngloGold Ashanti, a gold mining
company with a globally diverse,
world-class portfolio of operations
and projects, is headquartered
in Johannesburg, South Africa.
AngloGold Ashanti is the third-largest
gold mining company in the world,
measured by production.
OUR PORTFOLIO OF ASSETS
Our portfolio of 17 mines in nine countries,
comprises long-life, relatively low-cost assets
with differing ore body types, located in key
gold-producing regions. A number of these
assets are strongly leveraged to energy costs
and currencies.
Our operations are grouped regionally as follows:
South Africa (Vaal River, West Wits and
Surface Operations)
Continental Africa (Democratic Republic of
the Congo, Ghana, Guinea, Mali and Tanzania)
Americas (Argentina and Brazil)
Australasia (Australia)
These operating assets are supported by
greenfield projects in Colombia and a focused
exploration programme.
LOCATION OF ANGLOGOLD ASHANTI’S
OPERATIONS AND
ADVANCED PROJECTS
LEGEND
Operations Greenfield projects
5
4
6
7
8
9
3
1
2
AMERICAS
1 Argentina
Cerro Vanguardia (92.5%)
2 Brazil
Serra Grande
AGA Mineração
3 Colombia
Gramalote (51%)
La Colosa
Quebradona (92.4%)
AUSTRALASIA
10 Australia
Sunrise Dam
Tropicana (70%)
CONTINENTAL
AFRICA
4 Guinea
Siguiri (85%)
5 Mali
Morila (40%) (1)
Sadiola (41%)
6 Ghana
Iduapriem
Obuasi (2)
7 DRC
Kibali (45%) (1)
8 Tanzania
Geita
5
SOUTH AFRICA
9 South Africa
Vaal River
Kopanang
Moab Khotsong
West Wits
Mponeng
TauTona
Surface Operations (3)
10
Percentages indicate the
ownership interest held by
AngloGold Ashanti. All operations
are 100%-owned unless
otherwise indicated.
(1) Both Morila and Kibali are
managed and operated by
Randgold Resources Limited.
(2) Obuasi has been on
limited operations since
December 2014.
(3) Surface Operations includes First
Uranium SA, which owns Mine
Waste Solutions (MWS). MWS
is managed and operated as a
separate cash-generating unit.
INTEGRATED REPORT 2015
CORPORATE PROFILE continued
OUR BUSINESS
Our business activities span the full spectrum
of the mining value chain and take into account
the impact of our activities on the varied and
many communities and environments in which
we operate. To maintain and strengthen our
business’s social capital, we aim to create
sustainable value for shareholders, employees,
and social partners through safe and responsible
mining practices and capital discipline.
Over the past three years, the transformation
of AngloGold Ashanti has aimed at increased
efficiencies and competitiveness with a focus
on its safety performance alongside growth
in the production of high-margin ounces,
reduced operating and overhead costs and
positive cash flows. Being cognisant of the
current market environment, and with limited
access to financial capital, we ensure that we
allocate available capital responsibly, in line
with business requirements, while optimising
our internal expertise to aggressively identify
and implement operational efficiencies,
reduce overhead structures, improve capital
discipline and pursue other initiatives to improve
underlying business performance, with an
emphasis on workplace safety. Our overall
focus remains on continued debt reduction to
further strengthen our balance sheet, improve
the quality of our portfolio and unlock value from
the Colombian portfolio and Obuasi.
Our organisational and management structure
is aligned with global best practices in
corporate governance. By using our human
capital efficiently and effectively, group support
functions cover planning and technical,
strategy, sustainability, finance, human
resources, legal and stakeholder relations.
The planning and technical function focuses
on the management of opportunities and the
maintenance of long-term optionality, ensuring
optimal use of our intellectual capital, through
a range of activities that includes brownfields
and greenfields exploration, innovative
research and technology development with a
focus on mining excellence.
EXPLORATION
Our exploration programme is aimed at providing
an organic growth pipeline through which to
create significant value for the company.
Greenfields and brownfields exploration is
undertaken in both established and new
gold-producing regions through managed and
non-managed joint ventures, strategic alliances
and wholly-owned ground holdings. Recent
world-class discoveries include La Colosa,
Gramalote and Quebradona (Nuevo Chaquiro)
in Colombia and Tropicana in Australia.
legislation, great care is taken to ensure the
safe production, transportation and storage
of uranium and sulphuric acid, which are
hazardous materials. For instance, AngloGold
Ashanti complies with the International
Atomic Energy Agency’s (IAEA) safeguards
regarding all its sales contracts and
shipments of uranium.
OUR PRODUCT
While gold is our principal product, depending
on local geological characteristics, several
by-products are also produced, which
make up the sum total of our manufactured
capital. These are silver in Argentina,
uranium in South Africa and sulphuric acid
in Brazil. In compliance with all applicable
Once mined, the gold ore is processed into
doré (unrefined gold bars) on site and then
dispatched to precious metals refineries
for refining to a purity of at least 99.5%, in
accordance with the standards of ‘good
delivery’ as determined by the London Bullion
Market Association (LBMA). This refined gold
is then sold directly to bullion banks.
SHAREHOLDERS
AngloGold Ashanti is an independent gold producer, with a diverse spread of shareholders that
includes some of the world’s largest financial institutions. The Government of Ghana holds a 1.57%
interest in the company.
The respective national governments hold direct interests in our operating subsidiary in Guinea and
joint ventures in the DRC and Mali. In Argentina, Fomicruz, a state company in the province of Santa
Cruz, has an interest in the Cerro Vanguardia operation.
The primary listing of the company’s ordinary shares is on the JSE in South Africa. Its ordinary shares are
also listed on the New York, Australian and Ghana stock exchanges. More detailed information on our
stock exchanges listings is provided in the Shareholder Information section.
At the end of December 2015, AngloGold Ashanti had 405,265,315 ordinary shares in issue and
a market capitalisation of $2.88bn (2014: $3.51bn). Post year-end, at 22 March 2016, the date of
approval of this report by the board, the market capitalisation was $5.54bn.
Geographic distribution of shareholders
as at 31 December 2015 (%)
• United States
• South Africa
• United Kingdom
• Rest of Europe
• Asia
• Ghana
• Rest of world
41
23
17
7
4
1
7
6
INTEGRATED REPORT 2015 HIGHLIGHTS OF THE YEAR
SAFETY
PRODUCTION
EMPLOYEES
FREE CASH FLOW
Both the AIFR and the LTIFR for
2015 were lower than 2014. Safety
remains our highest priority and our
biggest challenge as we relentlessly
pursue effective controls to improve
our safety performance.
Our focus remains on high-margin
ounces rather than on absolute
production levels. We have met annual
production and cost targets for three
consecutive years. We remain one
of the global gold industry’s most
geographically diversified companies.
2015 group AIFR
7.18
(2014: 7.36)
Safety performance by region
(AIFR per million hours worked)
South Africa
Continental Africa
0.5
Australasia
Americas
5.61
10.81
8.56
Annual production (continuing and
discontinued operations)
(Moz)
11
12
13
14
15
4.3
3.9
4.1
4.4
3.9
Contribution to production
by region 2015 (%)
• South Africa
• Continental Africa
• Australasia
• Americas
26
37
15
22
Our strategy is based on a strong
foundation built on safe production,
and attracting and retaining the
industry’s best people. To this
end, a redesign of the incentive
structure is underway to include
a greater focus on and further
tightening of the performance-
related measures we use to assess
and drive the business.
Number of employees
11
12
13
14
15
61,242
65,822
66,434
58,057
52,266
Active cost management along with
strict capital discipline allowed us to
generate free cash flow, despite the
lower gold price environment. This
is a marked improvement on a cash
outflow of $112m in 2014.
Annual free cash flow
($m)
11
12
13
14
15
972
(666)
(1,064)
(112)
141
“ Production of 3.95Moz came
in at the top end of our revised
guidance while all-in sustaining
costs of $910/oz and all-in
costs of $1,001/oz were both
better than guidance.”
7
INTEGRATED REPORT 2015 HIGHLIGHTS OF THE YEAR continued
COSTS
CAPITAL EXPENDITURE
ENVIRONMENT
COMMUNITY
While cost reduction and efficiency
measures provided a buffer against
local inflation, tailwinds from
weakening currencies and fuel
prices helped mitigate an 8% drop in
the gold price and lower production.
1,064
1,088
All-in sustaining costs by region
($/oz)
South Africa
14
15
Continental Africa
14
15
Australasia
14
15
Americas
14
15
968
986
974
815
875
792
In line with our commitment
to responsible environmental
stewardship and to minimising our
impact on the environment, we have
reduced the number of reportable
environmental incidents to four in
2015 – down 20% year-on-year and
an 85% improvement from 2011.
Number of reportable
environmental incidents
27
16
10
11
12
13
14
15
5
4
Our 2015 results show the benefits
of a strong ongoing focus on costs
and capital allocation. Capital
expenditure decreased by 29%
compared to 2014, attributable to
favourable exchange rate movements
in South Africa, Brazil, Argentina and
Australia, as well as planning and
design changes at certain sites and
fundamental cost savings.
Capital expenditure
by region 2015 ($m)
• South Africa
• Continental Africa
• Australasia
• Americas
206
315
78
196
Maintaining positive relations
with communities is essential to
maintaining our social licence
to operate. In line with the need
to understand and respond to
communities socio-economic
challenges, we contributed
$16.8m* to community investment
projects and spent $2.1bn with
local suppliers.
Community investment
by region 2015 (%)
• South Africa
• Continental Africa
• Australasia
• Americas
37
36
2
25
* Includes equity-accounted investments.
8
INTEGRATED REPORT 2015 LEADERSHIP
VALUE
In this section, we present our leadership team,
who review our performance over the past year,
with particular reference to our strategy.
TOWARDS VALUE CREATION
through credible and sustainable business
9
INTEGRATED REPORT 2015 CHAIRMAN’S LETTER
Sipho M. Pityana
Chairman
ANGLOGOLD ASHANTI
SHAREHOLDERS
I find myself once again reflecting on
another challenging year for the world’s gold
mining sector, which completed the fourth
consecutive year of declining gold prices
following bullion’s September 2011 peak. After
several years of leading the way downward for
metal prices, however, it was some comfort
that gold shone relative to the out-and-out rout
that we saw in commodity prices in general
during 2015 with base metals, bulk minerals
and energy all falling victim to slowing demand.
As commodity producers suffered from the
collapse in prices, so too did the fortunes of
many emerging market economies, buffeted by
the twin headwinds of an ailing China and the
first hike in US interest rates since well before
the global financial crisis.
I start this letter by reflecting on the
macroeconomic picture, because the
withdrawal of liquidity from developing countries
and dwindling demand for metals and energy
have hit hard for many companies and
countries alike, including many jurisdictions in
which AngloGold Ashanti is invested.
Brazil, where we operate two important
mining complexes, was downgraded to non-
investment grade status by major credit ratings
agencies. The impact of this rating downgrade
was significant. The diminished pool of available
debt capital and the higher cost of funding
contributing toward an unprecedented collapse
in the Brazilian real, which lost almost half of
its value relative to the US dollar in 2015. The
threats to the trajectory of Brazil’s inflation are
clear, as are the concerns for both the country
and local corporations which face the prospect
of repaying historically high debt commitments
from a weakened currency base.
South Africa, where we produce roughly a
quarter of our gold and where we are domiciled,
was working hard to stave off a similar ratings
fate at the time of writing this note. Our country,
which labours under stubbornly low growth,
soaring unemployment and the world’s most
unequal distribution of wealth, is only a single
downgrade away from similar relegation to
‘junk’ status. While it is not certain South
Africa will be downgraded, it is clear that
Brazil provides an ominous portent of what
lies in store for a currency already suffering the
contagion of the global emerging market and
currency fallout. South Africa’s rand lost fully a
third of its value relative to the dollar in 2015.
To be clear, the dramatic weakening of these
currencies provides a significant and helpful
tailwind to our operations in the short-medium
term. With most of our costs in Brazil and
South Africa denominated in real and rand
respectively, the freefalling currencies help
ensure lower dollar-denominated costs and
wider margins. We are mindful that such gains
are often eroded by the inevitable inflation
that follows, so we are working harder than
ever to make the fundamental changes to our
operations that ensure efficiencies can also be
managed in local currency terms. You will read
more of these efforts elsewhere in this report.
But there is a bigger point to be made in
looking at the struggles of so many of these
emerging markets and the commodity
companies that operate in them. At root of
their current travails is the age-old problem of
too much debt, accumulated during times of
seductively low interest rates. This in itself is
not necessarily a problem unless refinancing
costs rise, or the price for the commodity
produced, declines. Unfortunately for many,
both of these are currently occurring.
You will recall that we identified our balance sheet
as one of the focus areas as far back as 2014.
Back then, despite not being the most indebted
company in the industry, we were among the
first to highlight our debt as unsustainably high,
and to prescribe a range of self-help measures
to reduce these borrowings without resorting
to a dilutive equity issuance. Many others have
since followed suit. This year’s Integrated Report
highlights many of the successes we achieved
in this regard, with our debt shrinking by almost
$1bn, due to the timely sale of CC&V in the
United States and the increased cash flow we
generated, despite the lower average gold price
achieved during the year.
Neither the decision to sell a core mine, nor
the significant restructuring needed to achieve
those margins, were easy calls to make, but
they were critical in ensuring improved long-
term fortunes for the company, its shareholders
and other stakeholders.
10
INTEGRATED REPORT 2015 CHAIRMAN’S LETTER continued
The unanimous decision of the board and
the Executive Committee to pursue a debt
reduction strategy forced some much-needed
introspection into the true health and structure
of the business. It provided further impetus
for us to eliminate wasteful and unproductive
expenditure, streamline sometimes ponderous
structures, vastly improve our capital allocation
practices and adopt a more conservative
outlook. All of these will serve us well in the
future, regardless of the market conditions.
We remain cautious on our debt-bearing capacity
given our view that the prevailing, difficult market
conditions for the broader emerging markets and
mining universe appear structural in nature and
may well persist for some time.
We have seen already how collapsing prices of
commodities from oil to platinum, and copper
to iron ore, have slashed revenue for many
host countries. In many of these countries,
loss-making operations pay less tax. At the
same time, capital-starved companies suspend
projects, greatly reducing foreign direct
investment to jurisdictions in desperate need of
it. It is a difficult situation for countries that place
large reliance on their mining industries.
In this challenging environment, there is a
threat that governments will succumb to the
temptation to plug these revenue gaps by
changing the goal posts for investors – raising
taxes and royalties, or altering other terms
under which companies operate. This may,
after all, appear easier in the short-term than
making the difficult, structural improvements
to economies that will make them stronger
and more competitive in the long-term.
So, instead of using the crisis to pass the
reforms needed to enhance competitiveness
and attract long-term investments, there
is a risk that a more myopic approach to
increasing fiscal and other burdens will have
the opposite effect of permanently raising
discount rates applied by companies to
investment in those territories.
But there are also other, less obvious ways
of extracting additional resource rents. Many
will already be aware that governments in
developing countries are increasingly slow in
remitting value-added tax rebates, building
large balances of cash due to be returned
to companies. You will see evidence of this
lock-up of working capital elsewhere in this
report, but suffice to say, this increases the
cost of doing business, and the returns
needed to make future investments.
In the past year, we were gratified to see
peaceful and fully democratic elections in
Argentina, Tanzania and Guinea. We continue
to hold dialogues with these and other
governments to ensure we remain alive to their
own objectives and needs, while providing
feedback on our requirements and views as
investors seeking the best destination in which
to invest discretionary capital.
As a multi-national mining company, operating
17 mines in nine countries from Argentina and
Brazil in the west, to Australia in the east, and
South Africa in the south to Mali in the north
(and with large-scale growth opportunities in
Colombia), we have throughout this downturn
continued to invest in projects that will secure
our future. Our investment criteria have – out
of necessity – become more stringent as
market conditions have tightened, and we will
continue to look for a clear set of criteria that
our jurisdictions must fulfil if they are to attract
our capital.
Like fund managers, we are constantly working
to make the best capital allocation decisions
possible, and are always confronted with a
choice of where to invest that extra dollar.
Right now, we have several options for
brownfield expansion of our Siguiri mine in
Guinea, a life extension of our Geita operation
in Tanzania or the construction of a new plant
in Mali to revive a two-decade old operation,
which is near the end of its life if there is no
reinvestment. We are looking at the viability
of deepening the shaft system at Mponeng in
South Africa to unlock millions more ounces,
and an even more ambitious plan to revive a
century-old mining district near the town of
Obuasi in Ghana.
In parallel with this, we are progressing the
three large, new projects in Colombia that will
potentially transform the company into one of the
world’s largest mining companies operating in
the Americas.
The fact that there is limited available capital
means there will inevitably be trade-offs. And
in deciding which assets in our portfolio will
benefit from investment, we will be looking
at a suite of requirements that will limit the
ongoing risks related to any mining project,
and enhance the long-term returns. This is
essential if AngloGold Ashanti is to remain
sustainable as a long-term business.
We will look for strong governance and
transparency; improving administrative
capacity in government at local and national
level; clear, consistent fiscal and regulatory
frameworks that provide the long-term
certainty to make large investments in
development of ore bodies and surrounding
infrastructure; and an overarching climate that
allows for strong partnerships, particularly
between government, industry, labour and
communities, to more effectively invest in
social expenditure.
11
INTEGRATED REPORT 2015 CHAIRMAN’S LETTER continued
Also critically important are the host
governments’ commitments to protecting the
rights of investors within a recognised legal
framework. Mining is, by definition, a long-
term game that requires large sums of capital
and often lengthy payback periods. That
requires certainty, security and transparency.
We are certain to avoid any new investment
in a jurisdiction that doesn’t provide a safe
and secure environment in which to operate –
regardless of the vagaries of market cycles.
But this is not a one-way street. As a responsible
corporate citizen, we will also have a list of
necessarily onerous commitments to uphold. We
will agree on our social commitments, pay taxes
and continue to invest in both the operation and
community development throughout the cycle,
to ensure that our hosts see the benefit of our
mining activities. We will aim to operate safe
mine sites and be responsible stewards of the
environment. This consistency on the part of the
investor is critically important in order to show
that we – like the governments and communities
who host us – are in it for the long run.
This year we continued on our improving
trajectory with regard to the environment,
reporting four incidents compared to five in
2015. That takes the improvement since 2007
to 92%. As regards safety, our highest priority,
we fell well short of our goal of achieving
‘zero harm’ across our business, with an
unacceptable 11 workplace fatalities recorded
during the year. The board of directors sends
its heartfelt and sincere condolences to the
families, friends and loved ones of those
who died. This number of fatalities is by any
measure unacceptable. While notable progress
had been made since 2007, when the number
of fatalities declined significantly by over 80%
from 34 to six in 2014, regrettably, this historic
performance deteriorated in 2015. Although
disappointed by this increase in the number
of fatalities, we remain fully committed to
investing the time and resources to abolish the
scourge of workplace injuries from our mines
and plants. At the same time, we recognise
the enormous strides that have been made
to this end with our all injury frequency rate,
the broadest measure of safety performance,
showing another annual reduction from
7.36 per million hours worked in 2014 to
7.18 for 2015.
Many of you will be aware that we agreed a
three-year wage deal with the majority of our
South African workforce this past year, the
longest duration yet for such a deal. We entered
these talks with our four major unions – the
National Union of Mineworkers (NUM), the
Association of Mineworkers and Construction
Union (AMCU), Solidarity and the United
Association of South Africa (UASA) – with the
intention of shifting the discussion away from
previous, more confrontational wage talks
characterised by wide initial gaps in what is
being asked for and what is being offered, and
incremental moves toward a settlement.
Together with our major peers in the sector,
Harmony and Sibanye, we proposed an
Economic and Social Sustainability Compact with
mutually agreed economic viability parameters
that support the gold industry’s ability to provide
job security and social benefits to employees,
enabling them to share in the future of the
industry. The compact also included a set of
new methodologies and principles to guide co-
operation between employers, employees and
their organised labour representatives, to help
secure the future of the industry and the jobs
within it.
Although we believe that the proposed
compact offers a better opportunity for
sharing the spoils and woes in our industry,
unfortunately, the unions declined the offer
of deeper co-operation with the industry,
under the compact, and instead chose to
revert to normal bargaining. We countered
with a higher-than-usual opening offer that
was close to the final accord with NUM,
UASA and Solidarity, which together with the
7% of non-unionised employees, accounted
for 66% of our workforce. The deal, which
saw an above-inflation increase, provides for
guaranteed wages for entry-level employees
(excluding bonuses and overtime) to rise to
around R106,000 per annum in the third year
of the agreement.
In addition, employees would continue to
receive their incentive-based pay, in the
form of bonuses and overtime, which can
12
INTEGRATED REPORT 2015 CHAIRMAN’S LETTER continued
materially increase cash remuneration – and
especially so in the current environment which
has seen rand-denominated gold prices at
record levels.
As in the previous round of talks in 2013,
AMCU declined to sign the wage agreement,
and continued their 2013 challenge to our
ability as an industry, to ‘extend’ this agreement
to their members under Section 23.1(d) of
the Labour Relations Act. The Labour Appeal
Court subsequently ruled again in our favour
and dismissed AMCU’s appeal. We welcome
the decision as it is in the best interests of
employees, the companies concerned and the
industry as a whole.
We believe that three years of certainty on wage
agreements provides much needed stability
for us to improve the operational consistency
of our South African operations. We believe
that this also provides the right environment for
our employees to take advantage of the higher
gold price environment to increase the variable
proportion of their remuneration, which has the
potential to significantly augment remuneration.
It’s in our mutual interest to ensure an enduring,
symbiotic relationship.
In early March 2016, we took an important
step toward resolving some of the legacy
claims against the company with respect to
occupational lung disease (OLD). Between
October 2012 and April 2014, AngloGold
Ashanti received 1,256 individual summonses
relating to silicosis and other OLD. I’m
pleased to report that on 4 March 2016,
together with Anglo American South Africa,
we reached a settlement agreement with the
claimants, through their counsel, for full and
final settlement – with no admission of liability
– of those individual claims brought against
AngloGold Ashanti and the 4,388 individual
claims brought against Anglo American
South Africa. Further information regarding
the settlement is available on our website at
www.anglogoldashanti.com/en/Media/news/
Pages/20160304_Silicosis.aspx
We firmly believe that agreeing these settlement
terms is in the best interests of the claimants,
their families, and the company. All have a
common interest in settling this highly-complex
case that could take several years to resolve
through litigation. It should be noted that this
settlement agreement is not related to the
pending class action certification application that
is currently before the courts. The court is still
to determine whether or not a class action law
suit is the appropriate way to hear this action.
Judgement on this matter is still pending.
The mining industry acknowledges that OLD is
of significant importance for the sector and the
country. We, along with several of our industry
peers, have also convened a working group
to address issues relating to compensation
and medical care for OLD in the South African
gold mining industry. The companies in this
working group are in the process of engaging
all stakeholders in order to co-operate in the
design and implementation of a comprehensive
solution to compensation for OLD that is both
fair to past, present and future gold mining
employees, and sustainable for the sector.
In closing, we find ourselves in a strong
position relative to where we’ve come from
in recent years, and relative to many of our
peers. We have done hard work to restructure
the business, strengthen the balance sheet
and manage risk across the portfolio. I can
assure you that, despite the success we’ve
enjoyed over the past three years, the board
is clear in its intention to continue supporting
the executive team in its push for further
improvements across the business. Venkat,
our Chief Executive Officer, is clear in his note
to shareholders in this same report, that there
is a busy to-do list that he and his team will be
attending to in 2016 to unlock further value.
2015, though we devoted significant effort and
resources to improving safety, the outcomes
were below par. This critical area will receive our
undivided attention in the year ahead. We must
do better.
Finally, I extend my thanks to our CEO
Venkat for his exceptional leadership and
commendable delivery on our strategic
commitments over the past year, executed
under the difficult market conditions with
which the mining industry has been faced
over the past few years. He would be the first
one to remind me that without the fantastic
management team he leads, none of this
would have been possible. I agree, we are
lucky to be endowed with such great talent.
I also acknowledge the continuous support
of and thank my fellow board members for
their contribution over the past year. Together,
we will be unrelenting in our efforts to ensure
that the business flourishes in the long term,
regardless of market conditions, for the benefit
of all stakeholders.
Be assured that our efforts will be firmly rooted
in our values, which remain sacrosanct for every
one of our employees working in this business
– they are non-negotiable and will remain so. In
Sipho M. Pityana
Chairman
22 March 2016
13
INTEGRATED REPORT 2015 THE BOARD
Independent non-executive directors
1:
Sipho Pityana
(Chairman)
2.
Wiseman Nkuhlu
(Deputy chairman)
3. Albert Garner
4. Rhidwaan Gasant
5. Dave Hodgson
6. Nozipho January-Bardill
7. Michael Kirkwood
8. Maria Richter
9. Rodney Ruston
Executive directors
10. Srinivasan Venkatakrishnan
(Chief Executive Officer)
11. Christine Ramon
(Chief Financial Officer)
Company secretary
12. Maria Sanz Perez
3
9
4
10
2
7
12
5
8
6
1
11
Length of service on the board (%)
HDSAs (%)
Experience (%)
Gender
• Less than two years
• From two to eight years
• More than eight years
27
46
27
• HDSA
• Non-HDSA
• Non-South African
45
10
45
• Mining/finance
• Mining
• Finance
• Executive management
10
27
27
36
14
73%
Male
27%
Female
INTEGRATED REPORT 2015
CEO’S REVIEW
Srinivasan Venkatakrishnan
Chief Executive Officer
FELLOW SHAREHOLDERS
After another busy year for the team at
AngloGold Ashanti, it falls to me to provide an
update on our progress in delivering on our
commitments made a year ago to you, the
owners of this company. In this regard it may
be useful to revisit our strategy, which has
guided us since its launch in 2013. We believe
this strategy, which has at its core the delivery
of sustainable cash flow improvements and
returns, will deliver shareholder value in both
bear and bull markets. It is underpinned by five
simple business objectives that have served us
well over the past three years, namely:
• a strong foundation, built on safe production,
attracting and retaining the industry’s
best people and fostering a practical and
progressive sustainability model
• placing enormous importance on balance
sheet strength and flexibility
• a constant focus and delivery on production
improvements, cost management and
sound capital discipline
• a constant drive to consistently manage and
improve the quality of our portfolio
• remembering always that mining is a long-
term game, therefore ensuring we keep
long-term optionality, at an affordable cost,
firmly on our radar
AngloGold Ashanti remains one of the global
gold industry’s most geographically diversified
companies. In 2015, roughly one-in-every
four ounces of our production came from
our mines in South Africa, with three times
that amount coming from our international
operations, as we continued to improve the
balance of our portfolio.
Our presence in Brazil, Argentina, Australia
and South Africa (collectively two-thirds
of our production base) ensured we were
able to offer good leverage not only to gold
prices, but also to weakening currencies in
those jurisdictions. That means that while
we will certainly benefit from a rising dollar-
denominated gold price, we can also flourish
in a weaker gold price scenario that typically
brings along with it weaker currencies in
Australia, Brazil, Argentina and South Africa.
The sharply weaker oil price also provided
a welcome tailwind, particularly for open-pit
operations and those mines, mostly in Africa,
where we generate our own electricity. We
remained well positioned to benefit from prevailing
macro-economic conditions, characterised by
the strong dollar, weaker commodity prices and
currencies, and lower oil prices.
Production of 3.95Moz came in at the top end
of our revised guidance while all-in sustaining
costs of $910/oz and all-in costs of $1,001/oz
were both better than guidance. When looking
back to the end of 2012, the performance is
all the more remarkable. All-in costs have more
than halved since then and all-in sustaining
costs have come down by almost half, from
around $1,700/oz. This achievement comes
despite a struggling South African business,
which we expect to turn around in the coming
year, providing us another good opportunity to
drive average costs for the business lower.
Our active cost management, along with
strict capital discipline, allowed us to generate
free cash flow of $141m for the year, even
after incurring costs of $61m related to the
successful tender offer for a portion of our high-
yield bonds. We applied the proceeds from
the sale of CC&V, plus surplus cash generated
by the business, to further reduce borrowings.
This left net debt 30% lower at the end of 2015,
compared with the end of the previous year.
We have, very clearly, been more than up to
the challenge of ensuring that we can make
money – even in a severe bear market – without
compromising long-term optionality.
Looking back a year ago, we were certainly not
the mining industry’s most indebted company
by any means, but we were among the first
to commit to a range of self-help measures
to lower debt from internally generated cash,
without diluting shareholders. I am pleased to
report that we delivered on most of our self-help
measures, including margin improvements, cost
savings throughout the business, and the sale
of a core asset for full value.
After taking the difficult decision to sell CC&V
to Newmont Mining Corp., we achieved the
very good price of $819m, plus a future royalty
stream on potential underground production.
We received the proceeds in August 2015 and
moved quickly to deploy most of the cash in a
15
INTEGRATED REPORT 2015 CEO’S REVIEW continued
successful tender offer to buy back $779m of
our high-yield bonds at a reasonable premium
of only 7.5%, almost five years before they are
due to mature. In each of those five years we
will save about $60m in interest payments, and
also significantly reduce refinancing needs at
the bonds’ scheduled maturity date in 2020.
A long-term solution at Obuasi, including
the search for a partner and completion of a
feasibility study into its redevelopment, as well
as a search for a strategic partner (or partners)
to participate in our projects in Colombia, remain
works-in-progress. While Colombia represents an
excellent long-term value option for the company,
the current depressed market conditions for
greenfield project developments dictate that
we further rationalise annual expenditure, while
moving these projects up the value curve.
We’ve done very good work over the past three
years – and particularly in 2015 – to transform
the balance sheet from an existential risk to
a growing competitive advantage. We’ve
lowered debt by a third in the past year, we
ended 2015 with ample liquidity in our cash
and facilities, and we have no material US
dollar-denominated bonds maturities until 2020.
We will, nevertheless, continue our work to
strengthen the balance sheet further in 2016.
Consistent delivery on our commitments to the
market is another growing advantage. We have,
month by month and ounce by ounce, built
a strong track record of reliable performance,
despite facing stiff headwinds in a challenging
operating environment. We stretched our record
of delivery to 12 consecutive quarters, wherein
we either met or beat our production and cost
targets. We have also, for the first time in our
history, met our annual production and cost
targets for three years in a row.
But as strong as the operational performance
was in 2015, our safety performance was
simply not at the level we demand. Safety
was – and remains – both our highest priority
and our biggest challenge. This is particularly
so in South Africa, which accounted for nine
of the 11 tragic fatalities recorded during the
year compared to four out of six in 2014. The
regression in fatalities is especially upsetting
for all of us in the company, given the marked
improvements made in the preceding two
years. We have continued to invest significant
effort, time and resources into understanding
the root causes of these accidents, and also
in understanding the causes of near-miss,
or high-potential incidents, where fatalities
were narrowly avoided. In looking at the
broader safety performance, however, we are
heartened by the continued improvements
to our all injury frequency rate which ended
the year at its lowest ever level of 7.18 per
million hours worked. I can assure you that our
resolve to eliminate workplace deaths from our
mines is stronger than ever.
Our performance across our other
sustainability metrics was very good indeed,
with continued improvements in all key areas.
We again eclipsed the record performance in
2014 of the fewest reportable environmental
incidents logged, with four in 2015 compared
to five the previous year and 27 in 2011.
We remained diligent in our work to improve
relationships with host communities and
governments, and ended the year with 15
reportable community incidents, down from
61 in 2011. There is a wealth of detailed
sustainability-related information in our .
As we return to overall operating performance,
our international operations have distinguished
themselves in helping push the portfolio from
near the top of the industry cost curve in 2012
to its current position in the lower half. The
South African operations, which were severely
hampered by scores of lost operating days
linked to safety stoppages, did not fare as well
as in 2014 and were consequently our highest-
cost operations in 2015, when they averaged
an all-in sustaining cost of $1,088/oz.
While our international portfolio has fared
exceptionally well in outpacing the peer
group, we believe that the next step-change
improvement in the portfolio will come from
the South African assets, which will help
drive the performance of the group toward
the industry’s lowest-cost quartile. The
performance of these deep-level assets in the
fourth quarter, when all-in sustaining costs
fell nearly $200/oz from the previous quarter,
show they have the potential to provide a
positive surprise in 2016.
At an operating level, we have a busy work
schedule in this coming year. In South Africa,
as you would expect, getting to grips with our
safety performance underpins all of the other
turnaround efforts across the region.
We’re also extending the Project 500 from
our international operations to the South
African region, where it has only had limited
application thus far. We believe that we
can extend the success you’ve seen in our
international operations, and at year-end our
teams were already working on efficiency
improvement initiatives, tighter labour and
contractor management, debottlenecking of
key projects and targeting a range of off-mine
cost savings of at least R500m.
Chris Sheppard and his team will also continue
to establish the production platform created
by the Below 120 level life extension project
at Mponeng, our long-term cash engine in
South Africa, which was delayed by the safety-
related disruptions of the past 18 months.
16
INTEGRATED REPORT 2015 CEO’S REVIEW continued
When you put all of these pieces together, you
will see the building blocks are in place for us
to deliver a 10% uplift in production from the
South African region compared to 2015, with
a commensurate improvement in costs. The
weaker exchange rate evident since December
2015, may provide additional benefit.
Ron Largent has a similarly busy schedule
regarding the international operations in 2016,
in identifying areas of further improvement and
ensuring that potential is realised. Together
with teams in Australasia, South America and
Continental Africa, we’ll be looking to advance
a slate of opportunities, which includes an
exciting brownfields project at Siguiri, that
will deliver a life extension well into the next
decade, taking annual production from Guinea
up to around 300,000oz and dropping all-in
sustaining costs to around $900/oz. We get all
of that for a little over $100m. This is precisely
the kind of project we like, leveraging of an
existing capital base and providing high returns
on the capital we invest.
We’ve also taken the initial steps toward
developing the underground mine at Geita,
our lowest-cost operation, and are putting
the final touches on an incremental capital
project at Sunrise Dam that will allow us to
tap the significant resource potential of our
Vogue underground discovery. At Iduapriem,
in Ghana, we will continue the successful work
of 2015 that added long-term ounces, life
and margin. And in Brazil, now amongst our
top cash generating regions, we are getting
into the higher grades at the Serra Grande
operation, which confirms the geological thesis
that drove our purchase of the remaining 50%
of this asset a few years back.
There is a lot more work underway which
makes it evident that our internal pipeline of
low-capital/high-return brownfield project
opportunities has never looked better.
At a corporate level, our ‘to do’ list for 2016
is also a busy one. Our top priority is to
effect the turnaround at our South African
operations. We will also continue to target
efficiency and cost improvements across
every corner of the business to further improve
margins and cash flow, which will be applied
prudently to further reduce debt. These efforts
will not ease, despite the improvements seen
in the gold price at the beginning of 2016.
Obuasi will occupy a disproportionately higher
weighting in our list, despite the fact that it
is not in production. The next steps include
further optimising our feasibility study into
the mine’s potential redevelopment, ensuring
the restoration and maintenance of law and
order on site, and securing the full package
of regulatory consents and approvals needed
before we seek a joint venture partner that
will be critical to our participation in the
mine’s redevelopment1.
Looking ahead, there are clear cash flow
benefits that stem from the hard work and
restructuring we have completed so far. These
improvements stem from:
• the early part repayment of our high-yield
bonds, which has cut our interest bill by
almost a third
• our cost reductions – both through
fundamental improvements and leverage to
oil and currency – which have helped widen
profit margins
• lower planned expenditure in both Colombia
and Obuasi, compared to last year
And that’s before we take into account the
tailwinds we can see from a gold price that
continues to look stronger, and currencies in
our key operating jurisdictions which remain at
historically weak levels, creating a sweet spot
for our business.
AngloGold Ashanti’s investment case is
stronger than ever, with several catalysts that
we are methodically ticking off.
We have a high-quality portfolio of long-life,
gold assets with strong leverage to gold
price, energy and currencies. We are a
transparent and decisive management team
that is focused on delivery and returns.
We set ambitious goals, achieve them,
and set a higher hurdle for the next round
of improvements.
17
1 Continental Africa regional review
We continue to prioritise margins over
production growth with relentless cost and
capital discipline. Our decisive actions to
date have provided us with the much needed
balance sheet flexibility, an area in which we
will seek further improvements in 2016.
My sense of business optimism expressed a
year ago was largely borne out in 2015, when
a strong fundamental performance drove
an equally strong share price performance,
relative to our peers. I see little reason for this
optimism to wane during 2016, particularly
with the strong support we continue to receive
from our Chairman, board, our executive and
senior management teams, and the tireless
dedication and hard work of so many among
our about 52,000-strong group of truly world-
class employees in AngloGold Ashanti, to all of
whom I am very thankful.
Finally, I express my gratitude, and that of
the board, as I bid farewell to Mike O’Hare
who had a distinguished career at AngloGold
Ashanti for close on four decades. Mike
retired in September 2015. I thank him for this
immense contribution to the company and the
industry as a whole, and wish him well.
Srinivasan Venkatakrishnan
Chief Executive Officer
22 March 2016
INTEGRATED REPORT 2015 EXECUTIVE MANAGEMENT
5
6
8
3
2
1
7
4
9
AngloGold Ashanti’s
executive management team
(Executive Committee) comprises
nine members of whom two are
executive directors.
This committee oversees the day-to-day
management of the group’s activities
and is supported by country and regional
management teams as well as by group
corporate functions.
1.
Srinivasan Venkatakrishnan
(Chief Executive Officer)
2. Christine Ramon
(Chief Financial Officer)
3. Chris Sheppard
Gender
4.
Italia Boninelli
67%
Male
33%
Female
5. Charles Carter
6. Graham Ehm
7. Ron Largent
8. David Noko
9. Maria Sanz Perez
Length of service by
executive management (%)
HDSAs (%)
• Less than five years
• From five to ten years
• More than ten years
45
10
45
• HDSA
• Non-HDSA
• Non-South African
33
22
45
Experience (%)
• Mining
• Executive management
• Mining/finance
• Mining/strategy
• Finance
• Human resources
33
23
11
11
11
11
18
INTEGRATED REPORT 2015
CFO’S REPORT
Christine K. Ramon
Chief Financial Officer
We continued to deliver on our
self-help measures as reflected
in the strong set of annual results
beating market consensus views
in most areas. Improved cost
metrics, together with lower debt
levels, resulted in improved cash
flow generation in the group. This
provided the flexibility required in
the current volatile environment.
• Strong gains in adjusted headline earnings
and free cash flow, despite the 8% drop in
gold price
• Production of 3.95Moz – at top end of our
revised guidance range
• Total cash costs of $712/oz – 9% lower
year-on-year
• All-in sustaining cost of $910/oz – 11%
lower year-on-year
• All-in cost of $1,001/oz – 10% lower
year-on-year
improvements to $141m, compared to an
outflow of $112m in 2014
• Net debt reduced by 30% year-on-year to
$2.2bn, due to the effect of self-help measures
EXECUTIVE SUMMARY
As was the case in 2013 and 2014, the year
under review was marked by a further fall in
the gold price. The average price decreased
by $106/oz or 8% over the course of the past
year. In 2015, the situation was exacerbated
by a decrease of 489,000oz or 11% in group
attributable production (from continued and
discontinued operations). The negative
impact of these factors was substantially
mitigated by significant cost discipline
applied and cost savings achieved through
the Project 500 (P500) initiative, as well as
greater focus on capital allocation and project
delivery, while ensuring sustaining capital
is maintained; coupled with the favourable
impact of weaker local currencies and
reduced Brent Crude oil prices. The net result
of the above was an improvement in all-in
sustaining costs per ounce by 11% year-on-
year; and 24% from 2013.
• Corporate costs of $78m – down 15% from
$92m in 2014
• Adjusted headline earnings of $49m
compared to a loss of $1m in the prior year
• Capital expenditure of $857m – down 29%
from $1.2bn in 2014
• Full year free cash flow shows significant
One of our five core strategic focus areas is
to ‘ENSURE FINANCIAL FLEXIBILITY’ which
means structuring our balance sheet to allow
us to meet our core funding requirements and
to provide a reasonable buffer for gold price
volatility as well as other adverse unforeseen
events. The successful conclusion of the sale
of CC&V to Newmont during August 2015
generated proceeds of $819m which was
applied to part settle our $1.25bn, 8.5% bonds,
thereby reducing the outstanding bonds to
$471m. As a result, net debt was reduced by
30% and our net debt to adjusted EBITDA ratio
decreased to 1.49 times, in line with our group
target of 1.50 times.
The group’s balance sheet is efficiently
structured and the debt has long-dated
maturities. Apart from the R750m bonds
maturing in 2016, which forms part of our
Domestic Medium Notes Term Programme
(DMNTP) and the R1.5bn Revolving Credit
Facility (RCF) which matures in December
2018, the earliest bonds’ maturity date is in
April 2020. The issuer’s call on the remaining
8.5% high-yield bonds can be exercised from
July 2016 onwards, at the group’s discretion.
The group remains committed to finding
long-term solutions for the redevelopment of
Obuasi in Ghana and its projects in Colombia.
Various alternatives are being considered,
with joint venture partnerships still the
preferred route to be followed.
Our taxation expenses decreased during
the year through considerable effort. Our
transparent group tax policy supports a low-
risk approach in dealing with tax matters.
AngloGold Ashanti’s credit rating by Moody’s
Investor Service was updated on Friday,
11 March 2016. Moody’s reaffirmed our rating
at Baa3, and improved the outlook from
19
INTEGRATED REPORT 2015 CFO’S REPORT continued
negative to stable. Standard and Poor’s rating
(S&P) of BB+, with a negative outlook, remains
unchanged from 2014. The Moody’s rating
places the company’s credit at the lowest level
of investment grade and S&P has the company
at the top level of sub-investment credit grade.
The S&P rating is scheduled for review in 2016.
CONTINUED FINANCIAL
FLEXIBILITY
The $819m proceeds received on the
disposal of CC&V in August 2015 helped
reduce the net debt levels in the group by
30% compared to 2014. At 1.49 times, we
Debt maturities
have now reached our target net debt to
adjusted EBITDA ratio of 1.5 times through
the cycle, and we compare favourably to our
peers in this regard.
We believe that the ample headroom to our
covenant levels of 3.5 times net debt to
adjusted EBITDA, our strong liquidity, sufficient
undrawn facilities as reflected below and our
long-dated debt maturities provide us with
the financial flexibility required in the current
volatile environment. We are well positioned to
successfully steer a course through moderate
gold price declines or other unforeseen events,
within reason.
Debt type
Debt facilities as at 31 December 2015 ($m)
Maturity date
Base currency
Net debt/Net debt to adjusted EBITDA 1
2.99
2.95
3.13
3.15
3.08
Covenant 3.5x
2.29
2.19
Undrawn facilities
At 31 December 2015
1.8
1.7
1.94
2.02
1.95
1.54
1.49
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Net debt to adjusted EBITDA
Net debt ($bn)
1 Adjusted EBITDA based on last 12 months.
Ratio based on restated numbers
• $800m
• $484m cash
• R2,408m
• A$365m
$1.69bn
2
Total undrawn
2 Total calculated with ZAR facility
excluding DMTNP at R15.5/$,
AUD facility at 0.70$/A$. The cash
balance is at 31 December 2015.
A$ RCF
US$ RCF
ZAR RCF
and demand
facility*
64
64
64
5.375% bonds
8.500% bonds
5.125% bonds
6.50% bonds
98
98
98
200
200
200
220
220
220
365
365
365
471
471
471
300
300
300
300
300
300
700
700
700
700
700
700
471
471
471
750
750
750
750
750
750
Drawn amount Facility amount
1,000
1,000
1,000
Jul 2019
Jul 2019
Dec 2018
to Dec 2020
Apr 2020
Jul 2020
Aug 2022
Apr 2040
AUD
USD
ZAR
USD
USD
USD
USD
Due to the long-dated maturities of our
existing debt, we have the opportunity
to plan and execute strategies for the
redemption or renegotiation of our existing
debt arrangements on terms favourable to the
group. As a result of the early redemption of
the high-yield bonds, we have saved 30% on
our annual interest bill.
We continue to view the early redemption
option on the remaining high-yield bonds at
the end of July 2016 as an opportunity to
2016 with the aim of further reducing the
interest bill in order to improve sustainable free
cash flows and returns.
DELIVERY AGAINST 2015
FINANCIAL OBJECTIVES
1. Continue to focus on self-help
measures (including the potential sale
or joint venture of an operating asset) to
deleverage the balance sheet in order to
maintain sufficient liquidity and flexibility
in a lower gold price environment
further reduce our debt. However, since there
is no external pressure to do so, we will keep
In 2015, we introduced our focus on ‘self-help
measures’ in three areas:
all options open in this regard. Our objective
• The review of the asset portfolio while
* Excludes our South African DMTNP, where we have drawn R750m of the R10bn facility
remains to prioritise further deleveraging in
actively seeking joint venture partnerships in
20
INTEGRATED REPORT 2015 CFO’S REPORT continued
Colombia and at Obuasi in Ghana as well as
pursuing the potential sale or joint venture of
an operating asset
that most of our cost base in those countries
is denominated in the local currencies, while
our gold is sold in US dollars.
• Cash flow improvements through the
optimisation of business plans and
consolidation of regional hubs
• Leverage to exploit weaker currencies, the
consequently higher price in terms of these
currencies and lower fuel prices
The year under review reflects that we have
succeeded in most of these areas, with
the exception of concluding joint venture
partnerships in Colombia and at Obuasi.
Cash flow improvements have been noted
in 2015, despite a decrease of 8% in gold
price and 11% lower production for the year
under review, mainly the result of weaker local
currencies; the benefits of the P500 cost
savings initiatives; and the lower Brent crude
oil price. Free cash inflow for the year, on an
adjusted basis, amounted to $141m, which is
the first year of free cash generation since 2011.
The weakening of the South African rand,
Argentinean peso, Brazilian real and
Australian dollar, as well as the lower Brent
crude oil prices, were beneficial to us given
Our sensitivities to the oil price and currencies,
which are issued with caution, are as follows:
• Every 1% average change in our currency
basket impacts input costs by ~$6/oz
• Every $10/bbl change in the average Brent
Crude oil price impacts input costs by ~$8/oz
2. Focus on financial and project risk
mitigation by seeking joint venture
partners for Colombia and Obuasi
On 16 September 2015, we concluded
a conditional investment agreement with
Randgold Resources (Randgold) aimed at
the formation of a joint venture to redevelop
and operate our Obuasi gold mine in Ghana.
Under the terms of the agreement, Randgold
would have led and funded a development
plan designed to rebuild Obuasi as a viable
long-life mine. The development plan would
have built on a feasibility plan prepared by
us and would have ultimately led to the
formation of a joint venture responsible for
funding the redevelopment of Obuasi, with
Randgold acting as operator of the mine.
On 21 December 2015, we announced the
termination of the conditional investment
agreement since the proposed investment did
not meet Randgold’s investment criteria.
As a result, improvements were identified
and we have subsequently developed a plan
to finalise the feasibility study and continue
with the limited operating phase at the
mine at a reduced spend. Our focus will be
proceeding to secure an investment package
for Obuasi, and limit the spend in this limited
operations phase from $106m in 2015 to
approximately $70m in 2016.
Due to the current depressed global
mining environment, the appetite of other
players in our industry to enter into joint
venture arrangements in Colombia, on
a number of our promising greenfields
projects, has dissipated. As a result, our
exploration efforts in Colombia, including
the prefeasibility study at La Colosa,
are progressing under a reduced spend
programme, while maintaining long-term
optionality within the country. We will be
significantly reducing our expenditure
in Colombia from $73m in 2015 to
approximately $44m in 2016.
3. Review the asset portfolio with a view
to rebalancing the portfolio with more
profitable ounces
A review of the asset portfolio, with a focus on
more profitable ounces is ongoing. Specific
focus remains on finding appropriate solutions
for the redevelopment of mining operations
at Obuasi and the continued funding of our
Colombian exploration portfolio. However, we
continue to consider the contribution of every
operation within the group.
4. Maintain our focus on cost and capital
discipline to deliver competitive all-in
sustaining costs and all-in costs
In response to weaker gold prices, the
group has over the last two years adopted a
number of measures focused on sustainably
reducing the cost associated with producing
gold. These initiatives have covered a broad
spectrum of activities, including a greater
focus on capital allocation and project delivery
within set group targets and hurdle rates, while
ensuring that sustaining capital is maintained
in order to not compromise the business
in the longer term. Internal cost reduction
improvements have been further assisted by
tailwinds from weakening local currencies
in the environments in which we operate
21
INTEGRATED REPORT 2015 CFO’S REPORT continued
and lower oil prices which have assisted in
negating inflationary and structural pressure.
We have seen all-in sustaining costs fall 24%,
from $1,195/oz in 2013 to $910/oz in 2015.
Over the same period we have also been able
to substantially improve our position on the
industry’s cost curve.
The group’s cost performance reflected
improvements in several key areas, including
direct operating costs, corporate overheads,
exploration expenses and capital expenditure.
The P500 initiative, launched in mid-2013 to
save $500m in direct operating costs over
18 months, has surpassed that target and
has now been embedded in the international
operations as an ongoing business
improvement initiative. The P500 team is
now in the beginning phases of implementing
a range of efficiency initiatives at the South
African operations in 2016.
The P500 initiative, supported by weaker
local currencies and the lower Brent crude
oil price observed during 2015, resulted in
our all-in sustaining costs per ounce margin
improving to 21% in 2015 from 19% in
2014, with our all-in cost per ounce margin
reflecting a similar improvement to 14% in
2015, from 12% in 2014.
5. Continue to target sustainable cash
generation. For 2015, significant cost
reductions have been included in the
annual business plans
Our efforts on cost reduction, supported by
weaker local currencies and a decrease in
the oil price, assisted us in achieving positive
free cash flow (on an unadjusted basis) for the
year under review. We require these results to
be sustained over longer periods of time, and
therefore will continue to target sustainable
cash generation, including the recovery of slow
remitted value-added taxation rebates and the
off-setting of indirect taxes, thereby releasing
working capital lock-up.
FINANCIAL OBJECTIVES
FOR 2016
Looking ahead to 2016, the key financial
objectives are to:
• maintain our focus on cost and capital
discipline to deliver competitive all-in
sustaining costs and all-in costs
• further enhance margins and cash flow
through continuing focus on self-help
measures and efficiency improvements, as
well as further utilisation of weaker currency
and oil prices
• further decrease Obuasi expenditure, while
finalising an investment agreement and
thereby reducing holding costs
processes will remain unchanged. This
initiative will help reduce costs and keep the
focus on value-adding business initiatives.
• further decrease Colombia expenditure,
while maintaining optionality and moving
the projects in that country up the
value curve
• continue to target sustainable cash
generation
• reduce the annual interest bill
• further deleverage our balance sheet in the
coming year
CHANGE TO HALF-YEARLY
REPORTING
Consistent with the majority of South African
domiciled mining companies, AngloGold
Ashanti has decided to move to half-yearly
reporting. This will result in the disclosures
for the three-month periods ending 31 March
and 30 September consisting of abbreviated,
selected operational and financial data. The
six-month periods ending 30 June and
31 December will be prepared in terms of IAS
34 (Interim Financial Reporting) on a basis
similar to the process adopted for interim
reporting in prior years. Importantly, the internal
management reporting and governance
ACKNOWLEDGEMENT
The 2015 financial year is the first full financial
year that I have been the Chief Financial
Officer at AngloGold Ashanti. I am supported
by a strong and diligent financial team who,
through their understanding of the challenging
economic environment, continue to assist me
to proactively manage the financial position
of the company. In addition, we have been
able to deliver quality financial information to
our stakeholders, which reflect our objectives
and values for long term success. I would like
to thank our strong and enthusiastic financial
team for their ongoing support and look
forward to the year ahead.
Christine Ramon
Chief Financial Officer
22 March 2016
22
INTEGRATED REPORT 2015 AUDIT AND RISK COMMITTEE: CHAIRMAN’S LETTER
1 Corporate Governance
The Audit and Risk Committee can
confirm that the financial and risk
management information provided
in this accurately reflects the
information that has been reported
to the committee by management.
Nothing has come to the attention of the Audit
and Risk Committee to make it believe that the
systems of internal control and internal controls
over financial reporting are not adequate in
their design and effective in their operation to
provide management with a sound basis to
prepare financial reports that are reliable and
free of material misstatement. The Audit and
Risk Committee has based its conclusion in this
regard on the reports received from external
audit, internal audit and executive management
through the combined assurance process.
EXTERNAL AUDITOR
INDEPENDENCE
In order to safeguard the independence of
the external auditor, the formal policy on the
approval of all non-audit related services has
been revised, approved and re-implemented.
In terms of the policy, the Audit and Risk
Committee has established that the sum of
the non-audit and tax fees in a year must not
exceed 40% of the sum of audit and audit-
related fees. The Audit and Risk Committee
received a quarterly update on tax and non-
audit fees as a percentage of total audit and
Audit, audit-related, tax and
non-audit fees for 2015 ($m)
• Audit services
• Tax services
• Non-audit services
7.25
0.65
0.20
audit-related fees and are comfortable that
the external auditor’s independence had not
been jeopardised.
TRANSFORMATION OF
EXTERNAL AUDIT
In the spirit of AngloGold Ashanti’s commitment
to transformation, the Audit and Risk
Committee closely monitors and guides
transformation within the context of the external
audit. The current auditors, EY, are Level 2
contributors. Under the guidance of the Audit
and Risk Committee, certain of AngloGold
Ashanti’s subsidiaries, such as MWS, an entity
acquired in July 2012 for $335m, and the
Environmental Rehabilitation Trust Fund, with
a gross asset value of R1.2bn ($78m), are
audited by Nexia SAB&T (a Level 2 contributor).
In addition, Nexia SAB&T also conducts audit
work on the South African operations, under
the supervision of EY.
23
PROCEEDINGS AND
PERFORMANCE REVIEW
During 2015, the Audit and Risk Committee
met formally six times and all members of the
committee attended the meetings. For attendance
details, see Corporate Governance section 1.
THE YEAR AHEAD
In 2016, the Audit and Risk Committee will
continue to monitor:
• the maturity of the internal control and internal
control over financial reporting environments
• key financial accounting and reporting
requirements that can impact on the group
as well as overseeing the change from
quarterly reporting to half-yearly reporting
• further refinement of the maturing combined
assurance process of the group
• overseeing the successful implementation of
SAP at Iduapriem, Geita and Siguiri, in the
Continental Africa region
• management of key strategic risks by the
executive management team
• the activities of internal audit, external audit,
compliance and whistle-blowing
CONCLUSION
The Audit and Risk Committee is satisfied
that it has considered and discharged its
responsibilities in accordance with its mandate
and terms of reference during the year under
review. For a more detailed report on the
activities of the Audit and Risk Committee,
refer to the .
Rhidwaan Gasant
Chairman: Audit and Risk Committee
22 March 2016
Rhidwaan Gasant
Chairman: Audit and Risk Committee
INTEGRATED REPORT 2015 AUDIT AND RISK COMMITTEE: CHAIRMAN’S LETTER continued
HIGHLIGHTS OF
RESPONSIBILITIES
DISCHARGED DURING 2015
Quarter one
• Evaluated the performance of the external
auditors and nominated the appointment of
Ernst & Young Inc. (EY) as external auditors
to the shareholders
• Assessed the expertise and experience
of the Chief Financial Officer and the
finance function
• Reviewed the management representation
letter
• Reviewed and approved the annual
integrated report for recommendation to
the board
• Reviewed and approved the 2014 annual
financial statements and Form 20-F
• Reviewed and approved the internal audit
charter and performance objectives for 2015
• Reviewed and recommended for approval
the annual Mineral Resource and Ore
Reserve report
• Assessing management’s assessment of
impairments of assets and goodwill
• Considered the dividend proposal put
forward by management
Quarter two
• Assessed the performance of the SVP: Group
Internal Audit and the internal audit function
• Held closed session with internal audit,
external audit and management
• Considered the accounting treatment for the
• Reviewed and approved for
sale of the CC&V operation in the
United States
recommendation to the board the Audit and
Risk Committee’s terms of reference
• Update on JSE Listing Requirements
• Assessment of the going-concern statement
• Assess the implementation of the combined
• Received a technical update on changes in
• Approval of the revised policy on non-audit
assurance model
financial reporting standards
• Received a detailed update from the
Compliance Officer on compliance with
legislation and ongoing training
• Reviewed the global insurance renewal
process and commented on potential gaps
services
• Considered actions taken by management
to address a matter of non-compliance to
the JSE Listing Requirements relating to
the for 2014. No restatement
was required.
Quarter three
• Considered and approved the external
auditor’s integrated audit plan and
associated fee budget
• Considered the accounting treatment for
the proposed joint venture with Randgold
Resources on Obuasi as well as accounting
for part settlement of the high-yield bonds
• Considered and discussed the company’s
approach in terms of cyber defence
• Considered for recommendation to the
At all meetings
• Received quarterly reports from:
• Internal audit and external audit
• Sarbanes-Oxley compliance
• Financial results of the quarter and
tax exposures
• The Risk Manager and had detailed
discussion on an agreed risk theme
• The Chief Information Officer on IT
governance
board the Group Delegation of Authority and
appointment of the Public Officer
• Received a technical update on changes in
• Subsidiary Audit and Risk Committee reports
• Whistle-blowing reports and outcomes
• Review and approval of the quarterly
financial reporting standards
financial statements
During 2015, the Audit and Risk Committee
continued to assess the impact of staff
reductions in 2013 and 2014, obtaining
assurance from both executive management
and internal audit that the internal control
environment has not been negatively impacted.
Management has established and maintains
internal controls and procedures, which are
reviewed by the Audit and Risk Committee
and reported on through regular reports
to the board. These internal controls and
procedures are designed to identify and
manage, rather than eliminate, the risk of
control malfunction and aims to provide
reasonable but not absolute assurance
that these risks are well managed and that
material misstatements and/or loss will not
materialise. The Audit and Risk Committee
closely monitored the actions implemented
by management during 2015 to enhance
the AngloGold Ashanti combined assurance
model and to ensure integration between the
various in-house assurance providers.
• Considered the company’s listing on other
Quarter four
stock exchanges
• Considered the results of the 2014 self-
assessment results of the committee
• Considered the accounting treatment for the
intended sale of CC&V in the United States
• Received a detailed update from the
Compliance Officer on compliance with
legislation and ongoing training
• Approved the annual internal audit and
• The Treasurer on the gold market
• Group Legal Counsel on all material
litigations and the impact on financial
reporting
• The Group Tax Manager on tax exposures
for the group and management of these
combined assurance plan
• Approval of non-audit services
24
INTEGRATED REPORT 2015 BUSINESS CONTEXT
VALUE
In this section, we review our business model in
light of the environment within which we operate,
related material issues, risks and stakeholders.
TOWARDS VALUE CREATION
through credible and sustainable business
25
INTEGRATED REPORT 2015 BUSINESS MODEL 2015
AngloGold Ashanti’s operating and
business activities extend across
the full spectrum of the gold-
mining production pipeline – from
exploration through to processing,
production and sales. Our four
principal areas of activity are:
• Discovering and assessing the economic
viability of gold-bearing ore bodies
• Developing and mining the economically
viable ore bodies identified
• Processing the ore mined to extract gold
and any resulting by-products
• Producing and selling the gold and
by-products produced
In conducting our business, we require and
make use of various resources, or capitals,
the use of which in turn has consequences
and produces corresponding outputs in terms
of these same capitals. We manage the use
of these resources as efficiently as possible to
achieve the desired outcomes in line with our
strategy and value creation and in particular
regarding the generation of sustainable free
cash flow and returns. The outputs and
impacts of our business activities can also be
measured in terms of these capitals.
INPUTS
OUTPUTS
OUTCOMES
IMPACTS
CAPITAL RESOURCES
N
N
N
N
N
N
F
F
F
F
F
F
M
M
M
M
M
M
H
H
H
H
H
H
I
I
I
I
I
I
S
S
S
S
S
S
Natural
Financial
Manufactured
Human
Intellectual
Social
26
INTEGRATED REPORT 2015 MATERIAL CONCERNS AND OUR EXTERNAL ENVIRONMENT
We have identified those external
factors which affect and have the
potential to affect our ability to
deliver on our strategic objectives.
gold price throughout the year and when the
FOMC finally raised rates at its 16 December
2015 meeting, the gold price fell sharply
following the announcement, despite the fact
that it had been widely anticipated.
This enables us to highlight emerging issues that
influence the short- and long-term economic
viability and sustainability of our business, to
prioritise these factors, to address them and to
better manage their effects.
Discussed below are those issues in the
external environment that have had the most
impact on our business in 2015 – the gold
market, capital markets, regulatory uncertainty,
stakeholder expectations, our social licence
to operate and competition for resources
and infrastructure – and that are expected
to continue to influence AngloGold Ashanti’s
performance in the year ahead.
THE GOLD MARKET
During 2015, financial markets focused on
trying to predict the start of the normalisation
of the interest rate environment in the United
States. Economic data releases were closely
evaluated, as were minutes from the US
Federal Reserve’s Open Market Committee
(FOMC) meetings for clues to confirm the
timing of interest rate hikes. Speculation
around the timing of a possible increase in US
interest rates unfortunately weighed on the
However, as year-end approached, the price
managed to claw its way back from multi-year
lows on heightened fears of further global
macro-economic risks. Further uncertainty
regarding the state of China’s economy as
well as that of Europe caused markets to
reassess their projections of future interest
rate increases in the United States, helping to
underpin a modest recovery in the gold price.
Physical gold demand in 2015 was very much
a story of two halves. The first half of the year
saw very tepid demand. However, the fall in the
gold price around mid-July saw demand return
strongly in what is traditionally a slow period for
physical offtake. Another sharp drop in the price
in November had a similar effect in stimulating
demand. Although overall physical demand in
2015 was down on the previous year, it is still
encouraging to note that physical demand does
cushion falling prices.
Investment demand, as evidenced by
exchange traded funds, continued to wane
through 2015 with a total liquidation of 119t
recorded for the year. However, this is far from
the outflows recorded for 2013 (903t) or even
2014 (155t).
Official sector buying continued in 2015 as
central banks sought to continue diversifying
their reserve assets. Arguably the most notable
announcement came from China in July when
they revealed that Chinese gold reserves had
grown 50% since 2006, taking their holdings
to 1,658t. Since this announcement the
People’s Bank of China has begun regular
reporting updates on its gold holdings and
these indicate that the Chinese central bank
continues to accumulate gold.
Another notable buyer from the official sector
was Russia, which announced a purchase of
77t in the third quarter taking its total tally for
the first nine months of 2015 to 144t.
CAPITAL MARKETS
Given the current economic downturn and
slump in the commodity cycle and in investor
sentiment towards resources companies, access
to capital remains a challenge. The resources
equity markets remain difficult, especially for gold
producers (including, in particular, producers in
emerging markets) and gold equity valuations
continued to decline in 2015.
AngloGold Ashanti’s primary strategic
objective is to generate sustainable free
cash flow improvements and returns, which
is aided by deleveraging and strengthening
the balance sheet and generating cash
internally by minimising costs, among
Average monthly gold price ($/oz)
(January 2015 to December 2015)
22 Jan 2015
$1,302/oz
Daily peak for the year
1,500
1,200
900
Jan 2015
Source: Bloomberg
27
17 Dec 2015
$1,051/oz
Daily low for the year
Dec 2015
INTEGRATED REPORT 2015 MATERIAL CONCERNS AND OUR EXTERNAL ENVIRONMENT continued
others. Improving the balance sheet leads to
improved creditworthiness, which facilitates
capital raising should this be necessary. If
the group succeeds in generating sufficient
cash flow, any potential need to raise capital
is reduced. This is particularly important given
the likelihood of continued increases in interest
rates in South Africa and in the United States,
and the recent revision to a negative outlook of
South Africa’s sovereign credit rating by ratings
agencies Fitch and Standard & Poor’s.
to transition the mine to limited operations.
The APMO also allows for a feasibility study
to be conducted and finalised, to outline
redevelopment requirements and the future
potential of Obuasi. We are currently working
with the Government of Ghana to confirm an
investment development agreement in terms
of which the project will be developed. We
continue to optimise our feasibility study on
the limited operating phase in parallel with the
other processes underway.
AngloGold Ashanti has thus far managed to
deleverage its balance sheet through its self-
help measures. We substantially reduced debt
and related interest payments in August when
we sold CC&V and used the proceeds to
redeem a portion of our high-yield bonds.
REGULATORY UNCERTAINTY
Regulatory uncertainty makes it less attractive
to do business or to invest in a country. It also
complicates competitiveness and adds to the
difficulty of attracting investors.
In July 2014 in Ghana, AngloGold Ashanti
submitted an Amendment to the Programme
of Mining Operations (APMO) for the Obuasi
mine to the Ministry of Lands and Natural
Resources to cover the period from October
2014 to December 2015. The minister
approved the APMO in November 2014, which
allowed AngloGold Ashanti to complete the
retrenchment of Obuasi’s entire workforce and
In South Africa, the mining environment is
governed by legislation to redress some of
the social and economic imbalances of the
past. AngloGold Ashanti’s South African
mineral rights are subject to the Mineral and
Petroleum Resources Development Act
(MPRDA), the Mining Charter and social and
labour plans, and the interpretation of this
legislation, which establishes the framework
for the transformation of the mining industry.
This uncertainty may increase fears of non-
compliance and handicap our ability to deliver
on our strategy. The work done to ensure
compliance with the Mining Charter under our
social and labour plans is set out in the .
When the Mining Charter reached the end of
the second five-year commitment period at the
end of 2014, our South African operations were
audited and we received commendations for
work done in achieving the targets. However,
the revised Mining Charter is yet to be agreed
between government and the mining industry,
increasing investors’ unease. In addition,
there is no certainty on the principle of black
economic empowerment (BEE), with respect
to whether the principle of “once empowered,
always empowered” will be observed. In 2015,
the minister in the Department of Mineral
Resources stated that mining companies
had not achieved the 26% black ownership
level mandated by the current Mining Charter.
The Chamber of Mines disagreed with this
statement based on its own analysis. In March
2015, the Chamber of Mines, on behalf of the
mining industry, sought a declaratory order from
the High Court to obtain clarity on this issue.
The case was due to be heard in court on
15 March 2016 but was postponed.
A ruling has yet to be made on the outcome.
The threat of regulatory changes, such as
the outcome of the interpretation of BEE
ownership, increases uncertainty, particularly
among investors, and can affect the long-term
sustainability and viability of the company.
On the new amended Broad-Based Black
Economic Empowerment (B-BBEE) Act
and Codes on the Mining Industry, we have
engaged with the Department of Trade
and Industry (DTI), through the Chamber of
Mines, with respect to the impact thereof and
how these will be aligned to the soon-to-be
revised New Mining Charter and MPRDA.
The amendments to the B-BBEE Act are
now fully operational and the B-BBEE Act
is the primary law in all black economic
empowerment policy and legislation, with
the MPRDA now subject to that policy on
all matters covered in the B-BBEE Act.
However, in October 2015, the DTI gazetted
a 12-month exemption to the DMR, pending
the industry’s conclusion of the revised Mining
Charter or Code. Through the Chamber
of Mines, we are actively providing input
to government on the development of the
anticipated new Mining Charter.
The long-awaited White Paper on National
Health Insurance (NHI) was released late in
December 2015, and the window for public
comment is open until end March 2016. We
contributed to a collective industry submission,
which will be co-ordinated by the Chamber of
Mines and Business Unity South Africa. The
private healthcare industry is concerned about
the affordability of NHI, and the proposed
funding plans put forward by National Treasury.
A final decision on the timing of the
implementation of the proposed carbon tax
in South Africa is still pending. AngloGold
Ashanti was an active participant in extensive
industry engagement with government around
the proposed carbon tax. A draft bill on the
proposed carbon tax was released in the
second half of 2015. We do not anticipate the
introduction of this tax having an immediate,
significant impact on our business. However, it is
28
INTEGRATED REPORT 2015 MATERIAL CONCERNS AND OUR EXTERNAL ENVIRONMENT continued
possible that the tax may have a nominal impact
on production costs as a result of increases
in supplier costs. Nevertheless, our continued
efforts and commitment to reducing energy use
and emissions are particularly pertinent in light of
the proposed tax. The South African government
proposes bringing the tax into effect in 2017.
In other operating jurisdictions, carbon taxes
or trading schemes, as well as the regulation
of greenhouse gas (GHG) emissions, are being
considered. AngloGold Ashanti will determine
the likely impact of these when sufficient
details are available.
In Argentina, inflationary pressures continue
to have an operational impact. The previous
regulatory concerns around import restrictions
have abated, with no more limitations on
imports of goods and services.
In 2014, anti-bullying legislation came into
effect in Australia under the Fair Work Act. In
response, the Australia region developed and
began rolling out a training programme for all
employees during 2015 entitled Fairness @
AGAA. The Fairness @ AGAA programme
assists participants in understanding unlawful
discrimination, harassment and workplace
bullying and aligns with equal employment
opportunity best practice in helping to provide
a workplace that is free of discrimination and
harassment. Training has been well received
at our operations and we expect the entire
workforce to have received training by mid-2016.
Over the past two years our operations
in Brazil have implemented training for all
employees in compliance and ethics, with
a particular focus on anti-bribery and anti-
corruption. The training forms one of the
key elements of the compliance programme
and incorporates online training, printed
materials and seminars. Senior managers have
also been trained with regard to the Clean
Company Act. In 2015, training was extended
to contractors and government intermediaries
in particular.
The JSE has joined other stock exchanges to
raise awareness on and to promote gender
equality, in collaboration with the UN Global
Compact South Africa Network and the
International Finance Corporation, among
others. In August 2015, the JSE Listing
Requirements were changed to give effect
to this. With effect from 1 January 2017, all
JSE-listed companies will be expected to have
a policy on the promotion of gender equality
at board level and to disclose company
performance in line with this policy.
LABOUR RELATIONS
UNCERTAINTY
On 20 January 2014, the Association of
Mining and Construction Union (AMCU)
served strike notices to three gold companies
(including AngloGold Ashanti), challenging the
extension of the 2013 wage agreement to its
members. An interim interdict was granted
to the Chamber of Mines by the Labour
Court in Johannesburg on 30 January 2014,
declaring the intended strike unprotected and
prohibiting unprotected strike action as well as
any conduct that might encourage workers to
embark on strike action. AMCU was ordered
to return to court on 14 March 2014 to explain
why the interim interdict should not be made
permanent. This deadline was postponed to
5 June 2014. On 23 June 2014, the Labour
Court ruled in the companies’ favour by
upholding the interim interdict. Subsequently,
AMCU appealed this ruling to the Labour
Appeal Court. On 24 March 2016, the Labour
Court dismissed AMCU’s appeal, ruling in
favour of the Chamber of Mines.
POLITICAL UNCERTAINTY
During the year there have been successful
elections and political transition in Tanzania,
Guinea and Argentina. In November, elections
went peacefully with Argentina’s opposition
candidate elected as the country’s president.
This was the first change in more than a decade
for Argentina, ending the rule of the Peronist
Party most recently led by President Cristina
Kirchner. Tanzania elected and inaugurated its
fifth president, Dr. John Pombe Magufuli, in
November. In Guinea, president Alpha Condé
was re-elected for a second term, receiving
enough votes to avoid a run-off in the second
democratic presidential contest since Guinea
gained independence from France in 1958.
In 2016, Ghana and the Democratic Republic
of the Congo are expected to hold elections.
We remain cautiously optimistic in that
these elections will be conducted fairly
and peacefully.
SOCIAL LICENCE TO OPERATE
Our social licence to operate refers to the
level of acceptance by local communities
and stakeholders of AngloGold Ashanti and
its operations.
We strive to contribute positively to the future of
communities in which we operate. The longer-
term objective is for host communities to be
self-sustaining long after individual mines have
ceased operations. To this end, we:
• invest in communities
• promote local procurement
• focus on local employment and skills
development
We aim to engage constructively and
transparently with all stakeholders, including
local communities and local and national
governments, as and when necessary.
Communities in different countries have
different needs and priorities but the
symbiosis between mine and community
does not change – we rely on each other.
And, by progressively deepening our
understanding of each other’s needs and
challenges, we increase mutual support.
29
INTEGRATED REPORT 2015 MATERIAL CONCERNS AND OUR EXTERNAL ENVIRONMENT continued
Water
South Africa is a water-stressed country.
The pressure on available water supplies
has been exacerbated by fast-rising
domestic demand as increasing numbers
of people migrate from rural to urban areas.
In addition, a drought has reduced water
levels in the country’s dams and rivers, with
consequential water restrictions in several
urban and mining sectors. Against this
background, our mines have for many years
been responsibly using this scarce resource
and proactively lessening consumption by
recycling water and using groundwater
draining into underground operations that
would otherwise have been discharged.
“Clean-dirty” water separation principles
are applied and rainwater is kept away from
operations as much as possible.
Additionally, some of the mines adjacent to
our South African operations have closed
and ceased pumping of underground water,
which accumulates and threatens to flood
our operations. Consequently, we have
taken over the pumps at one of these mines
neighbouring our West Wits operations and
have installed additional infrastructure to
cope with the extra water that would reach
our shafts.
We provide potable water to neighbouring
communities at several operations, especially
in the Continental Africa region.
In Australia, a careful approach to water
management is essential in the arid
environment in which our mines are located
and where any available groundwater is
highly saline. To deal with this, the borehole
infrastructure at Tropicana was expanded in
2015 to increase water abstraction capacity
and to meet operational requirements. Where
potable water is required, for example at the
accommodation villages at both Australian
mines, or for specialised tasks in the
processing plants, it is desalinated.
In Minas Gerais, Brazil, severe water shortages
were experienced in 2014 and 2015, adversely
affecting hydro-electrical power generation and
the volumes of water our mines were allowed
to use. However, concerted water recycling
efforts have enabled the mines to avoid
production slowdowns.
Electricity
The gold mining sector is a significant user
of energy, and a stable and affordable power
supply is critical for our business. For many
years, we have implemented energy saving
measures at all our operations – underground,
on surface and in employee residences.
demand periods. We are a member of the
Energy Intensive Users Group and collaborate
with the Chamber of Mines and other
stakeholders to support the national electricity
network and minimise disruptions. Our mines
have back-up generators that ensure employee
safety in case of an emergency and prevent
infrastructural damage during outages.
Ghana is currently experiencing an energy
crisis, leaving the majority of its population
with limited access to power. Although the
government is looking to address these
issues, financial constraints and the lack
of an established power sector have led to
significant setbacks. However, this is unlikely
to have a major impact on our operations in
that country during 2016 as Obuasi’s limited
operating status will greatly reduce usage
and Iduapriem, which was affected to a
limited extent in 2015, continues to optimise
energy consumption.
Mali is facing country-wide electricity
challenges that may have an impact on our
projects going forward. However, we continue
discussions on the availability of low-cost
power with the Malian government.
The generation capacity of South Africa’s
national power utility, Eskom, is severely
constrained, and this is expected to be the
case for some years to come. Our operations
engage directly with Eskom to manage outages
and curb power usage during national peak-
In Australia, a 293km-long gas pipeline
has been constructed to provide a source
of clean power generation at both mines,
reducing exposure to diesel price volatility
and establishing a long-term reliable supply
of power.
30
USE OF SCARCE RESOURCES
– WATER AND ELECTRICITY
Water and electricity are both crucial
to our mines’ operational safety and
efficiency, and one or both are under
stress in several of the countries in which
we operate.
INTEGRATED REPORT 2015 STAKEHOLDER ENGAGEMENT AND MATERIAL ISSUES
Stakeholder engagement is an
inclusive, continuous two-way
process between our company and
the people or organisations that are
affected by our business.
Effective engagement with stakeholders is
a prerequisite to establishing and sustaining
mutually-beneficial stakeholder relationships.
Such relationships are essential to us
maintaining our social licence to operate.
Our stakeholders are those people and/
or groups who are affected, either directly
or indirectly, by our business activities and
also those who can affect the outcomes
of our operations and projects. Our
stakeholders are many and varied, and
include, among others:
• employees, their families and unions
• communities, their representatives,
NGOs and other civic and religious
organisations
• governments and regulators
• shareholders, investors and financiers
• suppliers, industry peers and joint
venture partners
• the media
The process of stakeholder engagement
encompasses a range of activities and
approaches throughout the life cycle of
our operations, from exploration through
to closure.
At AngloGold Ashanti, our stakeholder
engagement aims to build meaningful
relationships, to demonstrate that we have
listened, understood and, where practicable,
that we have responded positively to
stakeholders in a way that creates mutual
value. We view our stakeholders as important
partners and continuously strive to interact
with them directly.
Below we discuss our engagement with our
principal stakeholder groupings.
ENGAGING WITH EMPLOYEES
We endeavour to engage with employees
regularly to ensure we grow and maintain
a positive, respectful work environment in
which people feel valued, supported and
are able to give of their best. In response
to our 2014 employee engagement survey,
which had identified, among others, three
areas requiring attention, namely, senior
leadership practices, ethics and managerial
effectiveness, a range of interventions have
been implemented at both regional and
country level.
31
INTEGRATED REPORT 2015 STAKEHOLDER ENGAGEMENT AND MATERIAL ISSUES continued
1 People are
our business
2 Material concerns and
external environment
3 South Africa
regional review
We conduct broad consultation with
employees, trade unions and communities
on issues affecting each group. For example,
in the South Africa region, we have regular,
direct engagement with employees, particularly
miners and all underground staff.
Such engagement includes the quarterly Future
Forum meetings, run by the Chief Operating
Officer: South Africa, at both the West Wits
and Vaal River operations, at which a range of
employee concerns are discussed. These are
3 and
detailed in the South Africa regional review
our overall employee engagements are detailed
in ‘People are our business 1.
We also recognise and engage with organised
labour and afford our employees access to
collective bargaining, working closely with
union representatives to achieve stability and
ensure mutually beneficial outcomes from
our interactions.
During 2015, AngloGold Ashanti reached
a three-year wage agreement with the
majority of employees in South Africa through
participation in the centralised collective
bargaining structures with unions and the
Chamber of Mines (on behalf of
the companies).
The wage negotiations were concluded without
any strike action or loss of production. See
Material concerns and our external environment 2
and the South Africa regional review 3.
In the Continental Africa region, we
maintained a positive labour relations climate
during 2015, despite a small number of
grievances lodged by union leadership
at Iduapriem in Ghana and Siguiri in
Guinea. At each operation, stakeholder
engagement activities are ongoing between
site management and the recognised trade
unions, with the support of the Continental
Africa regional office.
In Mali, annual wage negotiations and a
review of the existing collective agreement
began in 2015, and discussions between
management and two recognised trade
unions are currently underway. A stable and
peaceful labour relations climate has been
maintained at our operations.
In Tanzania, the labour relations climate
remained positive during 2015 and the
2016 wage negotiations were concluded
successfully and ahead of schedule with all
parties approving a one-year agreement.
Main focus areas of engagement:
• Employee safety and health
• Wages and benefits
• Employee indebtedness
• Accommodation and living conditions
ENGAGING WITH COMMUNITIES
Engaging with communities entails establishing
dialogue between the company and host
communities with open communication
channels for debate and information sharing.
We provide a platform for communities to share
their priorities and to communicate concerns.
We understand the importance of communities’
ability to access AngloGold Ashanti. We seek to
facilitate this access and to develop solutions,
with communities where possible, that respond
to the unique cultural landscape of each country
and area in which we operate. This we do
using our community engagement standards
while maintaining open dialogue, for example at
Obuasi, where we have in place a community
consultative committee. Our commitment is to
ensure mutually-beneficial relationships with
host communities. Further detail on this is
available in the .
Main focus areas of engagement:
• Socio-economic challenges
• Local procurement
• Local economic development projects
• Infrastructural development and the sharing
of benefits
• Current and legacy health issues
• Integrated closure planning
• Talent management and skills development
• Artisanal and small-scale mining and
• Job security
• Human rights
illegal mining
• Human rights
32
• Land access and resettlement
• Environment and health impacts
ENGAGING WITH GOVERNMENTS
AND REGULATORS
We contribute to the national fiscus of, and
economic growth in, the countries in which
we operate, by generating foreign exchange
and tax revenues, and by creating jobs and
local procurement. The breakdown of our
contributions and payment to governments in
each country is provided in the . In all our
work in support of growth and development
opportunities, we engage with governments
and representative agents on a regular basis.
These engagements cover various issues
depending on the country in question, and may
include regulatory matters, state participation
in the mining sector, tax and fiscal policy,
employment equity, and beneficiation.
This engagement may be direct or through our
participation in industry forums, such as the
Chamber of Mines in South Africa. In this way
we are able to be proactive regarding regulatory
changes that may affect our business. It also
gives us the opportunity to inform authorities
about our industry and share our perspectives,
while building and strengthening good
relationships with regulators. For example,
in South Africa, recent engagement has
included the proposed carbon tax laws; the
new amended Broad-Based Black Economic
Empowerment Act and Codes on the Mining
INTEGRATED REPORT 2015 STAKEHOLDER ENGAGEMENT AND MATERIAL ISSUES continued
1 Material concerns and our
external environment
2 Continental Africa
regional review
3 Continental Africa
regional review
Industry, and the revised Mining Charter and
amendments to the Mineral and Petroleum
Resources Development Act – also see Material
concerns and our external environment 1.
In addition to ongoing engagement with
government, we also engage on specific
matters when necessary. For example, at
Siguiri, current engagement with government
is focused on obtaining approvals for
construction of a combination plant to
improve performance of the current plant and
extend the life of mine, on which a feasibility
study was recently completed. Approval to
begin construction is still subject to, inter
alia, the conclusion of discussions on the
Convention de Base, a stability agreement
with the government of Guinea. See the
Continental Africa regional review 2.
In Ghana, Mali and Tanzania, we engage
extensively with the governments on the
issue of illegal miners. See Continental Africa
regional review 3.
In dealing with stakeholders, AngloGold
Ashanti upholds the principles of good work
conduct and ethics, and has a zero tolerance
policy on bribery and corruption.
We are also committed to transparency and
regulatory compliance in all payments to
governments, and we adhere to the objectives
of the Extractive Industry Transparency
Initiative (EITI), a global standard to promote
open and accountable management of
natural resources, while seeking to strengthen
government and company systems in order
to inform public debate and build trust. The
EITI standard is supported by a coalition of
governments, companies and civil society.
For further detail on engagement with
government and regulators, particularly
regarding our policy on anti-bribery and anti-
corruption, see Compliance within an evolving
regulatory framework in the .
Main focus areas of engagement:
• Compliance in an evolving regulatory
framework
• Planned closures
• Wage negotiations and economic health
of industry
• Labour relations
• Local development
• Illegal mining
• Mining Charter compliance
• Legacy issues
• Safety
• Environmental performance
ENGAGING WITH SUPPLIERS,
INDUSTRY PEERS AND JOINT
VENTURE PARTNERS
We collaborate and build mutually-beneficial
relationships with our industry and joint venture
partners. We develop sustainable relations
with our suppliers for economic viability. Our
33
collaboration with industry partners includes
working through industry groups (including
the Chamber of Mines in South Africa),
to engage government, labour and other
key stakeholders regarding the long-term
sustainability of the industry.
In South Africa, we also work together with
our peers at sector level to engage and
inform the market, media, employees and
communities on new developments, the
work done by the industry and plans in place
for the industry’s future. An example of this
is This is Gold, an initiative undertaken by
certain gold producing companies in South
Africa. More information on this is accessible
on www.thisisgold.co.za. This is Gold
provides insight into the South African gold
industry, its processes and its contribution to
the country’s economy, among others.
We engage regularly with our joint venture
partners as we endeavour to optimise each
mine’s performance and extend mine life
where possible. We also continue to explore
partnership opportunities with potential future
partners via joint ventures or partnerships at
some operations, such as Obuasi, and/or
projects, such as in Colombia.
Suppliers of services or goods are another key
stakeholder. In the interests of business longevity
and of good relations, we encourage our suppliers
and contractors to embrace sustainability
practices in the way they do business.
Our procurement processes include a
disciplined, transparent and ethical way of
doing business. Aside from our own efforts
to support local business, we encourage our
contractors to do the same. All contractors and
suppliers to AngloGold Ashanti are required to
abide by our Supplier Code of Conduct, which
is aligned with our internal compliance policies
and standards of ethical behaviour. This is
available to all suppliers.
We ensure that our suppliers and contractors
are compliant with global standards, and that
their business philosophy and operational
specifics are in line with our Human Rights
Policy. As of 2015, AngloGold Ashanti suppliers
were required to complete a self-assessment
questionnaire, an important first step towards
ongoing dialogue on responsible sourcing. See
Respecting Human Rights in the .
We also participate in Project Phakisa, an
initiative by the Presidency in South Africa
to bring together government, the mining
industry and other stakeholders to discuss
the outlook for the sector and to plan for
its continued survival in the long term. An
initial planning session was held towards
the end of 2015. Future developments
regarding Project Phakisa include obtaining
agreement on the way forward and
implementing the agreed plan, followed
by monitoring, reporting and evaluation of
progress made.
INTEGRATED REPORT 2015 STAKEHOLDER ENGAGEMENT AND MATERIAL ISSUES continued
We have worked closely with suppliers, advising
them on capacity building requirements and
raising business standards in order to help
them qualify as potential vendors. This includes
meeting fundamental responsibilities in the
areas of human rights, labour, environment and
anti-corruption.
We also support our suppliers in line with each
country’s laws and regulations. Increasing local
procurement – a priority at all our operations –
is a focus of supplier engagement. For example,
at Geita in Tanzania, we are piloting a project
that encourages our large global suppliers to
channel more of their procurement spend into
local economies.
In South Africa, as part of the national
development goals, we encourage potential
suppliers to form appropriate joint ventures to
facilitate transformation in business ownership.
Our work in this area will be intensified with the
implementation of our enterprise development
centres, which are business hubs designed
to provide information, training and business
services to small business. See also the
for more details on the local economic
development work we do.
• Human rights
• Regulatory concerns
• Compliance with our policies, standards and
our Supplier Code of Conduct
• Encouraging global suppliers to promote
local procurement
Industry peers and joint
venture partners:
• Economic outlook
• Gold market
• Proposed legislation
• Industry labour relations
• Operational and financial performance
ENGAGING WITH THE
INVESTMENT COMMUNITY
Our investment community includes
shareholders, financiers, analysts, investors
and potential investors. We communicate
regularly, in person and by phone or
email, at our quarterly and annual results
presentations, conference calls, site visits,
investor conferences and at one-on-one
meetings.
Main focus areas of engagement:
Suppliers:
• Financial performance and business
sustainability
In all our engagements with the investment
community, we ensure compliance at all times
with the regulations of the various exchanges
on which we are listed.
Given the current economic environment –
low commodity prices and negative investor
sentiment towards resources stocks –
access to capital is a challenge. As a result,
management has implemented a range of
self-help measures in recent years to reduce
debt and improve financial flexibility, without
resorting to a dilutive equity issuance.
In 2015, a core asset was sold to reduce debt
and we successfully completed a tender offer
for a portion of the high-yield bonds and thus
reduced our interest expense. We maintained
our cost discipline and significantly reduced
operating and overhead costs to improve free
cash flow to ultimately create enhanced value
for shareholders.
Main focus areas of engagement:
• Financial and operational performance and
sustainability of the business
• Corporate activities, including the sale of the
CC&V mine, and a tender offer for bonds,
among other matters
• Labour relations
• Safety performance
• Employee well-being
• Regulatory concerns
• Shareholder returns
• Provision for rehabilitation
34
ENGAGING WITH MEDIA
We engage regularly with media
on ad hoc matters, and at least
quarterly on financial and operating
results. This we do in a transparent
manner with local and international
media. Engagement with the media
facilitates accurate reporting on
and understanding of our company.
Media engagement can enhance the
company’s reputation and can be
used to supplement communication
with other stakeholders.
Main focus areas of
engagement:
• Financial and operational
performance and sustainability of the
business
• Labour relations
• Safety performance
• Executive remuneration
• Regulatory concerns
• Gold market
• Socio-political and economic
development
• Geo-political issues
• Occupational health
INTEGRATED REPORT 2015 PEOPLE ARE OUR BUSINESS
At AngloGold Ashanti we
understand the value of our
people in driving and achieving
business success. This is
reflected in our business
strategy – people, safety and
sustainability, is one of our five
strategic focus areas.
We have made it our goal to enhance the
performance of our human capital, despite
intense market competition for skills. This
we do by developing and engaging more
meaningfully with employees.
With this in mind, a strategic review was
undertaken by our people and organisational
development discipline with the aim of
refocusing our approach to employee
engagement, in alignment with our
operational efforts.
For more detail on our revised human
resources (people and organisational
development) strategy and how it translates
into a set of actions in AngloGold Ashanti’s
strategic work plan, see .
EMPLOYMENT
In 2015, AngloGold Ashanti employed
on average 52,266 people (38,749
permanent employees and 13,517
contractors) (2014: 58,057 people –
43,073 permanent employees and 14,984
contractors), more than 14,000 fewer
than in 2013.
The sustained focus on core business
and costs as well as the optimising and
restructuring of operations continued
in 2015. In line with Project 500,
revised labour plans and productivity
improvement initiatives are being
implemented across the group.
The focus of these in 2015 was on the
Continental Africa region where employee
numbers declined by 26% on the year
and productivity increased by 44% to
20.61oz/TEC (total employee costed)
from 14.36oz/TEC in 2014. Most of this
reduction in the region’s workforce was a
result of retrenchments at Obuasi in 2014.
Employee wages and benefits make up a
significant component of our cost base,
35% of costs of sales in 2015 (2014:
39%). Payment of wages and benefits
to employees totalled $1,146m in 2015
(2014: $1,538m).
35
INTEGRATED REPORT 2015 PEOPLE ARE OUR BUSINESS continued
OUR APPROACH
We evaluate our human capital
performance in terms of four key
areas, namely:
• building managerial effectiveness
• talent management and skills
development
• engaging employees and
building trust
• transformation and diversification
Other aspects affecting our human
capital are health, safety, employee
benefits and human rights.
BUILDING MANAGERIAL
EFFECTIVENESS
Credible leadership is vital for effective
management and organisational change.
During 2015, our human resources
function undertook a series of leadership
conversations, which focused on
understanding the leadership imperatives
facing the business; defining management
and executive accountability; and articulating
the attributes of and requirements for good
leaders. The aims of this process were to
establish a common view of challenges and
secure a commitment to effective leadership.
During the year, the System for People – our
people management system – was revitalised
and renamed How We Work. The revised
approach provides a set of practical methods
to help managers and supervisors to empower
and effectively manage employees – mainly
through one-on-one and team conversations,
for which openness and the freedom to
exchange ideas are crucial.
Global performance management
Roll out of the global performance
management system continued at corporate
and regional levels. Role descriptions, task
assignments and development plans were
clearly established for all employees. Online
performance reviews are conducted twice
during the year to enable a more focused
approach to individual development plans,
and the implementation of learning and
development activities to address specific
developmental needs. Other benefits of
this online review system include enhanced
strategic alignment, reduced role ambiguity,
increased communication and engagement,
and improved performance and results as well
as better staff retention.
In 2015, human resources contributed
significantly to Project 500, a formal cost-
cutting programme begun in 2013, and to
‘having the right people doing the right work’.
The focus was on optimising labour by defining
the appropriate structures, competencies and
skills mix required for the different disciplines.
For more information, see .
Impact of operational
restructuring
In the Americas region, CC&V in the United
States was sold to Newmont, effective
3 August 2015. Most of the CC&V workforce
was successfully transferred to Newmont. Six
Denver-based support staff were retrenched.
In the Continental Africa region, full labour
reviews were conducted at Siguiri and Geita to
establish the unique labour baseline for each
mine. Various findings were made relating
to structural effectiveness, reporting lines,
staffing levels, the localisation of roles, multi-
skilling opportunities, training requirements
and the insourcing of contracted work. These
findings served as the basis for Geita’s 2016
labour plan and took into account the mine’s
expected labour needs for the next three to
five years.
Given the sensitive nature of labour relations
at Siguiri where a new union committee was
appointed, implementation of a revised labour
plan has been deferred to 2016 and 2017.
Following the national elections in Guinea in
2015, there have been personnel changes
among regulatory and government stakeholders.
At Obuasi, which remains on limited operations,
following a further review of related requirements,
fewer employees will be retained for ongoing
critical and outstanding work in 2016.
36
INTEGRATED REPORT 2015 PEOPLE ARE OUR BUSINESS continued
SAFETY AND HEALTH OF
OUR PEOPLE
Safety
Given that our people are our business,
their safety is paramount. Safety, our first
value, is a priority at all operations and a
key driver in ensuring focus on our people
who are exposed to the hazards and risks
associated with mining activities. We are
unrelenting in our vigilance, analysis of safety
risks and incidents, and in the pursuit of
innovative, effective controls to improve our
safety performance.
Our goal remains to eliminate fatalities and
injuries in the workplace. One life lost is
one too many, and we are committed to
achieving zero harm at our operations.
We recognise that procedures alone
cannot create a safe work environment.
Our approach includes a hazard and
risk management system that combines
structured work processes focused on
building and constantly reinforcing a strong
safety culture throughout our company.
While safety challenges remain complex,
our ability to identify and understand risks
and how they materialise has improved
significantly over time through persistent
research and analysis. This is reflected in
the improving safety performance of most
of our operations.
Our safety performance in 2015 saw an
all injury frequency rate (AIFR) of 7.18
recorded for the group (2014: 7.36).
The Continental Africa and South Africa
regions achieved their best AIFR and LTIFR
performances. Eleven people tragically
lost their lives at our operations during the
year. For details on our safety performance,
fatalities and additional safety-related
information, see the Chief Executive
Officer’s Review1 in the and Employee
Safety in the .
All our operations are OHSAS 18001 certified. Furthermore, as a member of the International Council
on Mining and Metals (ICMM), AngloGold Ashanti subscribes to all relevant international mining
industry standards. AngloGold Ashanti introduced the Zero Harm Awards to encourage and recognise
innovation in safety. This year’s winner of our Global Safety award was Iduapriem in Ghana.
37
1 Chief Executive Officer’s Review
Health
Allied to our commitment to ensuring the safety
of our employees is our commitment to ensuring
their health and well-being, which are critical
to our business success. We actively work to
mitigate health risks in the workplace and non-
work related health issues.
Our primary aim is a workplace free of
occupational diseases. While a population’s
general health is complex and influenced by
factors beyond the company’s control, we aim
for employees to be healthy. To this end, we
address the potential impacts of occupational
disease, while working to prevent and manage
non-occupational illnesses.
but more remains to be done. In 2015, the
number of new cases of silicosis in South
Africa was 140 (2014: 201). At group level,
the total number of new cases of NIHL
declined to 68 (2014: 183).
In 2015, the mining industry working group
established in 2014 to address issues relating
to compensation and medical care for
occupational lung disease in South Africa’s
gold mining industry announced the launch
of a partnership, Project Ku-Riha, with the
Department of Health. The aim of this project
is to address the backlog of compensation
claims for OLD and to ensure that new valid
claims are paid in a timely manner.
We actively manage the risk of exposure to
health hazards in the workplace. The most
significant occupational health risks in our
industry are occupational lung diseases
(OLD) in the South Africa region and noise-
induced hearing loss (NIHL).
Community health challenges include HIV/
AIDS in South Africa and malaria in much of
the Continental Africa region. Our approach
to HIV/AIDS includes voluntary counselling
and testing, the provision of anti-retrovirals
and wellness and educational programmes.
We provide employees with protective
devices and clothing, and instill responsibility
for their use with continuous training and
messaging in and beyond the workplace.
Incidences of these diseases are falling,
Malaria is best prevented by ensuring
that disease vectors are interrupted by
providing indoor residual spraying, both
at our operations and in communities. In
addition, systems are established to reinforce
INTEGRATED REPORT 2015 PEOPLE ARE OUR BUSINESS continued
community education and engagement as well
as prompt detection and treatment. In this we
support and co-operate fully with local health
authorities. In all, there were 2,244 new cases
of malaria in the Continental Africa region in
2015 (2014:1,934), 70% of which were in
Guinea.
For more information, see the section ‘Current
and legacy employee and community health
issues’ in the .
“ We actively work to
mitigate health risks in
the workplace.”
All occupational disease
frequency rate (group)
(per million hours worked)
13
14
15
7.68
7.23
6.59
UPDATE ON LITIGATION
Class actions
On 21 August 2013, an application was
served on AngloGold Ashanti, along with
other South African mining companies,
for the consolidation of the previous class
actions brought by attorneys Richard Spoor
and Charles Abrahams. The applicants
requested certification of two classes,
a silicosis class and a tuberculosis (TB)
class. The silicosis class would consist of
certain current and former underground
mineworkers who have contracted silicosis
and the dependants of certain deceased
mineworkers who have died of silicosis
(whether or not accompanied by any other
disease). The TB class would consist of
certain current and former mineworkers
who have or had contracted pulmonary TB
and the dependants of certain deceased
mineworkers who died of pulmonary TB (but
excluding silico-TB).We await judgement
on the application to certify the class action
which was heard from 12 to 16 October
2015. See also the .
Between October 2012 and April 2014,
AngloGold Ashanti received 1,256 individual
summonses and particulars of claims
relating to silicosis and/or other OLD. All
of these claims were filed in the South
Gauteng High Court, Johannesburg, and
were subsequently referred to arbitration on
9 October 2014.
On 4 March 2016, AngloGold Ashanti and
Anglo American South Africa (AASA) entered
into a settlement agreement with claimants’
counsel for the full and final settlement
with no admission of liability of all individual
claims brought against the companies.
An independent trust has been set up to
administer the allocation of the settlement
amount on the basis of claimants’
employment and medical histories.
AngloGold Ashanti and AASA will contribute
in stages toward a total amount of up to
R464 million (approximately $30 million as at
31 December 2015), which will be placed in
the independent trust.
The settlement agreement relates solely to
the individual claims and does not cover
the class actions mentioned above. See the
announcement on www.anglogoldashanti.com.
Malaria lost-time frequency rate
(2015)
55
Ghana
28
Mali
Guinea
Tanzania
16
204
New cases of occupational TB
(South Africa only)
(number of cases)
541
446
447
385
315
11
12
13
14
15
38
New cases of silicosis (South Africa only)
(number of cases)
11
12
13
14
15
252
293
168
201
140
INTEGRATED REPORT 2015 PEOPLE ARE OUR BUSINESS continued
TALENT MANAGEMENT AND
SKILLS DEVELOPMENT
Talent management and skills development
are key aspects of our strategy, and focus on
identifying and developing talent internally in
order to remain competitive and productive,
while positioning the company for a future
recovery in market conditions. We have
maintained and strengthened our talent pool.
We have reviewed our succession plans and
development initiatives and this has resulted
in an improved succession cover ratio. The
CEO talent pool has been well managed, with
specific interventions having been identified
for senior vice president and general manager
roles. Examples of such interventions include
the management development and leadership
courses identified for specific individuals in
the talent pool and which focus on specific
developmental areas.
Talent management activities are closely linked
to succession planning. At corporate level,
succession plans have been developed for
senior managers, along with development plans
for potential successors. This has improved our
succession cover ratio from 0.32 to 0.45.
For the longer term, we have designed and
conducted a leadership initiative for young
leaders to build the talent pool for future
general managers. This programme began
in 2015 and, given the considerable success
achieved, has been repeated in 2016 to further
grow and develop young talent internally.
of expatriates employed in the areas in which
we operate. Since the launch, the total number
of expatriates employed has declined by 37%,
from 300 to 190.
Talent management is driven by our skills
development committees, which include
senior human resources managers, senior
management of the relevant business units
and organised labour. We also maintain
relationships with universities and professional
bodies to ensure training and development is
delivered to professional standards.
Our talent management philosophy starts at
the lowest level upwards, and includes basic
education for unskilled workers as well as
technical, supervisory and managerial training
for higher organisational levels. Employee
development work also focuses on enhancing
skills at various levels, on topics such as
improved financial management and well-
being, and indebtedness. For more information
on work done in this regard see the .
Globally, in remote areas or where there has
previously been a high demand for skills that
were not available locally, AngloGold Ashanti
has deployed globally mobile employees
(expatriates) to fill roles on a short- to
medium-term basis. An employee localisation
programme was launched in 2013 and a
concerted effort made to reduce the number
In line with this, an annual talent review
process is underway, which provides the
opportunity to formally consider all staff at
mine level for talent management purposes,
including staff in scarce and critical skills roles.
This process identified a number of local
successors for expatriate roles. Currently 134
successors have been identified for the 190
expatriate roles in the Continental Africa region.
As at 31 December 2015, there were only two
expatriates in the Americas region and the
intention is to keep the number consistently
low. Only one expatriate is expected to be
employed in this region in 2016.
A Localisation Report and Plan, which
provides information on talent and local
successors, is submitted annually to the
Social, Ethics and Sustainability Committee.
Chairman’s Young Leaders
Programme
In 2015, we launched the Chairman’s Young
Leaders Programme. This flagship annual
programme operates under the auspices of
our Chairman, Sipho Pityana. It is aimed at
developing the company’s future leaders from
early on within the AngloGold Ashanti group.
The programme selects young leaders from
our global operations, and seconds them for a
year to work in different areas and operations,
alongside company experts. As part of this
broad company exposure, participants work
on finding solutions for specific business
challenges. For more information on this
programme, see the .
ENGAGING EMPLOYEES AND
BUILDING TRUST
Employee engagement survey
In 2015, we took clear action in response to
our 2014 employee engagement survey, which
featured, among others, questions specific to
AngloGold Ashanti’s values, ethics and safety.
Employee responses identified three areas
requiring further attention: senior leadership
practices, ethics and managerial effectiveness.
A range of interventions was implemented at
regional and country level to address not only
employee issues but also to amplify employee
voices within safe spaces, and to give
assurance that issues raised are considered
and addressed appropriately.
The survey will be undertaken again in the first
half of 2017, and will be repeated every two
years thereafter, to assess progress made
since the baseline 2014 survey. For more
information see the .
39
INTEGRATED REPORT 2015 PEOPLE ARE OUR BUSINESS continued
1 South Africa regional review
Collective bargaining
At AngloGold Ashanti, employees have the right
to collective bargaining, which we recognise
and apply according to the applicable laws and
regulations in each of the countries in which
we operate. Only our Australasian operations
do not have collective bargaining as this is not
recognised in Australia.
At all other operations, the right to collective
bargaining is key to effective labour relations
across operations. Accordingly, our
employees have union representation and all
recognised trade unions are provided with
adequate platforms to freely exercise their
fundamental labour rights in a responsible
and constructive manner.
In the Continental Africa region, positive
working relations between management
and organised labour continued. To facilitate
constructive engagement and equip union
representatives with the skills required for
collective bargaining and wage negotiations,
all parties participated in capacity-building
training workshops prior to the start of
negotiations. Annual wage negotiations and
review of applicable collective bargaining
agreements began with our respective
representative unions in the third quarter
of 2015.
At Geita in Tanzania, Siguiri in Guinea, and at
our South Africa and Malian operations, annual
wage negotiations were successfully concluded
with final wage agreements being signed with
the respective unions. In Mali, these negotiations
also involved a review of the existing collective
bargaining agreement, which is still underway.
In Ghana, bilateral wage negotiations with the
Ghana Mineworkers Union began at Iduapriem
in October 2015. These negotiations continue.
At Obuasi, in terms of the agreement
negotiated, there were no wage negotiations
with organised labour for 2015 as the mine is
on limited operations.
In the Americas region, annual wage
negotiations in both Brazil and Argentina
were successfully concluded and agreements
signed in the latter part of 2015.
In the South Africa region, 93% of our
workforce is represented by four unions whose
representation at our South African operations
is as follows: NUM (51%), AMCU (33%),
Solidarity (2%) and UASA (7%).
Ahead of the 2015 wage negotiations,
numerous sessions were held with unions to
present company-specific economic models
to motivate the affordability of possible
wage increases. For the first time, senior
financial and investor relations staff from the
gold producing companies were extensively
involved in presenting their companies’
financial positions to the unions. All statutory
and ad hoc committees pertaining to labour
relations, organisational restructuring and
people issues met and were attended by both
company and representatives from all four
unions – AMCU, NUM, Solidarity and UASA.
Every effort was made to ensure that all parties
participating in the negotiations understood the
likely impact and economic consequences of
unaffordable wage increases on employment
and the sustainability of the industry1.
Notwithstanding the challenging wage
negotiations process in 2015, negotiators
succeeded in focusing on the key issues:
(i) an economic component relating to gold
price, rand/dollar exchange rate, costs, safety
and productivity, and (ii) a social component
detailing job retention, guaranteed pay and
benefits, housing and accommodation,
retirement savings, health and wellness, and
education and skills development.
The negotiations were successfully concluded
and a three-year wage agreement signed with
NUM, Solidarity and UASA. Regrettably, AMCU
did not sign the wage agreement. However, as
the unions that did sign the deal represented
the majority of employees, in terms of the
Labour Relations Act, the wage agreement was
extended to all employees, irrespective of union
affiliation. It was a significant achievement on
the part of both the unions and the companies
involved that the wage negotiations were
concluded without any strike action.
TRANSFORMATION AND
DIVERSITY
AngloGold Ashanti’s operations and
exploration activities span 10 countries
on three continents. Our transformation
philosophy seeks to harness the strategic
and operational power inherent in a
diversity of cultures, languages, beliefs,
ages, genders and expectations. By
embracing diversity, we are able to draw
on a broad range of unique experiences
and perspectives, which enable and inspire
progressive thinking and innovation.
AngloGold Ashanti’s Global Transformation
Policy and Framework governs the company’s
approach to diversity, localisation and gender
equality. It is supported by the Code of
Business Principles and Ethics and the board
charter, which define our approach to talent
management and skills development.
In South Africa, all Mining Charter
transformation targets relating to the
appointment of historically disadvantaged
South Africans have been met at all
organisational levels.
Mining Charter Scorecard
40
INTEGRATED REPORT 2015 PEOPLE ARE OUR BUSINESS continued
1 Remuneration report
Localisation and the skills development
of nationals has been a particular focus
at our operations in the Continental Africa
region. Our approach includes a progressive
reduction in the company’s dependence
on skilled expatriates. Our focus is on
localisation at all levels, from the transfer of
technical skills to leadership and managerial
roles. Progress highlights include the first
appointment of a Guinean national as General
Manager at Siguiri.
Gender equality is another key component of
transformation within AngloGold Ashanti and
a Gender Equity Policy was approved by the
board during the year. We remain committed
to increasing female representation at all
levels within the company. The company
voluntarily committed to and achieved 30%
female representation on the board and the
Executive Committee. This is in line with
our affiliation with the 30% Club, a global
network of chairmen, CEOs and senior
executives who have voluntarily committed
to having more female representation on
company boards.
In addition, we support the JSE and UN Global
Compact Network South Africa’s initiative
to raise the profile of gender equality and to
promote sustainable development. For more
information about transformation and diversity
in AngloGold Ashanti, see the .
EMPLOYEE BENEFITS
We aim to remunerate our employees and
provide benefits to that drive and reward
behaviour and performance, aligned with
delivery on the company’s strategy to ensure
sustainable cash flow improvements and
enhance shareholder returns. For detailed
information, see the Remuneration Report 1.
HUMAN RIGHTS
At AngloGold Ashanti, we strive to nurture
positive human relationships. Respecting
human rights means we endeavour, in every
way, to conduct our business and mining
activities without causing harm to other people
through our mining activities or through our
relationships with others.
Business activities often have human
rights implications – positive and negative
– for communities, employees, suppliers,
contractors and wider society. If managed
responsibly, respect for human rights can help
to build enduring relationships based on trust,
which in turn reinforces our commitment to
maintaining our social licence to operate.
Conversely, failure to effectively manage
human rights issues may have significant
financial, legal and reputational implications,
including operational delays, legal disputes,
negative investor confidence, employee
dissatisfaction and reputational harm.
AngloGold Ashanti is a signatory to the
Voluntary Principles on Security and
Human Rights and the company’s Human
Rights Policy is informed by the United
Nations Guiding Principles on Business and
Human Rights. In support of our policy, we
developed a series of standards including
the human rights due diligence standard,
a standard for vulnerable persons as well
as a standard for indigenous people. The
due diligence standard specifically identifies
current and future human rights risks,
allowing us to address these as they arise.
A due diligence assessment pilot project at
Geita was concluded in January 2016 and
its findings will be assessed in line with our
human rights policy.
These human rights standards are available
in all the official languages of AngloGold
Ashanti’s operations. These have been
approved by the Executive Committee and
are expected to be implemented in 2016.
Human rights training
Our human rights ambassador training, which began at Geita in Tanzania two years ago,
involves appointing and training human rights ambassadors at each of our operational sites.
These ambassadors, in turn, implement localised training material.
To date, all employees at Geita have completed human rights training and training is being
developed currently for our operations and teams in Brazil and Colombia. In addition, 70%
of senior management completed online human rights training in 2015. Human rights
ambassador training is to be fast tracked at all operating sites in 2016.
41
INTEGRATED REPORT 2015 STRATEGY
STRATEGY
SUPPORTING OUR STRATEGY
through credible and sustainable business
We review our delivery in terms of
our strategic objectives.
42
INTEGRATED REPORT 2015 OUR STRATEGY
AngloGold Ashanti’s core strategic
focus is to generate sustainable
free cash flow improvements
and returns by focusing on
five key business objectives,
namely: people, safety and
sustainability; ensuring financial
flexibility; actively managing
all expenditures; improving
the quality of our portfolio; and
maintaining long-term optionality.
E S
OUR C O R
O pti m is e o v erh e a d, c o sts a n d
c a pital e x p e n diture
T R A TEGIC FOCU
Im
pro
v
e p
S A
ortfolio q
R
E
A
S
u
ality
Supporting
our strategy for
sustainable
cash flow
improvements
and returns
E
n
s
u
r
e
f
i
n
a
n
c
i
a
l
f
l
e
x
i
b
i
l
i
t
y
Focus on people, safety and sustainability
n
ality
ptio
m o
-te
g
n
r
aintain lo
M
ANGLOGOLD ASHANTI’S
INVESTMENT CASE:
1.
4.
HIGH-QUALITY portfolio of long-
life, pure gold assets with strong
leverage to energy and currencies
Decisive STRATEGIC
RESPONSE to a lower
gold price
2.
5.
Transparent, decisive management
team, FOCUSED ON DELIVERY
and shareholder value
BALANCE SHEET FLEXIBILITY;
appropriate liquidity, covenant
and maturities
3.
6.
PRIORITISING MARGINS over
volumes – focus on cost and
capital discipline
WELL-DEVELOPED
ENGAGEMENT model ensures
strong stakeholder relationships
and licence to operate
43
We believe that these building
blocks will help ensure long-term
value creation for shareholders,
employees and other stakeholders
in the business.
People are the foundation of our business.
Our business must operate according to our values if
it is to remain sustainable in the long term.
We must ensure our balance sheet always remains
able to meet our core funding needs.
All spending decisions must be thoroughly scrutinised
to ensure they are optimally structured and necessary
to fulfil our core business objective.
We have a portfolio of assets that must be
actively managed to improve the overall mix of
our production base as we strive for a competitive
valuation as a business.
While we are focused on ensuring the most efficient
day-to-day operation of our business, we must keep
an eye on creating a competitive pipeline of long-
term opportunities.
INTEGRATED REPORT 2015
PERFORMANCE AGAINST STRATEGIC OBJECTIVES
1: FOCUS ON
PEOPLE, SAFETY,
AND SUSTAINABILITY
The people we focus on include
employees, host communities and
all other stakeholders. Internally,
we ensure that the right people are
in the right roles, working together
to address the company’s key
strategic objectives.
Being fully cognisant of the importance of
human capital – our people – in achieving
business success, we undertook a strategic
review, refocusing our approach and aligning
our efforts across the company to ensure that
our people are well placed to help achieve our
business objectives 1.
Our aim – to drive sustainable cash flow
improvements through our operations –
depends on our ability to operate safely,
with the co-operation and consent of our
host communities and governments, and to
remain careful stewards of the environment,
notwithstanding the invasive nature of mining.
Furthermore, achieving our business objectives
enables us to contribute to local socio-
economic development, which is continuously
affected by the market conditions 2.
While we continue to make progress in this
core strategic objective, we remain vigilant
in our safety practices, continuously seeking
to achieve our ultimate goal of zero harm
– to eliminate fatalities and injuries in the
workplace – and minimising our impact on
the environment.
1 People are our business
2 Material concerns and our
external environment
44
Number of fatalities
Number of environmental incidents
11
12
13
14
15
15
18
8
6
11
27
16
10
11
12
13
14
15
5
4
Productivity (continuing operations)
(oz/TEC)
11
12
13
14
15
8.86
7.66
7.77
9.30
8.87
All injury frequency rate for 2015
7.18
per million hours worked
(2014: 7.36)
Number of employees
Community investment
($000)
11
12
13
14
15
61,242
65,822
66,434
58,057
52,266
11
12
13
14
15
20,612
24,907
22,536
14,799
15,229
INTEGRATED REPORT 2015 PERFORMANCE AGAINST STRATEGIC OBJECTIVES continued
2: ENSURE
FINANCIAL
FLEXIBILITY
During the year, a range of self-
help measures were implemented
to reduce debt and improve
financial flexibility.
Delivering on our self-help measures in 2015
included continued proactive balance sheet
management; sale of a core asset to reduce
indebtedness; successfully completing the
tender offer for a portion of the high-yield bonds
and reduced interest expense; and significantly
reducing operating and overhead costs to
improve free cash flow.
These actions were in keeping with
management’s decisive action to implement
‘self-help’ measures in a volatile, low gold price
environment. Proactively reducing debt levels
and improving overall balance sheet flexibility
remain important objectives, particularly in the
short to medium term.
Adjusted EBITDA
($m)
11
12
13
14
15
3,082
2,486
1,525
1,616
1,472
Net debt to adjusted EBITDA
(times)
0.20
0.83
11
12
13
14
15
2.04
1.94
1.49
610
Net debt
($m)
11
12
13
14
15
2,061
2,190
3,105
3,133
$2.19bn
Net debt for 2015
3: OPTIMISE OVERHEAD
COSTS AND CAPITAL
EXPENDITURE
Corporate and overhead costs
($/oz)
11
12
13
14
15
22
20
68
78
52
Total cash costs (continuing operations)
($/oz)
11
12
13
14
15
712
842
836
785
712
Capital expenditure*
($bn)
11
12
13
14
15
1.69
2.32
1.99
1.21
0.86
*
Includes equity-accounted investments
Focus was maintained on
optimising corporate costs,
which have been reduced
by more than 60% since
2013. Capital expenditure in
2015 was 57% lower and
exploration expenses were
47% lower than in 2013.
We have intensified our focus on value-
creation opportunities deliverable from
current structures by prioritising the
delivery of sustainable high-margin
ounces and improved efficiencies.
Plans continue to aggressively identify and
implement further operational efficiencies,
reduce overhead cost structures and
pursue other initiatives to improve cash
flows and help weather the weak gold
price environment.
45
INTEGRATED REPORT 2015 PERFORMANCE AGAINST STRATEGIC OBJECTIVES continued
4: IMPROVE THE QUALITY
OF THE PORTFOLIO
5: MAINTAIN LONG-
TERM OPTIONALITY
In line with our aim to simplify our portfolio
and focus on high-quality ounces, we have
successfully brought on-line two new
operations in the past three years, placed
our loss-making Obuasi mine in limited
operations mode, commenced closure at
Yatela and consolidated Great Noligwa
into the neighbouring Moab Khotsong
infrastructure.
In September, a concerted effort was made to unlock a
new opportunity for Obuasi through a joint venture with
Randgold Resources. This was subsequently terminated
in December. Following Randgold Resources’ decision
not to proceed with the proposed joint venture, we
developed a plan to finalise the feasibility study and
to continue with limited operations at reduced spend.
We will resume our search for a joint venture partner
at Obuasi. Once all permits are received, a satisfactory
feasibility study completed and an investment
agreement concluded, the search for a partner(s) in
Colombia will resume when market conditions improve.
We continue to advance the Mponeng Below 120 level
project in the South Africa region.
We remain committed to
developing the long-term
prospects of the business.
was the achievement of reef-boring cycle
times of
82 hours/hole, which is trending close to our
targeted 72 hours/hole.
The current exploration focus is
on those areas with the greatest
exploration potential. These include
Australia and Guinea, in the medium
term, and Colombia in the long term.
In addition, our brownfields projects
include underground development
work at Geita in Tanzania, the
underground expansion at Cerro
Vanguardia in Argentina and accessing
the high-grade ore at Serra Grande in
Brazil, while at Sadiola in Mali we are
studying a new mine plan to revive the
operation and extend its life of mine.
In South Africa, the technology and
innovation initiative continues to make
progress. Ultra-high strength backfill
was successfully pumped a distance
of more than 1,000m, a prerequisite
for a full mining cycle. Also notable
Average gold price received
($/oz)
11
12
13
14
15
1,576
1,664
1,401
1,264
1,158
Annual production (continuing and
discontinued operations)
(Moz)
11
12
13
14
15
4.3
3.9
4.1
4.4
3.9
46
Expensed exploration and evaluation costs*
($m)
11
12
13
14
15
313
292
461
156
140
*
Includes equity-accounted investments
INTEGRATED REPORT 2015 MANAGING AND MITIGATING RISKS
Our risk management process
underpins the successful
execution of our strategy
and planning for the future.
Risk, and its identification,
assessment, management and
mitigation, are fundamental to
our business.
At AngloGold Ashanti, we recognise
that risk is a factor in all business and
operational activities, and that threat
and opportunity are both facets of risk.
The overall aim of our risk management
function is to strategically manage the
threats to delivery on our strategic
objectives and to harness and capitalise
on any opportunities identified for the
benefit of all stakeholders.
Once evaluated, principal risks and
opportunities are prioritised and managed
within the group’s risk framework.
“ The overall aim of our
risk management function
is to strategically manage
the threats... and to
harness and capitalise on
any opportunities...”
OUR PRINCIPAL RISKS
AngloGold Ashanti’s top group risks are classified
as follows:
Strategic risks are those taken voluntarily
after consideration of risk-versus-reward to
achieve AngloGold Ashanti’s strategic objectives.
TOP GROUP RISKS
AngloGold Ashanti’s top risks, as at the end of 2015, are illustrated below in a ‘heat map’ that
plots the severity of the consequence of a risk against the likelihood of that risk occurring.
Operational risks are preventable risks
resulting from employees’ undesirable and
unauthorised actions as well as from breakdowns
in routine operational processes and human error.
External risks are those emanating from
uncertain and uncontrollable events.
Risk assessments are undertaken annually and the
risks discussed here were identified, reviewed and
assessed by the Executive Committee.
Full details and the status of each risk are
monitored continuously in terms of:
• context and background of risk
• risk performance indicators
• mitigation plans
• expected outcome and residual risks
• expected date for completion of mitigation
measures
• possible root causes and consequences
• mitigation and prevention controls
This information is updated and presented
quarterly to the Audit and Risk Committee.
Top group risks heat map
Y
T
I
R
E
V
E
S
Political
Obuasi
Labour
Health
Skills
Debt
Commodities and currencies
Operational and safety
Ore Reserves
Power
LIKELIHOOD
Principal risks identified
Strategic
Operational
External
47
INTEGRATED REPORT 2015
MANAGING AND MITIGATING RISKS continued
These top 10 risks are tabulated below, ranked from the highest to the lowest in order of magnitude.
Top 10 risks
Ranking
Type
Potential risk
1
2
3
4
5
External
Adverse gold and commodity prices, and currency movements
Operational
Operational and safety underperformance negatively impacting
improved track record
Strategic
Inability to develop projects to bring our Ore Reserve to account
External
Security of power supply and cost increases
External
Elevated political and country risk profiles in core production areas
6
Strategic
Failure to demonstrate and/or realise the business case for
Obuasi redevelopment or to sustainably improve the security
situation at the mine
7
8
9
Operational
Critical skills and talent retention
External
Protracted labour-related stoppages
External
Financial covenant breach and excessive debt levels
10
External
Legacy occupational and community health compensation
claims/litigation
48
INTEGRATED REPORT 2015 MANAGING AND MITIGATING RISKS continued
MITIGATION OF TOP 10 GROUP RISKS
Risk
1:
Adverse gold
and commodity prices, and
currency movements*
2:
Operational and safety
underperformance
negatively impacting
improved track record*
Potential consequences
Mitigation action plan
• Inadequate free cash flow/liquidity/credit rating impact
• Balance sheet flexibility – appropriate liquidity, covenant and maturities
• Inability to develop strategic growth and development
• Prioritising margins over production growth – focus on cost and capital discipline
projects to bring Ore Reserves to account
• Lower market capitalisation
• Project 500 to seek further cost optimisation
• Overhead structures continue to be refined
• Conservative near-term planning assumptions which will focus margins
• South Africa safety focus to help recover volume
• Intensify efforts to improve efficiencies and reduce all costs across our portfolio
• Restrict exploration and reef-boring to further focus on near- to medium-term production
• Significantly reduce Colombia portfolio holding costs
• Harvest short-life mines for cash
• Reduced cash flow and decreased liquidity
• Revise Safe Production strategy
• Decline in investor confidence
• Implementation of critical control monitoring for major hazards to reduce risk of fatalities
• Credit ratings impact
• Focus on ore development strategy which addresses logistical constraints to increase mining
• Restricted ability to invest in strategic growth and
face length
development projects
• Implementing Project 500 to reduce input costs
• Implementation of the ‘How We Work’ process to embed safety standards, the Business
Process Framework and work routines
• Mponeng action plan in place to address seismicity challenges and ventilation
• Geological drilling done to mitigate ore body uncertainties
• Surface operations revising the surface-dump retreatment operation
• Resolving the carbon in the mix to ultimately improve and increase volumes
* Imminent – elevated potential for risk to materialise over the next nine to 12 months
49
INTEGRATED REPORT 2015 MANAGING AND MITIGATING RISKS continued
Risk
3:
Inability to develop
projects to bring Ore
Reserve to account*
4:
Security of power supply
and cost increases*
5:
Elevated political and
country risk profiles in
core production areas*
6:
Failure to demonstrate
and/or realise the
business case for Obuasi
redevelopment or to
improve the security
situation at the mine*
Potential consequences
Mitigation action plan
• Ore Reserve write-down and market capitalisation decline
• Identification of suitable joint venture partnerships and alternative sources of funding
• Impairment and lower future earnings per share
• Revised tenements strategy with focused exploration funding for critical operations
• Production profile and business plan reduction
• Business planning and portfolio optimisation
• Loss of tenements
• Feasibility studies
• Premature mine closure or mothballing of operations
• Focused project management to deliver projects on budget and schedule
• Employee safety comprised in unplanned
• Emergency strategy in place to minimise production losses during stages 2 and 3 emergency
power curtailment
• Loss of production
• Increased operational cost
• Flooding and/or sterilisation
declarations by Eskom (load shedding/curtailment)
• Emergency generation systems to ensure safe evacuation of underground mines in case of
national supply grid collapse
• CEO and industry interventions
• Adverse impact of business plans
• Socio-political-economic analyses
• Adverse impact of market capitalisation
• Use of joint venture alliances with local companies
• Compromised employee safety and security
• Gradual investment while developing familiarity with the local environment
• Reduced cash flow
• Increased operational costs
• Increased tax and royalties
• Use of third-party consultants/contractors
• Local community and host government engagement
• Development of good relations with political leaders
• Engagement with non-governmental organisations
• Inability to bring the Ore Reserve to account
• Finalise Obuasi feasibility study
• Cash drain
• Transition the operation to limited operations
• Adverse socio-economic stakeholder impact and
• Reduce holding costs
reputational damage
• Negotiate with the Government of Ghana to obtain requisite approvals and consents
• Withdrawal from mine on a long-term or permanent basis
• Seek alternative development partner
• Review gold price and economic conditions at the time
• Seek government’s co-operation to re-instate and maintain security protection
* Imminent – elevated potential for risk to materialise over the next nine to 12 months
50
INTEGRATED REPORT 2015 MANAGING AND MITIGATING RISKS continued
Risk
7:
Critical skills
and talent retention*
Potential consequences
Mitigation action plan
• Employee impact and further losses
• Continue Chairman’s Young Leaders Programme to assist in the development of general
• Negative project and operational impacts
• Increased labour costs
managers and senior leadership
• Launch of the ‘How We Work’ initiative
• Development of the talent scorecard to track and define scarce and critical skills
• Global and regional plans developed to address the results of the employee engagement survey
• Rollout of the global performance management system to align roles with strategic plans
• Broadening the short- and long-term measures which drive incentives to make them financial
and non-financial
• Review of retention policies for critical skills
8:
Protracted
labour-related stoppages*
• Production stoppages and losses leading to
• Communication as per communication strategy across various platforms ongoing,
liquidity crisis
with regular updates
• Intimidation of employees and violence and
• Pre-emptive dialogue with union structures and leadership, utilising existing union employee
damaged assets
structures and consultation processes
• Compromised safety and operational conditions
• Lower market capitalisation
• Organisational restructuring
• Security strategies and operational framework in place, and strategic working relations with
security institutions and agencies (South African Police Service, National Joint Operations
Centre and public order policing units)
• Collaboration with gold sector peers to manage and contain the contagion effect of labour risks
• Legal strategies in place
• Recourse to conduct obligations as contained in recognition agreements with labour unions
• Strike management and handling protocols in place
• SASRIA insurance
• A high level policy and operational framework are in place to deal with a myriad of
eventualities emanating from labour conflict, wage negotiations and disputes which may
result in strike action
* Imminent – elevated potential for risk to materialise over the next nine to 12 months
51
INTEGRATED REPORT 2015 MANAGING AND MITIGATING RISKS continued
Risk
9:
Financial covenant breach
and excessive debt levels
Potential consequences
• Balance sheet stress
• Raised cost of capital
• Equity overhang
Mitigation action plan
• Proactive and timely approach to refinancing of facilities
• Diversified sources/ facility tenor
• Cost management to preserve cash and support credit metrics/ ratings
• Inability to develop strategic growth and
• Liquidity planning
development projects
• Impeded portfolio options
• Breach of debt covenants
• Credit rating downgrades
• Cross default
• Financial impact
• Eliminating remaining high-interest bonds
• Defend all claims on their merits (both individual and class action)
• Market capitalisation reduction
• Participate in an industry working group on OLD to address issues relating to compensation
• Reputational damage
• Impacted employee well-being
and medical care for OLD in the gold mining industry in South Africa
• Entered into a settlement agreement with claimants’ counsel for full and final settlement with no
admission of liability of all individual claims brought against both AngloGold Ashanti and Anglo
American South Africa
10:
Legacy occupational
and community health
compensation claims/
litigation
52
INTEGRATED REPORT 2015 MANAGING AND MITIGATING RISKS continued
TOP GROUP OPPORTUNITIES
We recognise that identifying and managing
opportunities is an important component of
risk management. The company identifies
suitable opportunities, endeavouring to exploit,
harness or maximise them, with the aim of
creating value from mitigating our risks. This
table lists our key opportunities along with the
strategy for each.
“ The company
identifies suitable
opportunities...
with the aim of creating
value from mitigating
our risks.”
Top group opportunities
Type
Opportunity
Strategy
Operational
Benefits from increase in gold
price enhanced by cost
reduction
• Actively improve the quality of the portfolio
• Focus on margins through initiatives to improve all-in sustaining costs and all-in costs,
including Project 500
• Improve leverage to the gold price
Pursuing key growth opportunities
for our asset portfolio
• Focused brownfield exploration activities
• Prefeasibility studies for life-of-mine extensions and improved recoveries
Technology step-change in
South Africa
• AngloGold Ashanti Technology and Innovation Consortium
• Proof of concept work relating to geological drilling, reef boring, ultra-high strength
backfill and haulage boring machines 1
• Stakeholder identification and engagement
Benefits from weaker currencies
and lower oil price
• Demonstrate leverage at operations most exposed to declining currencies
• Demonstrate leverage at operations that use most oil/diesel
Strategic
Continued debt reduction to
improve flexibility
• Bond repurchase
• Diversified sources of funding
• Reduced cost and restructured organisation
Colombia
Obuasi
• Revised tenements strategy with focused exploration funding
• Work to ensure that ‘social licence to operate’ is realised
• Partnering options
• Reduce holding costs
• Deliver feasibility study and refine to ensure optimal returns from high-margin,
mechanised operation
• Ensure buy-in for redevelopment from all stakeholders including government
• Test market for potential value-creating joint venture and find optimal funding structure
Business planning and portfolio
optimisation processes
• Sound business planning with top-down goals
• Portfolio rationalisation and optimisation
1 Refer to Planning for the future
Asset sale or joint venture for
full value
• Potential to realise full value of operating asset in cash for sale or joint venture
• Increased ability to deleverage in a value-enhancing manner
53
INTEGRATED REPORT 2015 MANAGING AND MITIGATING RISKS continued
RISKS BY STRATEGIC OBJECTIVE
Achievement of each of our strategic
objectives is subject to a set of particular
risks. Detailed below are the risks for each
of our five strategic objectives:
E S
OUR C O R
O pti m is e o v erh e a d, c o sts a n d
c a pital e x p e n diture
T R A TEGIC FOCU
Im
pro
v
e p
S A
ortfolio q
R
E
A
S
u
ality
Supporting
our strategy for
sustainable
cash flow
improvements
and returns
E
n
s
u
r
e
f
i
n
a
n
c
i
a
l
f
l
e
x
i
b
i
l
i
t
y
Focus on people, safety and sustainability
n
ality
ptio
m o
-te
g
n
r
aintain lo
M
Focus on people,
safety and
sustainability
Ensure financial
flexibility
Optimise overhead,
costs and capital
expenditure
Improve portfolio
quality
Maintain long-
term optionality
• Protracted labour-related
• Adverse gold and commodity
• Adverse gold and commodity
• Protracted labour-related
• Adverse gold and commodity
stoppages 8
• Critical skills and talent
retention 7
• Legacy occupational and
prices, and currency
movements 1
• Protracted labour-related
stoppages 8
community health compensation
claims/litigation 10
• Operational and safety
underperformance negatively
impacting improved track
record 2
• Inability to develop projects
to bring Ore Reserve to account
3
• Legacy occupational and
community health compensation
claims/litigation 10
prices, and currency
movements 1
• Inability to develop projects
to bring Ore Reserve to
account 3
• Failure to demonstrate and/
or realise the business case for
Obuasi redevelopment or to
improve the security situation at
the mine 6
• Elevated political and country
risk profiles in core production
areas 5
stoppages 8
• Failure to demonstrate and/or
realise the business case for
Obuasi redevelopment or to
improve the security situation at
the mine 6
• Security of power supply and
cost increases 4
• Operational and safety
underperformance negatively
impacting improved track
record 2
• Elevated political and country risk
profiles in core production areas 5
prices, and currency
movements 1
• Financial covenant breach and
excessive debt levels 9
• Protracted labour-related
stoppages 8
• Legacy occupational and
commodity health compensation
claims/litigation 10
• Operational and safety
underperformance negatively
impacting improved track
record 2
The figures in circles indicate ranking of the risk in our top 10 risks (see page 48).
54
INTEGRATED REPORT 2015
PERFORMANCE REVIEW
VALUE
In this section, we review our operational
performance, the status of our Mineral Resource
and Ore Reserve, and our future outlook.
TOWARDS VALUE CREATION
focus on high-quality ounces with long-term optionality
55
INTEGRATED REPORT 2015 FINANCIAL REVIEW
REVIEW OF GROUP’S
PROFITABILITY, LIQUIDITY
AND STATEMENT OF FINANCIAL
POSITION FOR 2015
The following commentary should
be read in conjunction with the
summarised financial information.
Profitability and returns
The 11% decrease in production over 2014
levels to 3.95Moz (including discontinued
operations), was due in part to lower output
from South Africa following safety related
disruptions resulting in production loss of
113,000oz; the sale of CC&V on 3 August
2015 accounting for a further decrease in
production of 94,000oz; the transition of
Obuasi to limited operations at the end of
2014, resulting in decreased production of
190,000oz; and the grade-related reduction in
contribution from Australia.
In Continental Africa, production decreased
mainly due to the transition of Obuasi to
limited operations. Production was supported
by strong performances at Geita, Kibali and
Iduapriem, which more than offset declines
in production at Siguiri and Sadiola. These
declines were mainly the result of planned
decreases in recovered grade. In addition,
Navachab was sold in June 2014, having
produced 33,000oz in that year.
In Australia, Sunrise Dam production continued
to be impacted by lower mined grades which
in turn resulted in lower head grade through
the mill. Tropicana’s production marginally
decreased as grades gradually declined in line
with the mine plan.
The Americas production (excluding the
CC&V discontinued operation) increased for
the year under review. The 13% increase in
Cerro Vanguardia’s production was the result
of planned increase in grade, resulting in the
highest annual production for this operation in
16 years. In Brazil, AGA Mineração continued
to improve its performance with increased
production from both of its complexes,
offsetting a marginal decrease in production at
Serra Grande.
Despite the 11% decrease in production over
2014 levels, all-in sustaining costs improved
11% over the same period to $910/oz.
The significant year-on-year improvement
reflects an especially strong delivery from
the international operations which saw their
all-in sustaining costs fall by 16% to $822/oz.
Geita was once again a standout performer in
Continental Africa, with all-in sustaining costs
of $717/oz. The Americas’ all-in sustaining
cost was $792/oz, benefiting from strong
fundamental performances combined with a
tailwind from weakening currencies, particularly
in Brazil. Conversely, the South African
operations struggled due to a combination
of lower grades and several safety-related
disruptions that resulted in all-in sustaining
costs increasing to $1,088/oz, 2% higher than
the previous year. The weaker performance
was only partly offset by the weaker rand.
All-in costs reduced by 10% to $1,001/oz
(2014: $1,114/oz) reflecting the impact of
cost saving initiatives; weaker currencies and
lower oil prices, partly offset by the decreasing
production volumes.
At the adjusted headline earnings level, there
was a profit of $49m, or 12 US cents per
share in 2015 compared to a loss of $1m
in 2014. Earnings in 2015 were affected by
the 8% decline in the average gold price, as
well as the 11% production decline, which
was more than adequately offset by weaker
local currencies, lower oil prices and the cost
savings initiatives described previously.
price, decreased production, and higher costs
incurred at Obuasi related to limited operations,
partly offset by lower corporate and marketing
costs, exploration and evaluation costs, lower
retrenchment costs incurred, and a decreased
interest bill due to the part settlement of the
high-yield bonds.
No dividends were declared in 2015
(2014: nil; 2013: 50 SA cents per share).
Liquidity, cash flow and
statement of financial position
Net debt levels were substantially reduced in
2015 decreasing from $3.133bn to $2.190bn
mainly as a result of the part settlement of the
high-yield bonds. Net debt: adjusted EBITDA
ratio decreased to 1.49 times, in line with the
target group level of 1.50 times. By reducing
costs, overheads and capital expenditure, the
group managed to generate free cash inflow,
on an unadjusted basis, for the first time
since 2011:
• Adjusted EBITDA: $1.472bn
(2014: $1.616bn)
During 2015, a loss attributable to equity
shareholders of $85m was recorded, compared
to a loss of $58m in 2014. The increased
loss was the direct result of the lower gold
• Cash inflow from operating activities:
$1.139bn (2014: $1.220bn)
• Free cash inflow: $141m (2014: outflow
of $112m)
56
INTEGRATED REPORT 2015 FINANCIAL REVIEW continued
The group’s principal debt facilities are:
Debt facility
Rated bonds
Amount
Maturity date
$1.75bn in aggregate
(fully drawn)
April 2020 ($700m: 5.375%)
August 2022 ($750m: 5.125%)
April 2040 ($300m: 6.5%)
Remaining high-yield bonds
$471m (fully drawn)
July 2020 (8.5%)
Revolving credit facility
A$ credit facility
$1bn (drawn $200m at
December 2015)
A$500m (earmarked for
construction of Tropicana)
($98m drawn at 31 December
2015)
July 2019
July 2019
South African floating-
rate bond
R750m (fully drawn)
December 2016
South African revolving
credit facilities
R2.9bn in aggregate
(R992m drawn)
December 2018 and
July 2019
South African on-
demand facility
R500m (undrawn)
Overnight bank lending rate
Disclosure of our taxation exposures across the group supports the transparency of our
taxation policy, where we have adopted a low risk approach.
Across the group, we have refunds due to us for input tax and fuel duties for an attributable
amount of $195m (2014: $238m), which has remained outstanding for periods longer than
those provided for in the respective statutes. Considerable effort was made to recover the
outstanding amounts, as reflected in the reduced balance.
See the tables on the following pages for summarised group financial results. More detailed
notes and analyses of the group’s income statement, statement of financial position and
statement of cash flow for 2015 are available in the .
57
INTEGRATED REPORT 2015 FINANCIAL REVIEW continued
FIVE-YEAR SUMMARIES
Summarised group financial results – income statement (1)
US dollar million
Gold income
Cost of sales
(Loss) gain on non-hedge derivatives and other commodity contracts
Gross profit
Corporate administration, marketing and other expenses
Exploration and evaluation costs
Other operating expenses
Special items
Operating profit (loss)
Dividends received
Interest received
Exchange (loss) gain
Finance costs and unwinding of obligations
Fair value adjustments on convertible bonds
Share of equity-accounted investments’ profit (loss)
Profit (loss) before taxation
Taxation
Profit (loss) after taxation from continuing operations
Discontinued operations
(Loss) profit from discontinued operations
(Loss) profit for the year
Allocated as follows:
Equity shareholders
- Continuing operations
- Discontinued operations
Non-controlling interests
- Continuing operations
2015
4,015
(3,294)
(7)
714
(78)
(132)
(96)
(71)
337
–
28
(17)
(245)
66
88
257
(211)
46
(116)
(70)
31
(116)
15
(70)
2014
4,952
(3,972)
13
993
(92)
(142)
(28)
(260)
471
–
24
(7)
(276)
(17)
(25)
170
(225)
(55)
16
(39)
(74)
16
19
(39)
2013
5,172
(3,947)
94
1,319
(201)
(250)
(19)
(2,951)
(2,102)
5
39
14
(293)
307
(162)
(2,192)
237
(1,955)
(245)
(2,200)
(1,985)
(245)
30
(2,200)
2012
5,943
(3,765)
(36)
2,142
(288)
(390)
(47)
(402)
1,015
7
43
8
(228)
245
(30)
1,060
(285)
775
140
915
757
140
18
915
2011
6,148
(3,700)
–
2,448
(277)
(279)
(31)
163
2,024
–
52
2
(194)
188
72
2,144
(822)
1,322
311
1,633
1,276
311
46
1,633
(1) Cripple Creek & Victor is disclosed as a discontinued operation. The comparative results, excluding those for balance sheet, have been restated.
58
INTEGRATED REPORT 2015 FINANCIAL REVIEW continued
Summarised group financial results – statement of financial position
US dollar million
Assets
Tangible and intangible assets
Investments
Inventories
Cash and cash equivalents
Other assets
Total assets
Equity and liabilities
Total equity
Borrowings
Provisions
Deferred taxation
Other liabilities
Total equity and liabilities
2015
2014
2013
2012
2011
5,088
1,553
1,524
468
501
9,134
2,871
3,721
567
776
9,134
5,082
1,459
1,639
648
846
8,091
1,215
1,823
892
718
6,755
877
1,408
1,112
597
9,674
12,739
10,749
3,107
3,891
5,494
3,583
579
982
1,084
1,119
5,120
2,488
977
1,148
1,016
9,674
12,739
10,749
1,199
1,115
1,459
4,219
1,557
736
484
288
7,284
2,467
2,737
954
514
612
7,284
59
INTEGRATED REPORT 2015 FINANCIAL REVIEW continued
Summarised group financial results – statement of cash flows (1)
US dollar million
Cash flows from operating activities
Cash generated from operations
Dividends received from joint ventures
Net taxation paid
Net cash inflow from operating activities from continuing operations
Net cash (outflow) inflow from discontinued operations
Net cash inflow from operating activities
Cash flows from investing activities
Capital expenditure
Net (payments) proceeds from acquisition and disposal of subsidiaries, associates and joint ventures
Net proceeds (payments) from disposal and acquisition of investments, associate loans, and
acquisition and disposal of tangible assets
Interest received
(Increase) decrease in cash restricted for use
Other
Net cash inflow (outflow) from investing activities from continuing operations
Cash outflows from discontinued operations
Net cash inflow (outflow) from investing activities
Cash flows from financing activities
Net (repayments) proceeds from borrowings
Finance costs paid
Dividends paid
Acquisition of non-controlling interest
Other
Net cash (outflow) inflow from financing activities from continuing operations
Cash outflows from discontinued operations
Net (outflow) inflow from financing activities
Net increase (decrease) in cash and cash equivalents
Translation
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (2)
2015
2014
2013
2012
2011
1,250
57
(163)
1,144
(5)
1,139
(667)
(12)
810
25
(17)
–
139
(59)
80
(867)
(251)
(5)
–
(61)
(1,184)
(2)
(1,186)
33
(17)
468
484
1,343
–
(153)
1,190
30
1,220
(849)
42
(11)
21
24
–
(773)
(170)
(943)
(144)
(246)
(17)
–
(9)
(416)
(5)
(421)
(144)
(16)
628
468
1,307
18
(164)
1,161
85
1,246
(1,431)
(466)
(8)
23
(20)
–
(1,902)
(138)
(2,040)
864
(200)
(62)
–
(36)
566
(6)
560
(234)
(30)
892
628
2,178
72
(453)
1,797
172
1,969
(1,916)
(684)
(70)
36
(3)
(50)
(2,687)
(88)
(2,775)
1,221
(145)
(236)
(215)
(28)
597
(6)
591
(215)
(5)
1,112
892
2,855
111
(379)
2,587
226
2,813
(1,500)
(117)
(62)
39
(19)
4
(1,655)
(67)
(1,722)
(155)
(142)
(169)
–
9
(457)
(6)
(463)
628
(102)
586
1,112
(1) Cripple Creek & Victor is disclosed as a discontinued operation. The comparative results, excluding those for balance sheet, have been restated.
(2) The cash and cash equivalent balance at 31 December 2013 includes a bank overdraft included in the statement of financial position as part of other liabilities of $20m.
60
INTEGRATED REPORT 2015 FINANCIAL REVIEW continued
Ratios and statistics (1)
Operating review – gold
Production from continuing operations
Production from continuing and discontinued operations
Gold sold from continuing operations
Gold sold from continuing and discontinued operations
Continuing operations
Closing price at year-end
Average gold price received
Total cash costs
All-in sustaining costs (2)
All-in costs (2)
Earnings
Adjusted gross profit
Adjusted gross margin
Adjusted EBITDA (3)
Adjusted EBITDA margin
Interest cover
Asset and debt management
Net debt to adjusted EBITDA (3)
Continuing and discontinued operations
(Loss) profit attributable to equity shareholders
(Loss) profit attributable to equity shareholders
Headline (loss) earnings
Headline (loss) earnings
Adjusted headline earnings (loss)
Adjusted headline earnings (loss)
Capital expenditure (4)
Net cash flow from operating activities
Free cash inflow (outflow)
See footnotes overleaf
Units
2015
2014
2013
2012
2011
000oz
000oz
000oz
000oz
$/oz
$/oz
$/oz
$/oz
$/oz
$m
%
$m
%
times
times
$m
US cents
$m
US cents
$m
US cents
$m
$m
$m
3,830
3,947
3,850
3,965
1,160
1,158
712
910
1,001
721
18
1,472
37
7
4,225
4,436
4,248
4,458
1,266
1,264
785
1,020
1,114
980
20
1,616
33
6
3,874
4,105
3,862
4,093
1,411
1,401
836
1,195
1,466
1,225
24
1,525
29
6
3,697
3,944
3,707
3,953
1,668
1,664
842
1,285
1,623
2,179
37
2,486
42
14
4,064
4,331
4,040
4,307
1,572
1,576
712
2,448
40
3,082
50
22
1.5
1.9
2.0
0.8
0.2
(85)
(21)
(73)
(18)
49
12
857
1,139
141
(58)
(14)
(79)
(19)
(1)
(0)
1,209
1,220
(112)
(2,230)
(568)
78
20
599
153
1,993
1,246
(1,064)
897
232
1,208
312
988
255
2,322
1,969
(666)
1,587
411
1,519
394
1,332
345
1,686
2,813
972
61
INTEGRATED REPORT 2015 FINANCIAL REVIEW continued
Ratios and statistics (1) (continued)
Asset and debt management
Equity
Net capital employed
Net debt
Net asset value – per share
Market capitalisation
Return on equity
Return on net capital employed
Net debt to equity
Other
Weighted average number of shares
Issued shares at year-end
Exchange rates
Rand/dollar average
Rand/dollar closing
Australian dollar/dollar average
Australian dollar/dollar closing
Brazilian real/dollar average
Brazilian real/dollar closing
Argentinean peso/dollar average
Argentinean peso/dollar closing
Units
2015
2014
2013
2012
2011
$m
$m
$m
US cents
$m
%
%
%
million
million
2,467
5,190
2,190
609
2,877
2
5
89
410
405
12.77
15.46
1.33
1.37
3.33
3.90
9.26
12.96
2,871
6,640
3,133
711
3,515
0
4
109
408
404
10.83
11.57
1.11
1.22
2.35
2.66
8.12
8.55
3,107
5,519
3,105
770
4,727
18
12
100
393
403
9.62
10.45
1.03
1.12
2.16
2.34
5.48
6.52
6,082
8,420
2,061
1,580
12,025
19
15
34
387
385
8.20
8.45
0.97
0.96
1.95
2.05
4.55
4.92
5,880
7,444
610
1,528
16,226
26
20
10
386
385
7.26
8.04
0.97
0.97
1.68
1.87
4.13
4.30
(1) Cripple Creek & Victor is disclosed as a discontinued operation. The comparative results, excluding those for balance sheet, have been restated.
(2) World Gold Council standard, excludes stockpiles written off. All-in sustaining costs and all-in costs $/oz are available from 2012 only.
(3) The adjusted EBITDA calculation is based on the formula included in the revolving credit agreements for compliance with the debt covenant formula.
(4) Includes equity-accounted investments.
62
INTEGRATED REPORT 2015
ECONOMIC VALUE-ADDED STATEMENT
For the year ended 31 December
US dollar millions
Economic value generated
Gold sales and by-product income (1)
Interest received
Royalties received
Profit from sale of assets
Income from investments
%
98
1
–
–
1
2015
4,280
28
4
1
64
%
99
1
–
–
–
2014
5,350
24
4
23
–
Total economic value generated
100
4,377
100
5,401
Economic value distributed
Operating costs
Employee salaries, wages and other benefits
Payments to providers of capital
– Finance costs and unwinding of obligations
– Dividends
Corporate taxation
– Current taxation (2)
Community and social investments (3)
Loss from investments
Total economic value distributed
Economic value retained (4)
Note: This economic value-added statement includes the results of Cripple Creek & Victor until the date of sale.
1,876
1,183
245
245
–
192
15
–
3,510
867
46
30
5
5
–
3
–
–
84
16
2,464
1,588
278
278
–
165
14
20
4,529
872
43
27
6
6
–
4
–
–
80
20
63
(1) Gold sales decreased by 19% year-on-year due
to an 8% lower average price received of $1,158/oz
and an 11% decrease in ounces sold.
(2) Current tax charge (credit) by country is
as follows:
US dollar millions
South Africa
Argentina
Australia
Brazil
Ghana
Guinea
United States
Tanzania
Other
2015
(13)
25
25
61
–
17
(6)
79
4
2014
31
24
–
31
2
31
(5)
65
(14)
(3) Community and social investments exclude
(4)
expenditure by equity-accounted joint ventures.
Economic value retained excludes impairments
and impairment reversals.
INTEGRATED REPORT 2015
REGIONAL REVIEWS
South Africa
AngloGold Ashanti’s four South African deep-level mines and surface
production facilities are divided into three mining districts: Vaal
River, West Wits and Surface Operations. Currently, these three areas
comprise the following operations:
Vaal River
West Wits
Surface Operations
• Surface Operations extracts gold from
marginal ore dumps and tailings storage
facilities on surface at various Vaal River
and West Wits operations. The hard
rock business processes material from
underground as well as from marginal ore
dumps. Surface Operations also includes
Mine Waste Solutions (MWS) which
operates independently and processes
slurry material reclaimed hydraulically
from the various tailings storage facilities.
Uranium is produced as a by-product, as
is backfill that is used as mining support in
underground mined out areas.
The Vaal River mining district comprises two
mines, which share a milling and treatment
circuit. The mines, which are located about
180km from Johannesburg, near the Vaal
River on the Free State-North West Province
border, are:
• Kopanang, which is bound to the south by
the Jersey Fault, has a single shaft system
to a depth of 2,600m. It exploits the Vaal
Reef almost exclusively, producing gold as
its primary output and uranium oxide as a
by-product.
• Moab Khotsong, AngloGold Ashanti’s
newest South African mine, is located in
the Free State and has three vertical shaft
systems mining to a depth of 3,100m. Given
the geological complexity of the Vaal Reef,
the mine’s principal reef, scattered mining
is employed. Great Noligwa’s operating
infrastructure and employees were fully
incorporated with those of Moab Khotsong
during 2015.
The West Wits mining district’s operations,
situated southwest of Johannesburg, on the
border between Gauteng and North West
Province, are:
• Mponeng, the world’s deepest gold mine
and our flagship South African operation,
exploits the Ventersdorp Contact Reef (VCR)
at depths of between 2,400m and 3,900m
via a twin-shaft system. Ore is treated and
smelted at the mine’s gold plant.
• TauTona’s three-shaft system exploits
both the Carbon Leader Reef (CLR) and
the VCR, with the secondary and tertiary
shafts sinking to depths of between
2,900m and 3,480m. The full integration
of Savuka into TauTona’s infrastructure
was completed with a link between the
two mines reducing dependency on a
single infrastructure system. TauTona’s
infrastructure is being used to access
the remaining Ore Reserve at Savuka.
Hoisting of Savuka ore via TauTona began
in the second quarter of 2015. To improve
efficiencies, ore mined is processed at
Mponeng’s gold plant.
64
View map
OVERVIEW
Contribution to group
production – 2015 (%)
• South Africa
• Rest of AngloGold Ashanti
26
74
Contribution to regional production
(excluding technology) – 2015 (%)
• West Wits
• Vaal River
• Surface Operations
43
37
20
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
South Africa
Key statistics
Operational performance
Tonnes treated/milled
Pay limit (1)
Recovered grade (1)
Gold production
Total cash costs
Total production costs
All-in sustaining costs (2)
Capital expenditure
Productivity
Safety
Number of fatalities
AIFR
People
Average no. of employees: total
– Permanent employees
– Contractors
Employee turnover
Training and development expenditure
See footnotes overleaf
Production
(000oz)
11
12
13
14
15
1,624
1,212
1,302
1,223
1,004
1,004,000oz
2015 production
Productivity
(oz/TEC)
11
12
13
14
15
5.85
4.19
4.47
4.40
3.74
3.74oz/TEC
2015 productivity
Units
2015
2014
2013
36.8
0.39
14.38
0.225
7.70
1,004
881
1,091
1,088
206
3.74
9
10.81
28,325
25,274
3,051
7
29
38.4
0.39
14.35
0.239
8.19
1,223
849
1,087
1,064
264
4.40
4
11.85
29,511
26,056
3,455
10
37
39.2
0.36
13.37
0.204
7.00
1,302
850
1,070
1,120
451
4.47
6
12.63
32,406
28,526
3,880
12
45
Mt
oz/t
g/t
oz/t
g/t
000oz
$/oz
$/oz
$/oz
$m
oz/TEC
per million hours worked
%
$m
65
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
South Africa
Key statistics (continued)
Environment
Total water consumption
Total water use per tonne treated
Total energy usage
Total energy usage per tonne treated
Total GHG emissions
Total GHG emissions per tonne treated
Cyanide used
No. of reportable environmental incidents
Total rehabilitation liabilities:
– restoration
– decommissioning
Community and government
Community expenditure (3)
Payments to government
– Taxation
– Withholding tax (royalties, etc.)
– Employee taxes and other contributions
– Property tax
– Other (includes skills development)
(1) Refers to underground operations only.
(2) Excludes stockpile write-offs.
(3) Includes corporate social investment expenditure.
Units
2015
2014
2013
AIFR
(per million hours worked)
25,182
27,219
27,228
0.685
11.41
0.31
2,959
0.080
9,573
1
95
18
77
6
105
4
5
89
3
4
0.708
11.31
0.29
2,981
0.078
10,100
1
84
12
72
8
144
16
18
100
5
5
0.694
11.80
0.30
3,025
0.081
9,688
3
78
10
68
8
157
12
12
122
5
6
11
12
13
14
15
15.57
13.24
12.63
11.85
10.81
10.81
2015 AIFR
Total cash costs and all-in
sustaining costs
(S/oz)
11
12
13
14
15
694
873
850
1,189
1,120
849
1,064
881
1,088
Total cash costs
All-in sustaining costs
$881/oz
2015 total cash costs
ML
kL/t
PJ
GJ/t
000t CO2e
t CO2e/t
t
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
66
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
South Africa
OPERATIONAL PERFORMANCE
Production
Production for the year ended December
2015 was lower, predominantly due to safety
related stoppages with about 113,000oz lost
as a result of these disruptions. Mponeng
and Moab Khotsong were most affected.
In addition to the operational effects of the
safety-related stoppages, Mponeng also
experienced delays to phase 1 of its Below
120 level life-extension project. Mining flexibility
was curtailed as production was undertaken
on only three levels, at 120 level and above,
toward the lateral extremities of the ore body
where travelling distances and lower grades
hampered efficiency.
A derisking plan was implemented to address
seismicity challenges and a decision was taken
during the year to withdraw from some of
those areas to improve safety, further reducing
available mining areas and leading to lower
mining extraction rates. This is expected to
be alleviated when the higher-grade areas
below 120 level – which are currently being
developed – are available for mining. The 123
level is now continuing its production ramp-up.
Elsewhere in the West Wits, TauTona mined
a smaller area with a decrease in its mine call
factor, the measure of gold produced relative to
the amount of gold contained in the area mined.
Much of the ledging had been completed by
year-end and good progress was made in
establishing raise lines underground at the
Savuka section of TauTona. This will create
ledging panels that will improve operational
efficiency and the availability of face length,
which is crucial to the life-of-mine plan.
In addition to – and in some cases as a result
of the safety stoppages – production at the
Vaal River operations was also negatively
affected by a deterioration in the mining mix as
the anticipated move into higher-grade areas
was delayed. Increased dilution resulted in a
decline in head grades.
Safety stoppages and lack of available
face length and mining flexibility, a result of
the premature halt to mining of low-grade
areas, affected production at Kopanang. In
mitigation, more concentrated efforts were
put in place, prioritising safe practices, and
plans are underway to increase available face
length and Ore Reserve development. Safety
improvements achieved in the last quarter of the
year indicated a return to operational stability.
At Surface Operations, a reduction in grades
in the marginal ore dump material negatively
impacted production. In an attempt to
mitigate this, a project was commissioned
at the end of November to screen material
ahead of the plant.
At TauTona, seismic activity and the intense
ledging programme affected production.
The Project 500 cost savings initiative is
expected to continue during 2016 in an
endeavour to further improve efficiencies. At
MWS, the flotation and uranium plants were
temporarily stopped during the latter part of
the year as these units did not operate at
expected efficiencies.
The South Africa region produced 0.9Mlb of
uranium in 2015 (2014: 1.3Mlb), as a by-
product at its Vaal River operations.
Costs
All-in sustaining costs at $1,088/oz for the
year ended December 2015 were 2% higher
compared to the previous year. The negative
cost impact was marginal, assisted in large part
by the weaker rand relative to the US dollar, as
well as a modest contribution from the early
stages of Project 500 efficiency interventions.
Performance was significantly affected by
the lower volumes mined as well as ongoing
inflationary pressures in South Africa, which is
fully exposed to above-inflation administered
price increases for critical inputs, like power and
water, while gaining little benefit from a lower
fuel price.
Project 500 cost optimisation is ongoing and is
being introduced to a range of core disciplines
in the region. Key areas of focus are labour
cost management, reef mining activities,
reduced power consumption, improved
contractor management, the implementation
of service optimisation strategies and a
robust critical review of commodity as well as
services-related contracts.
Reduced energy consumption in particular has
yielded significant savings through efficiency
improvements and a focus on compressed air
at TauTona. In addition, all hoisting now takes
place at TauTona, including that of ore mined
in the Savuka section, resulting in improved
operating efficiency.
A study is planned for 2016 to investigate ways
to further reduce the South Africa region’s all-in
sustaining cost. This study will focus on the
rationalisation of off-mine services and costs,
and is expected to include a further footprint
reduction in the Vaal River area in particular. This
work will be incorporated in the Project 500
framework and could contribute to the viability
of key growth projects.
Good progress was made with the integration
of the Vaal River operations. This entailed
consolidation of the surface infrastructure of
the neighbouring Moab Khotsong, Kopanang
and Great Noligwa mines as well as some
of their underground infrastructure. This
is expected to further reduce the surface
footprint, enable improved mining flexibility
in response to a variable gold price, allow
us to take advantage of synergies in the
management of mineral and shared services,
and improve the profitability and sustainability
of these operations. Substantial savings have
been realised to date. In 2016, the focus is
expected to be on refining and embedding
these changes to achieve further cost
efficiencies and eliminate duplication.
67
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
South Africa
Growth and improvement
Mponeng Phase 1 below 120 level was delayed,
as discussed above, with key infrastructure
to service Ore Reserve development lagging
behind schedule by more than a year at the
end of 2015. The main issues contributing to
the schedule delays included safety-related
operational disruptions and infrastructure
reliability; slower than anticipated secondary
support installation rates, which affected
construction handover dates; poor trackless
equipment availability; and logistics complexity,
which constrained the supply of material to and
removal of rock from the project area.
To address critical issues, a detailed system
capability study was undertaken to determine
ore handling and material supply capacity.
A high-level revised schedule was completed,
based on system capability. The study
prioritises capital infrastructure to support
Ore Reserve development. The preliminary
impact of this schedule indicates a delay of
approximately 15 to 18 months in the Below
120 level gold delivery profile.
Given the constraints experienced in phase 1,
the approach to phase 2 is being reviewed.
Co-extraction of the VCR from the same
shaft deepening infrastructure platform is
being considered rather than from the decline
development employed in phase 1. Phase 2
may therefore be delayed. Work on 126 level
is expected to be completed on schedule, and
consequently, there will be no gold gap as a
result of the delay.
At Moab Khotsong, project Zaaiplaats
remained on hold. Another study has been
undertaken to determine the best technical
and economically viable options for the
project and is expected to recommend
alternative investment opportunities. The
purpose of this study will be to formulate
mine designs to economically extract
Zaaiplaats and contiguous blocks from the
Moab Khotsong shaft systems and to claw
back value through potential schedule,
cost and mining-volume gains by applying
modern shaft designs and other associated
technologies. A further study is expected to
begin in 2016 to investigate the impact of
the regional cost rationalisation initiative.
SUSTAINABILITY PERFORMANCE
Safety
The South Africa region has had mixed safety
results, with the all-injury frequency rate
(AIFR) improving to 10.81 per million hours
worked in 2015, from 11.85 in 2014. The
lost-time injury frequency rate was 8.63 in
2015 against 9.29 in 2014. Both these were
all-time best annual performances.
Surface Operations was awarded the John
T Ryan Trophy 2015 as national winner of the
Surface Operation category at the MineSAFE
awards ceremony. This is the second time this
68
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
South Africa
award has been won by an AngloGold Ashanti
operation. This strengthens our work on the
‘people pillar’ of our safety strategy, which now
comprises two enablers, namely ‘knowledge
and skills’ and ‘behaviour/attitude’. While it
is recognised that we operate in a high-risk
environment, with labour-intensive operations at
depth, we will continue to strive for zero harm,
making sure every employee returns unharmed
from work every day.
Regrettably, in 2015, our safety performance
reflected a significant regression in mine
fatalities. Tragically, nine of our colleagues lost
their lives in separate accidents compared with
four in 2014.
We would like to extend our deepest
condolences to the families, friends,
communities and colleagues of Lebakeng
Nkone, Jeffrey Dogo, Tsoabiso Mokoetsi,
Tihareseole Kanyane, Thabo Pooe, Khosi
Machosi, Gabriel Mosoeunyane, Rampatsa
Moleleki and Reino Minnaar.
Three fatalities were caused by falls of
ground, two by seismic-related falls of
ground, one during rail-bound transport
operations, one during scraper-winch
cleaning operations, one as a result of carbon
monoxide inhalation due to the indoor use of
a warming brazier, and one was caused by
electrocution during the commissioning of an
electrical substation. This marked increase in
the number of lives lost in 2015 prompted a
strong response from the management and
executive team in the South Africa region,
culminating in a thorough review and revision
of the safety strategy, now referred to as the
Safe Production Strategy.
Our Safe Production Strategy aims to develop
a culture that delivers predictable control of
safe production in a highly-effective compliant
organisation. This strategy is based on four
pillars around which detailed work plans have
been developed. These pillars are: improved
knowledge and skills; working on critical
aspects of behaviour and attitude; optimising
workplans; and, most critically, removing people
from risk and improving workplace conditions.
This strategy will be underpinned by systems
for both people and work management. This
strategy has been presented to the board
Social, Ethics and Sustainability Committee
and work on its various elements has begun.
Progress will be monitored internally and
reported quarterly to the committee.
As fully detailed in the , the work we are
doing to make the workplace safe is aligned
with the critical control management guideline
issued by the International Council on Mining
and Metals in 2015, while ensuring compliance
with applicable legislation.
We recognise that systems and processes
alone cannot create a safe work environment.
By encouraging every person to be aware
of their workplace conditions and to be
accountable for their own safety and that
of others, we seek to keep safety at the
forefront of everyone’s mind and thus create
a secure workplace. Line management will
be held accountable for safety as we believe
that living these leadership behaviours is an
important driver to progress the organisation
along an improved safety journey. Our
target is to eliminate fatalities and injuries in
the workplace.
Health
Health risk management: A high-level
and preliminary risk assessment (including
contributory causes, consequences, and
critical controls) of the broad health risks
facing our people in the South Africa
region was completed. Given the long lag
periods associated with most occupational
health risks, we aim to review medical risks
annually. This data will now be loaded into
the newly-designed ‘health risk architecture’
in AuRisk. All health risks in the region have
now been placed into 10 major hazard
categories. We have also prioritised the top
12 specific injuries or illnesses that pose
the greatest health risks to employees in
the region.
69
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
South Africa
We work constantly to reduce noise exposures
at source. Our efforts include the silencing
of critical equipment, standardising hearing
protection devices (which are selected for
comfort and efficacy), as well as improving
compliance in the use of hearing protection.
Of concern is NIHL which is on the rise with
rates having almost doubled over the past
year, from 1.2 per 1,000 to 2.5 per 1,000.
The reason for this increase is not intuitive as
occupational exposure to noise appears to
be controlled.
With increasing national and regional attention
being given to tubercolosis (TB) across the
Southern African Development Community, the
South African government’s departments of
Health and Mineral Resources have launched
a major TB screening programme across the
South African mining sector. This is a multi-
stakeholder initiative with the Chamber of
Mines and the country’s four largest mining
unions. AngloGold Ashanti is involved in the
design and implementation of this programme,
which also assists smaller companies in
implementing screening and testing.
Healthcare outcomes: The all-occupational
diseases frequency rate (AODFR) remained flat
at 12.11 per million hours worked.
The AODFR includes silicosis, occupational
TB, NIHL, barotrauma (pressure-related
injury to the middle ear following rapid
descent/ascent in deep-level mines) and all
heat-related illnesses. In all, 822 cases of
occupational disease were reported in the
year to December 2015 (64 cases of NIHL;
315 of occupational TB; 148 of heat illness;
155 of barotrauma; and 140 of silicosis).
New TB and HIV infection rates remain
at 10-year lows and good progress was
made in reducing the number of cases of
silicosis. Dust control measures continued
to be effective, and our South African
operations exceeded the Mine Health and
Safety Council milestones for dust control.
The number of silicosis cases submitted
for compensation declined for the second
successive year and early silicosis cases
remain at low levels. Stringent South African
mining industry targets for reducing silica
dust exposure by 2024 require modifications
to methods for measuring silica dust
exposures and further strengthening of
workplace controls.
The TB incidence rate declined from 1.57% in
2014 to 1.26% in 2015. This is consistent with
the downward trend of occupational TB over
the past decade. Despite significantly higher
risk in the gold sector for the development of
occupational TB (as a consequence of silica
dust exposure and HIV co-infection), the
incidence rate reported by the company is in
line with that of the general population of
South Africa.
We continue to participate in initiatives to
manage and, where possible, to deal with TB,
such as World TB Day 2015, which we hosted
at Vaal River with the Minister of Health. See
the .
Gold Working Group on silicosis:
AngloGold Ashanti is working together with
other South African mining companies on
a solution to the compensation of OLD.
Current work streams are focused on
improving efficiency at the Medical Bureau for
Occupational Disease and the Compensation
Commission for Occupational Diseases
(CCOD); cleaning of compensation data
and compilation of a credible database;
preparation for another actuarial valuation
of the Occupational Disease in Mines and
Works Act (ODMWA) fund; and exploratory
work on a potential legacy fund. The fund will
also play a part in compensation for silicosis.
In addition to the existing one-stop shops
in Mthatha and Carletonville, there are also
plans to set up two new one-stop shops for
the industry in Kuruman and Burgersfort.
Furthermore, the Gold Working Group and the
Department of Health launched Project Ku-
Riha during ‘Workers’ Month’ (May 2015) at
the one-stop shop at Carletonville Hospital. Of
the files at the CCOD that have thus far been
verified, 50% of eligible individuals have not
yet been compensated. The plan is therefore
to track and trace, and then formalise a
mechanism to compensate eligible ex-miners
over the next few years.
Total health spend: Approximately
$58m was spent on health and wellness
programmes in the South Africa region
in 2015 – $27m on clinics and hospitals
through AngloGold Ashanti Health, and a
further $31m on various medical insurance
and compensation costs for occupational
and non-occupational injuries and illnesses
affecting our employees. Over the past
decade, AngloGold Ashanti has managed
to contain the unit costs for direct health
services. However, these costs are now on
the rise. Alternative strategies and models of
health service provision are being explored.
Employee and labour relations
In 2015, employee numbers were slightly down
year-on-year, a result of the restructuring that
came with the consolidation of certain mines
in the region, and the moratorium on external
recruitment. However, there was a marginal
increase in December with the hiring of employees
with specific skills and the reinstatement of those
employees who had previously been dismissed at
Moab Khotsong – see below.
Wage negotiations took place from June
through to October 2015. All unions
participated in the central collective-
bargaining process with the Chamber of
Mines representing the gold producers.
70
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
South Africa
Notwithstanding the challenging negotiations,
a three-year wage settlement was agreed,
without any strike action or loss of production.
AngloGold Ashanti signed its agreement
with NUM, Solidarity and UASA. Regrettably,
AMCU did not sign but as the unions that
signed represented the majority of employees,
the wage agreement was extended to all
employees irrespective of union affiliation.
Employers’ wage negotiators ensured that
unions understood the possible consequences
for employment and sustainability of
unaffordably high labour-cost increases.
Building on our engagement with unions
in 2014, we continued to share detailed
information on the company’s financial position
and the industry’s precarious position.
A proposed economic and social compact
aimed at ensuring the sustainability of the
industry, preserving jobs and the sharing of
profit was also presented during negotiations.
The socio-economic compact was
based on:
• an economic model of the gold price,
the rand/dollar exchange rate, inflation,
geographic conditions, the regulatory
environment, costs, safety and productivity
• a social component detailing job
retention, guaranteed pay and
benefits, housing and accommodation,
retirement savings, health and wellness,
and education and skills development
In the latter part of the year, the Labour
Court ruled in favour of AMCU regarding
the dismissal of 542 employees at Moab
Khotsong in April 2013. AngloGold Ashanti
re-instated the relevant employees and
agreed to pay each an amount equivalent
to 12-months’ basic pay, as ordered by
the court. The company did not appeal the
judgement and a joint management-AMCU
working group was established to oversee
and manage the reinstatement process in
line with our human resources plan and
skills requirements.
Employee empowerment: Indebtedness
remains a source of profound stress for
many South African mine workers supporting
extended families. Socio-economic
pressures combined with the actions of
irresponsible lending practices by financial
institutions and micro-lenders can lead to
employees finding themselves trapped in
a debt spiral that becomes increasingly
difficult to escape. Extensive engagement
with organised labour and investigation into
indebtedness, identified illegal emolument
attachment orders (EAOs) as a significant
part of the debt problem. EAOs are court
orders which compel employers to deduct
debt repayments directly from a debtor’s
salary to pay to debt collectors.
Our Masidibanise Izandla (Managing today,
for tomorrow, together) campaign aims to
address the problem of indebtedness by
providing accessible financial management
assistance. This initiative, which began in 2014
and aims to create awareness, educate and
provide financial advice to our employees, has
achieved the following:
refer them to the appropriate advisor to
address their financial problems. The service
is free and all interactions with referral agents,
debt counsellors and legal advisors are
strictly confidential.
• Decreased the total number of EAOs,
commonly known as garnishee orders,
against our employees from 3,110 in May
2014 to 2,321 by December 2015
• 210 EAOs were terminated during 2015
• 22,948 employees have received
indebtedness training
Our long-term proactive support programme
to address employee indebtedness comprises
three elements:
• Practical training – helps employees
understand, recognise and avoid debt traps
that could be crippling. This training is also
incorporated into the induction training that
all employees undergo regularly.
• Counselling and referral – ensures that
employees have access to appropriate
assistance before EAOs are issued against
them. It includes access to debt counsellors
and debt restructuring.
• Legal assistance – helps employees challenge
the legality of the EAOs and identify illegal or
irresponsible lending practices.
By including indebtedness training during
induction, we have sought to make remedial
action for our employees’ debt problems. The
approach has worked well, with a marked
increase in calls to the toll-free call centre
immediately after induction training. In 2016
we will focus on increasing the momentum to
further reduce employee indebtedness.
In addition, a sexual awareness and
harassment campaign was implemented, in
support of gender empowerment.
Environment
Surface Operations retained its ISO 14001
certification for another year. While our focus
remains on reducing tailings pipeline spillages,
containing dust from tailings dams and ensuring
effective rehabilitation, there was one reportable
environmental incident at Vaal River when a
pipeline failure spilled tailings into a storm water
trench. Remedial action was taken to mitigate
any potential damage. The region also had few
minor and unreportable environmental incidents
in 2015, related mainly to water spills.
We also have a toll-free help line for follow-
up sessions. Employees can make an
appointment with a referral agent who will
advise them of their options and, if necessary,
West Wits, Vaal River and Surface Operations,
including MWS, are actively working to achieve
International Cyanide Management Code
certification by the end of 2017.
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INTEGRATED REPORT 2015 1 Material issues and the
external environment
REGIONAL REVIEWS continued
South Africa
Water: Pumping installations to manage
water ingress from neighbouring mines where
operations have ceased in the West Wits
and Vaal River districts, are expected to be
completed in the first half of 2016. These
systems are intended to safely intercept water
to prevent flooding as well as to re-use the
water in surface re-mining activities. Pumping
systems at both sites are able to pump water
in case of earlier-than-expected decant into
our operations.
Drought conditions across most of South
Africa and particularly in the Highveld continue
to affect the volume of water pumped in the
area close to Margaret Shaft (Vaal River) and,
over the past three dry seasons, volumes have
dropped from around 37ML/day to a current
22ML/day, just enough to supply MWS and
Vaal River plant requirements.
As standard practice, for many years our
mines have been using this scarce resource
responsibly, lessening their consumption
by reusing and recycling water1. We aim to
spend time in 2016 aligning mine closure and
regional water management plans with the
region’s expected operating life. This work will
necessitate discussions with regulators and
neighbouring mining operations.
Energy: As energy-saving projects are
completed and brought on line, our energy
consumption continues to decline. The heat-
pump project at Kopanang appears to have
reduced peak demand by up to 2.5MW and
the heat-recovery project at Mponeng is on
track and planned for commissioning during
the second quarter of 2016. This is expected
to bring in another 500kW of recovered energy
from waste heat at the compressor stations.
Overall, savings in energy consumption
were achieved.
The country’s electrical generation capacity
remains constrained as a result of poor
maintenance and late project completion
by Eskom. Electricity generation availability
remains around 70-73%. Given unplanned
outages were around 6,000-9,000MW per
day, Eskom has delayed maintenance to
counter the shortfall.
Good progress was made regarding the
amount of energy used in compressed air
control. Improvements at the West Wits
operations, a result of greater efficiencies
in compressed air controls and progress in
automation, are especially noteworthy.
Rehabilitation: As part of its ongoing
rehabilitation programme, a phytoremediation
research project has been underway for two
decades and is being implemented in the
Varkenslaagte catchment in the West Wits.
See the .
72
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
South Africa
Stakeholder engagement and
communities
In South Africa, ongoing community
engagement involves broad consultation
with a wide range of stakeholders to ensure
our community development efforts are
appropriate, relevant, targeted and effective.
This engagement takes place quarterly at
Future Forum meetings at both the West Wits
and Vaal River operations. Consultation involves
employees, community representatives,
municipalities, non-governmental organisations,
community-based organisations and various
government departments. These ongoing
consultations take various forms, which include
community forums (held quarterly), surveys,
and engagement through formal government
structures. Meetings provide an opportunity
for stakeholders’ concerns to be heard and
discussed, and for information and updates on
progress to be shared.
The consultation process highlighted the
need for development and investment
in education and health care in host
communities and labour-sending areas.
In response, our social and labour plans
(SLPs) for 2015–2019, which outline our
specific commitments to socio-economic
development, were created with a focus
on these issues. These plans – available on
our website, www.anglogoldashanti.com –
also support the goals of the South African
government’s National Development Plan.
Mandating and implementing committees
were established to give effect to the SLPs.
The mandating committee, which comprises
municipal mayors and AngloGold Ashanti
senior management, meets quarterly to
assess the progress of current projects and
to discuss issues related to broader socio-
economic development. The implementing
committee meets at least once a month
to report on project implementation
and progress.
In South Africa, we exceeded our local
procurement targets in terms of the Mining
Charter. We have worked closely with
suppliers, advising them on capacity building
and raising business standards in order to
qualify them as potential vendors.
Tender information, supply opportunities,
training and facilities such as offices,
computers and internet access are available
to aspiring suppliers. The intention is not only
to enable businesses to supply AngloGold
Ashanti, but also to provide broader access to
alternative markets and customers.
Our work in this area will be intensified with
the implementation of enterprise development
centres (EDCs) – business hubs designed to
provide information and business services.
The first EDC was launched in October
2015 in the Eastern Cape, an important
labour-sending community, as a partnership
between AngloGold Ashanti, the unions and
government. The ongoing implementation
of EDCs is underway in the Merafong and
Matlosana municipalities, where our West Wits
and Vaal River operations are located.
Community development work:
AngloGold Ashanti continued to make a
positive impact on youth development in
our host and major labour-sending areas
through our community human resources
programmes. These programmes include
bursaries, internships, learnerships, portable
skills training, various school enrichment and
school leadership development initiatives.
The Youth Technical Skills Development
Programme, a collaboration between
AngloGold Ashanti and the Department of
Higher Education, the Mining Qualifications
Authority (MQA) and the OR Tambo District
Municipality was launched in March 2015
in Mthatha. This programme, sponsored
by the MQA, covers skills such as welding,
bricklaying, plumbing and carpentry with about
750 youths as beneficiaries.
in the day’s events. This event was sponsored
by our Social and Institutional Development
Fund and corporate office’s corporate social
investment fund, which assist in addressing
critical social and institutional challenges
identified by the Sustainable Development
Goals (previously the Millennium Development
Goals) and government priorities such as
education, health and poverty alleviation in our
host and major labour-sending areas. A total of
$0.4m was contributed in 2015, bringing the
total since 2012 to $4.4m.
Challenges remain regarding access by small,
medium and micro enterprises (SMMEs) to
our procurement system, even though we
have surpassed the DMR’s target of 15%
local procurement – AngloGold Ashanti’s
procurement with local host communities was
23% at the end of September 2015. We will
endeavour to develop more SMMEs in our
local and host communities from 2016, once
the three enterprise development projects
in the Merafong, Matlosana and OR Tambo
district municipalities are fully operational.
AngloGold Ashanti, in conjunction with the
Future Forums, also successfully participated
in the annual International Nelson Mandela
Day projects and programmes in three
municipalities – Merafong, Matlosana and
OR Tambo. In addition to government and
municipal dignitaries, our CEO, the regional
COO and the chairman of the Social, Ethics
and Sustainability Committee, all participated
Other challenges relate to the high levels of
poverty and unemployment in our host and
major labour-sending areas. The especially
high rate of unemployed youths resulted in
a picket by members of the community in
Khuma at our MWS site in November 2015.
AngloGold Ashanti and the Matlosana local
municipality continue to engage jointly with
this grouping.
73
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
South Africa
Regulatory compliance
The South Africa region has complied with
the requirements of the MPRDA and has
submitted all required reports and plans to
the DMR. However, for 2015, employment
equity at senior management level for Vaal
River was 37.1% and 40.2% for West Wits,
against the Mining Charter’s target of 40%.
The rating level for the region overall was
39%. This will be remedied by the end of the
first quarter of 2016.
Gold mining companies in the Vaal River/
West Wits areas have had disputes with
the municipalities. AngloGold Ashanti,
Sibanye and Harmony were successful
in their appeal to the Valuation Appeal
Board against the Merafong Municipality’s
significantly increased property valuations.
We subsequently served the Merafong City
Local Municipality with a letter of demand
for refunds, including notice of intention
to institute legal proceedings against the
municipality to comply with its duties
and obligations in terms of the Municipal
Property Rates Act. The municipality has
taken the ruling to the High Court for review.
The Merafong municipality has indicated
that the demand for refunds for rates and
taxes will likely bankrupt the Municipality
and cause social unrest in the area. This
matter has drawn public attention and
was discussed with the Minister of Mineral
Resources in September 2015. AngloGold
Ashanti, Sibanye and Harmony are acting
jointly on this matter as all three companies
are affected parties.
In addition, the Merafong Local Municipality has
applied to the Constitutional Court to appeal the
Supreme Court of Appeal’s decision regarding
the water services’ surcharges. The application
for leave to appeal, and appeal, were heard on
18 February 2016, the decision on which is
pending. The amounts owed by the Merafong
municipality to the mines are significant –
AngloGold Ashanti alone is owed more than
R150m (approximately $11.75m at
31 December 2015).
As South Africa is a signatory to the
Nuclear Non-Proliferation Treaty and the
Comprehensive Safeguards Agreement with
the International Atomic Energy Agency
(IAEA) – the Department of Energy is ultimately
responsible for the implementation of IAEA’s
safeguards – we comply fully with the IAEA’s
safeguards regarding the sale and transport
of uranium produced. Day-to-day safeguard
activities are overseen and monitored by
the safeguards division of the South African
Nuclear Energy Corporation, NECSA.
74
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Continental Africa
AngloGold Ashanti has seven mines
in the region, six of which are
producing mines and processing
operations, and five of which
AngloGold Ashanti manages. Obuasi
mine is on limited operations, and
closure is underway at Yatela.
Democratic Republic of the Congo
• Kibali, which began commercial production
in October 2013, has achieved full
production. The mine, adjacent to the town of
Doko and 180km from Arua on the Ugandan
border, is co-owned by AngloGold Ashanti
(45%), Randgold Resources Limited (45%)
and Société Minière de Kilo-Moto (SOKIMO)
(10%), a state-owned gold mining company.
Randgold Resources operates the mine.
Kibali is expected to be one of the largest
mines of its kind in Africa.
• Obuasi is located in the Ashanti Region,
approximately 60km south of Kumasi. Mining
operations have primarily been underground,
to a depth of 1,500m. Following a two-year
review of operational efficiencies, the mine
was placed on limited operating status at the
end of 2014.
Guinea
• Siguiri is a multiple open-pit oxide gold
mine in the relatively remote district of
Siguiri, around 850km northeast of the
country’s capital, Conakry. The gold
processing plant treats about 30,000t daily.
AngloGold Ashanti holds an 85% interest in
Siguiri, with the remaining 15% held in trust
for the nation by the Government of Guinea.
Siguiri, which comprises multiple open pits
containing oxide gold, is contractor-mined
using conventional open-pit techniques. The
area has significant potential for gold mining
and has long been an area of traditional
artisanal mining.
Ghana
• Iduapriem, which comprises the Iduapriem
Mali
and Teberebie properties in a 110km2
concession, is located in the Western
Region of Ghana, some 70km north of the
coastal city of Takoradi and 10km southwest
of the Tarkwa mine. Iduapriem is an open-pit
mine and its processing facilities include
a carbon-in-pulp (CIP) plant with a gravity
circuit. The gravity feed recovers about
30% of the gold, with the remainder being
recovered by the CIP plant.
• Morila is a joint venture between AngloGold
Ashanti and Randgold Resources, which
operates the mine, and in which each has a
40% interest. The Government of Mali owns
the remaining 20%. Morila is situated 180km
southeast of Bamako, the country’s capital.
The operation ceased mining operations
in 2009 and currently treats low-grade
stockpiles and mineralised waste. The plant,
which incorporates a conventional carbon-
in-leach (CIL) process with an up-front
gravity section to extract the free gold, has
an annual throughput capacity of 4.3Mt. In
2015, the mine processed 3.1Mt of ore.
per annum CIL processing plant. While Geita
generates its own power, the operation of its
power-generating facility is outsourced and
fuel is delivered by road.
View map
• Sadiola is a joint venture between
AngloGold Ashanti (41%) and IAMGOLD
(41%). The Government of Mali owns the
remaining 18%. The Sadiola mine is situated
in south-western Mali, some 77km south-
southwest of the regional capital Kayes.
On-site surface infrastructure includes a
4.9Mt per annum CIL gold plant where the
ore is eluted and smelted. The mine, which
began operating in 1996, has multiple
open pits.
• Yatela, which began operating in 2001, is
situated in southwestern Mali, some 25km
north of Sadiola and approximately 50km
south-southwest of the regional capital
Kayes. As Yatela’s ore body has been
depleted and the pits have reached the end
of their lives, activities during 2016 will focus
on preparing the mine for closure.
Tanzania
• Geita, one of our flagship mines, is located
in northwestern Tanzania, in the Lake
Victoria goldfields of the Mwanza Region,
about 120km from Mwanza and 4km west
of the town of Geita. The Geita gold deposit,
mined solely as a multiple open-pit operation
until now, has begun to transition to
underground mining at the Star & Comet pit.
The mine is currently serviced by a 5.2Mt
75
OVERVIEW
Contribution to group
production – 2015 (%)
• Continental Africa
• Rest of AngloGold Ashanti
37
63
Contribution to regional
production – 2015 (%)
• Tanzania
• DRC
• Ghana
• Guinea
• Mali
37
20
17
18
8
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Continental Africa
Key statistics
Operational performance
Tonnes treated/milled
Pay limit
Recovered grade
Gold production (attributable)
Total cash costs
Total production costs
All-in sustaining costs (1)
Capital expenditure (2)
Productivity
Safety
Number of fatalities
AIFR
People
Average no. of employees: total
– Permanent employees
– Contractors
Employee turnover (3)
Training and development expenditure
See footnotes overleaf
Production
(000oz)
11
12
13
14
15
1,570
1,521
1,460
1,597
1,435
1,435,000oz
2015 production
Productivity
(oz/TEC)
11
12
13
14
15
11.41
10.97
9.97
14.36
20.61
20.61oz/TEC
2015 productivity
Units
2015
2014
2013
26.9
0.049
1.669
0.054
1.69
1,460
869
1,086
1,202
839
9.97
2
1.97
16,625
10,778
5,847
11
11
Mt
oz/t
g/t
oz/t
g/t
000oz
$/oz
$/oz
$/oz
$m
27.2
0.036
1.233
0.053
1.64
1,435
678
900
815
315
29.9
0.039
1.345
0.054
1.66
1,597
783
977
968
454
oz/TEC
20.61
14.36
1
0.50
11,942
5,061
6,881
16
3
0
1.56
16,070
8,739
7,331
64
2
per million hours worked
%
$m
76
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Continental Africa
Key statistics (continued)
Environment
Total water consumption
Total water use per tonne treated
Total energy usage
Total energy usage per tonne treated
Total GHG emissions
Total GHG emissions per tonne treated
Cyanide used
No. of reportable environmental incidents
Total rehabilitation liabilities:
– restoration
– decommissioning
Community and government
Community expenditure
Payments to government
– Dividends
– Taxation
– Withholding tax (royalties, etc.)
– Other indirect taxes and duties
– Employee taxes and other contributions
– Property tax
– Other (includes skills development)
(1) Excludes stockpile write-offs.
(2) Includes equity-accounted investments.
(3) The 2014 number includes the retrenchment of the entire workforce at Obuasi.
(4) Energy use restated at Sadiola.
Units
2015
2014
2013
AIFR
(per million hours worked)
16,931
0.603
8.00
0.28
663
0.024
8,405
2
425
261
164
6
291
12
97
85
24
52
1
20
17,582
21,031
0.553
(4) 9.09
(4) 0.28
(4) 795
0.025
10,549
4
463
292
171
4
306
16
79
108
27
69
1
6
0.671
12.01
0.38
969
0.030
13,720
5
411
273
138
13
320
21
72
106
46
64
5
6
3.03
2.26
1.97
1.56
11
12
13
14
15
0.50
0.50
2015 AIFR
Total cash costs and all-in
sustaining costs
(S/oz)
11
12
13
14
15
698
830
869
1,235
1,202
783
968
678
815
Total cash costs
All-in sustaining costs
$678/oz
2015 total cash costs
ML
kL/t
PJ
GJ/t
000t CO2e
t CO2e/t
t
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
77
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Continental Africa
OPERATIONAL PERFORMANCE
Production
Despite the decline in overall output for the
region in 2015, Geita, Kibali and Iduapriem
all recorded higher production. Underground
production at Kibali continued to ramp up
on schedule and Geita continued as the star
performer, helping to make up some of the
production lost by Obuasi’s limited operations
following the suspension of underground
mining operations at the end of 2014.
Increased production at Geita was driven
by an increase in recovered grade from ore
sourced from Nyankanga Cut 7. Mining
volumes were maintained despite abnormally
heavy rainfall and a decline in plant throughput
in the last quarter of the year due to planned
maintenance.
At Kibali, the ramp up of plant operations to
design capacity and increased plant availability,
resulted in a 23% increase in tonnage
throughput, and a concomitant increase
in gold produced. Production at Iduapriem
improved given the increase in the recovered
grade and the ramp up from limited mining
operations the previous year.
Production at Morila increased by 17% with
an increase in recovered grade as higher-
grade tonnes were sourced from the cutback
of the main pit that was commissioned in
the latter part of 2014. Reduced operational
flexibility and a decline in the availability
of higher-grade oxide ore contributed to
reduced production from Sadiola.
Siguiri’s production was negatively impacted
by a planned fall in recovered grade, driven
by depletion of the higher-grade ore in mined
areas owing to delayed access to the Soloni
pit. This was compounded by a decrease
in tonnage throughput following unplanned
maintenance that occurred during the year.
Production however, started improving in the
last quarter of the year as delays in accessing
mining areas were resolved and the mine
began processing ore from the Soloni pit.
Costs
Overall costs for the region improved
significantly year-on-year, declining by 13%
(total cash costs) and 16% (all-in sustaining
costs). These improvements were the result
of the cumulative benefits of operating and
cost management initiatives that have been
implemented since 2013.
Costs specifically benefitted from increased
production and improved efficiencies at the
larger operations. The Continental Africa
operations were also able to take advantage
of lower oil prices, especially the open-pit
operations which run large mining fleets and/
or generate all or part of their own power
from diesel or heavy fuel oil. Reduced capital
requirements at Kibali and Obuasi also helped
to contain costs.
In addition, the region was able to capitalise
to some extent on exposure to weaker
local currencies by in-country sourcing of
goods, services and labour and by targeting
operational efficiencies.
Growth and improvement
An extensive pipeline of project opportunities
is planned, targeted mainly at energy cost
savings and mine-life extensions. These
opportunities include:
• progressing to underground mining at
Geita’s Star & Comet ore body
• accessing additional Mineral Resources at
Iduapriem – to this end exploration work is
to be conducted within the concession and
the mine plan revised
• extending Siguiri’s life of mine as proven by
the recently completed feasibility study
Although the portion of hard sulphide ore
tonnes milled at Geita remained high during
the year, the plant nevertheless managed to
process 5.2Mt as a result of the better quality of
feed and improved fragmentation control.
Earlier planned access to Nyankanga Cut 8
and the Geita Hill East Cut 1, along with the
inclusion of ore from underground operations
at Star & Comet and Nyankanga, has led
to an upgraded production profile for 2017
– 2020. In January 2016, the first blast for
development of the Star & Comet portal for
underground operations took place.
Power supply challenges in Ghana have
affected plant operations at Iduapriem. Major
modification and repair work was completed
on the milling circuit, resulting in improved
milling rates and availability. The mine’s
strategy in the short term is to explore for
high-grade, low-strip ratio ore bodies within
the concession to further drive costs down,
and to improve efficiencies across the entire
operation while working towards cutbacks
in Blocks 7 and 8 in 2018. To improve plant
recovery, the current CIP leaching and
adsorption circuit configuration is planned
to be modified to a hybrid CIP circuit
configuration in the fourth quarter
of 2016.
In line with Obuasi’s Amendment to the
Programme of Mining Operations, at the end
of 2014, the mine successfully transitioned to
limited operations. Tailings retreatment and
maintenance activities continued and the mine
produced 53,000oz of gold.
Development of a decline from surface to
the existing underground mining blocks
progressed. This decline is expected to allow
development of the infrastructure necessary
for the mechanisation of operations and to
debottleneck the mine. By year end, the
decline had reached an overall distance of
3,000m, allowing access to Sansu 3 and
Block 8L, from where the bulk of early ore
extraction is expected to be done once
operations resume. Work continued on a
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Continental Africa
feasibility study into the redevelopment of
the mine.
AngloGold Ashanti continues to work closely
with the Government of Ghana to conclude
a suitable investment agreement for the
redevelopment of Obuasi, provided market
conditions are suitable. Once concluded, the
search for a suitable joint venture partner will
resume (see page 79 for comment on the status
of artisanal and small-scale mining at Obuasi).
In Mali, mining continued in Sadiola’s satellite
pits. These had previously been considered
uneconomical, but have now been included in
the mine plan as a result of the lower cost base.
Their inclusion has helped to extend the life of
mine of the oxide ore body until the end 2017.
The Sadiola Sulphide Project remains on hold.
At Morila, production is expected to decrease
during 2016 as the operation continues to wind
down. During 2016, the mine will continue
to process the mineralised waste stockpile.
At Yatela, closure is underway. Consultation
continues with the relevant authorities for full
approval to proceed with closure activities.
Approval is expected to be received in the
second quarter of 2016. Rehabilitation is
planned for completion early in 2019, with final
relinquishment of the mining rights expected in
2020.
Kibali contributed substantially to overall group
production and a containment of overall costs
per ounce, aided by increased output and
optimisation of the hydropower generation
system during the year. Sinking of the vertical
shaft reached shaft bottom at a depth of 751.2m
and equipping of the crusher and production
levels was completed. Construction of Ambarau,
the second hydropower station, was delayed
following the failure of the temporary berm
wall owing to high river flows. Repair work
continues and the first phase is now expected
to be completed in the second quarter of 2016,
with full completion and commissioning of the
power station scheduled for the latter part of the
year. Once operational, Ambarau is expected
to deliver 11MW. A third hydropower station,
Azambi, also expected to generate 11MW, is
planned to come on line in 2018.
At Siguiri, a range of projects is targeted at
reducing energy costs and extending mine
life. The feasibility study on the Combination
Plant Project to improve plant performance
and extend the life of mine was completed.
It is expected that this project will involve the
conversion of the Siguiri process plant into
a hard rock treatment plant, enabling the
treatment of fresh and transitional material.
The project remains conditional on securing
access to the Area 1 mining zone with the
local Kintinian community and realisation
of an acceptable amendment to the fiscal
Convention de Base, the stability agreement
with the Guinean government. Siguiri is
currently party to a mining convention, an
agreement concluded with the Guinean
government in November 1993.
On 9 September 2011, the government
adopted a new mining code which was
subsequently amended on 8 April 2013 (the
New Code). As part of the new legal regime, the
New Code provides for the audit and review of
existing mining titles and conventions and the
negotiation of related amendments. Given the
timing of the Siguiri Combination Plant Project
and that the current convention will expire in a
few years, discussions are currently underway
through a Technical Committee established by
the Guinean government.
SUSTAINABILITY PERFORMANCE
Safety
Tragically, there was one fatality in the region,
the result of a work-related incident at Obuasi.
The overall safety performance in the region
continued to improve with Iduapriem,
the winner of our 2014 and 2015 global
safety awards, continuing its sterling safety
performance and recording zero injuries
for the second year in succession. In Mali,
Sadiola also maintained its safety performance
and recorded a second year with zero lost time
injuries. The AIFR for the region improved to
0.50 per million hours worked, from 1.56 in
2014. This was a record best.
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Continental Africa
Health
The principal occupational health concern
in the region is NIHL. This has primarily
been a concern at Obuasi. Now that mining
operations have been suspended with
that mine being on limited operations, the
incidence of new cases of NIHL has dropped
dramatically with few cases diagnosed
in 2015. No new cases of silicosis were
diagnosed in the region during 2015.
Although we continued to make progress,
malaria remains endemic at all our operations
in the region. Our integrated malaria control
programmes, which include our operational
sites and local communities, continued to
make good progress. These multi-faceted
programmes, undertaken in partnership
with communities and local governments
and health authorities, have had positive
impacts for the company and surrounding
communities, and support the United Nations
Sustainable Development Goals.
Employees and labour relations
The labour relations climate remained positive
in the Continental Africa region during
2015, despite a small number of grievances
lodged by union leadership at Iduapriem in
Ghana and at Siguiri in Guinea. Stakeholder
engagement activities are ongoing at each
operation between site management and the
recognised trade unions with the support of
the Continental Africa regional office.
Challenges included union relations at
Siguiri, work stoppages at Iduapriem and
management of the change to limited
operations at Obuasi. Despite these
challenges, positive engagement and
successful wage negotiations, underpinned
by sound working relationships, have enabled
business continuity.
At Siguiri, the 2015 annual wage negotiations
were successfully concluded within the first
mandate. In Mali, annual wage negotiations
and a review of the existing collective
agreements began in 2015, and discussions
between management and two recognised
trade unions are currently underway and are
expected to be concluded in the first half of
2016. A stable and peaceful labour relations
climate was maintained throughout the year.
In Tanzania, in preparation for the 2016 annual
wage negotiations, Geita management and
union representatives underwent joint capacity
building training. Wage negotiations for 2016
were concluded successfully and ahead of
schedule. A one-year agreement was reached
with the Tanzanian Mines Energy Construction
and Allied Workers Union (TAMICO).
functions to leadership and managerial roles. In
line with our employee localisation programme,
the first Guinean national was appointed
General Manager at Siguiri. In addition, following
implementation of limited operations at Obuasi,
17 Ghanaian nationals from the Obuasi talent
pool were seconded to AngloGold Ashanti’s
international operations – in Guinea, Australia
and South Africa – for further work experience
and technical training.
Environment
There were two reportable environmental
incidents in the region, both at Obuasi and
both involving spillages of cyanide-containing
process water into trench areas. Authorities
were notified, corrective rehabilitative action
was taken and ferrous sulphate was applied
to neutralise the cyanide. Corrective remedial
actions were also taken. In addition, the region
had a few minor unreportable environmental
incidents in 2015.
The effects of reduced rainfall in several
countries in the Continental Africa region,
combined with energy supply issues across
multiple national power grids, impacted
operating costs and production reliability.
Localisation and the skills development of
nationals is a particular focus at our Continental
African operations. Our approach includes
a progressive reduction in the company’s
dependence on skilled expatriates. The aim
is localisation at all levels, from technical skills
Measures were taken to improve and
stabilise power security, including intervention
with national utilities, development of self-
generation projects and the investigation of
renewable energy sources. Solutions have
been reviewed using environmental criteria and
those appropriate to each regional location are
expected to be implemented in 2016.
In addition to the launch of the AngloGold
Ashanti’s energy management system, sites
within Continental Africa implemented a
number of energy efficiency improvements.
These included the automation of pumping
systems; updated conveyor controls;
conversion of pit dewatering from diesel to
efficient electrical power and LED lighting
retrofits. The expansion of energy metering
and monitoring systems facilitated improved
performance analytics. These systems are
expected to be expanded further in 2016.
Updates of International Cyanide
Management Code (ICMC) certification in the
region were as follows:
• Yatela was re-certified for a three-year period
• Iduapriem was audited in December 2015
and recommended for full certification
• Geita is currently working towards certification
Extensive progress has been made with
environmental rehabilitation at Yatela. Most of
the waste rock dumps have been rehabilitated
and the pits are being secured to achieve safe
landforms in the post-closure era. Unused
roads have been rehabilitated and some mine
infrastructure has already been removed. The
major components still to be decommissioned
and rehabilitated are the heap leach pads
and associated processing infrastructure.
The mine is still in discussion with the Malian
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Continental Africa
government regarding the list of infrastructure
to be transferred to the State, which includes
the mine village.
Final ratification of Yatela’s integrated closure
plan by the Malian Council of Ministers remains
pending. Rehabilitation and mine closure
activities are planned for completion in 2019
and site relinquishment in 2020. To read more
about this, see the .
Several closure activities were undertaken at
Obuasi, including in particular, the rehabilitation
of the historic Diawuoso tailings area and the
watercourse that runs through it. Re-mining of
the tailings was completed and rehabilitation
of the cleared footprint is planned to continue
in 2016. A new tailings management strategy,
(which would be implemented in the initial
years of mine redevelopment), is being
developed in line with Obuasi’s feasibility study.
This strategy involves the separate deposition
of two tailings streams – the first stream of
large, relatively benign flotation tailings from
which sulphide minerals have been removed;
and the second stream of BIOX® tailings,
which are cyanide-bearing and have higher
contamination potential. Environmental permit
approvals are pending completion of the
feasibility study currently underway.
Communities
understanding the local socio-economic
landscape and identifying risks related to
conflict and low levels of trust. In addition
to surveying 200 employees, focus group
discussions were held in four villages
around Geita and in three villages in nearby
Kahama. The survey highlighted the need
for closer working relationships with local
communities and district officials in the design
and implementation of local developmental
projects. The need for greater collaboration
with authorities to co-ordinate contributions
to education, technical training and alternative
livelihood initiatives was also highlighted as
an important element in improving community
relations. The survey also provided useful
insights into developing guidelines for
business activities that impact communities.
While every effort is made to avoid the
need for community resettlement and
displacement, when necessary this involves
a complex process that is dealt with in a
highly sensitive manner and requires in-depth
community engagement. There are currently
three resettlement processes underway:
• Iduapriem: agreement was successfully
reached with the developers, the local chief
and Tarkwa Municipality pertaining to a
dispute involving the acquisition of Teberebie
land by competing developers.
The first of a series of stakeholder perception
surveys to be undertaken in the region
was conducted at Geita and focused on
• Iduapriem (Mankessim resettlement):
As at 31 December 2015, 37 community
members had taken occupation of newly
built houses. Negotiations continue with the
remaining community members affected and
the Minerals Commission.
• Siguiri: agreement regarding access
to a portion of land at Siguiri was
reached with the community of Kintinian,
granting access to the area, subject
to resettlement conditions agreed with
the community currently living in the
area. The construction of houses for
resettlement is expected to begin in the
first half of 2016.
The Geita Economic Development
Programme (GEDP), sponsored by
the mine, is aimed at stimulating and
diversifying the local economy through
infrastructure growth, enterprise
development, skills training and the
expansion of local agriculture. The primary
goals of the programme are to stimulate
the development of an alternative economy
independent of the mine and to increase
local procurement – a priority at
all operations.
At Geita, we are piloting a project that
encourages our large global suppliers to
channel more of their procurement spend
into local economies.
In 2015, Geita launched three small and
medium enterprise projects, which include
boiler making, tailoring, embroidery and
knitting, welding and brick making.
Phase 1 of the GEDP agricultural project, aimed
at increasing small-scale farming productivity,
was launched in partnership with local and
regional authorities and community groups.
We supported local agriculture to promote
local procurement and create jobs.
See the case study “Youth Groups
in Tanzania”
The Geita water project was delivered in
partnership with government, sanitation
authorities and the community. We supplied
infrastructure to pipe water from Lake Victoria
and treat it to potable standards, while
Tanzanian authorities manage distribution.
In consultation with the communities around
Yatela and Sadiola over the last two decades,
we have jointly identified several opportunities to
support and assist local community members
to develop livelihoods independent of our
mining operations. This is a critical factor in
mitigating any potentially negative impacts on
the communities as the mines close.
Initiatives implemented over a period of several
years have included microfinance facilities to
stimulate the development of small enterprises,
as well as various programmes designed to
assist local farmers to increase productivity
expand their operations, and improve water
security for crops and animal husbandry.
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Continental Africa
Following on from the update of the group
policy on anti-bribery and anti-corruption,
an anti-bribery and anti-corruption policy
localisation project is being piloted at Siguiri.
Artisanal and small-scale mining
Efforts to formalise artisanal and small-scale
mining (ASM) activities are part of an ongoing
process. As ASM is largely unregulated, most
of our activities in support of formalisation
depend on direction from the relevant
government authorities in each area.
Progress in 2015 regarding the government-
led Multi-Stakeholder Partnership Initiative
(MSPI) launched in the Geita region of
northern Tanzania was delayed due to a lack
of funding by the World Bank. We expect
that with a more stable political climate,
funding will improve and the project will
advance as planned. The initiative, initially
piloted through the Lwamgasa project,
is aimed at improving the conditions and
livelihoods of artisanal miners, decreasing
environmental degradation and facilitating
peaceful co-existence between ASM and
large-scale mining companies.
In early February 2016, the military
contingent that had provided security to
Obuasi since March 2013, in terms of an
agreement between Ghana’s military and
members of the country’s Chamber of
Mines, was withdrawn from the site. No
reason was given for the withdrawal and
Obuasi was the only operation affected
among dozens which enjoy this form of
security. Shortly after the withdrawal, the
site was invaded by hundreds of illegal
miners who immediately began mining
activities in the northern part of the
concession. Police were unable to repel
these miners, known as Galamsey in Ghana.
Several acts of vandalism and arson were
reported. Tragically, John Owusu, a long-
time employee and colleague, was killed
in a vehicle accident when a contingent of
AngloGold Ashanti employees, observing the
activities of the illegal miners, fled following
an unprovoked attack on their position by
the Galamsey.
AngloGold Ashanti immediately withdrew
employees engaged in non-essential work
on the site, while critical services, such
as water pumping and treatment, medical
services and the provision of electricity
(including to some local communities),
continued. We maintained correspondence
and direct engagement with local, regional
and national authorities at the highest level,
to ensure a peaceful return to law and order
at the site. This engagement continued for
more than a month, with the illegal miners
operating unchecked, and in the process
causing significant damage to infrastructure
and to the ore body.
As of publication of this report, the
authorities in Ghana had not restored
law and order to the site, and the
illegal mining activities at Obuasi Mine
continued unchecked, causing damage to
infrastructure and undermining the quality of
the ore body, its principle asset. AngloGold
Ashanti has, since the start of this incursion,
continued to lobby vigorously at all levels
of government for the authorities to bring
a peaceful end to the illegal occupation
of parts of its concession by these illegal
miners, and restore AngloGold Ashanti
Ghana’s rights as the lawful and sole permit
holder of the concession.
There was an increase in illegal ASM activities
utilising heavy machinery within Siguiri’s
concession. As part of a country-wide clamp
down on illegal ASM activities in Guinea by
the authorities, the heavy machinery on our
concession was removed in November 2015.
In Mali, four government ministries, (Mining,
Security, Administration, and Environment)
issued a decree calling for a suspension of all
legal and illegal community mining activities
from 15 June to 30 September each year.
This suspension aims to encourage citizens to
participate in agricultural activities during the
rainy season and to nurture this sector as a
sustainable alternative livelihood. The decree
became effective in 2015, but several community
mining sites remained operational on our Sadiola
and Yatela concessions. As a result, our Sadiola
and Yatela operations have, in partnership with
the national and local government, developed a
strategic plan to address illegal mining issues. As
part of the plan, engagements with ASM miners
will highlight the key risks associated with
ASM activities.
Geita continued to experience a high
number of intrusions by trespassers and
illegal miners, including several from outside
local communities. As local authorities and
traditional leaders have no influence over
these people, current efforts to curb negative
impacts have been ineffective. Their presence
has regrettably led to incidents of community
fatalities and injuries during illegal mining
activities which remain at a worrying level.
Mine security personnel continue to monitor
the concession, while we engage with the
community and local and national authorities
to find a lasting solution.
Human rights
Our human rights due diligence standard
identifies current and future human rights risks,
allowing us to address important issues as they
arise. A localised due diligence assessment
pilot project, using an internally developed
assessment tool, was concluded in January
2016 at Geita. The findings will be assessed in
the context of our Human Rights Policy.
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Australasia
AngloGold Ashanti’s operations in the
Australasia region are Sunrise Dam and
Tropicana. Tropicana, one of our newest
mines, delivered its one millionth ounce
as it completed its second full year of
production in 2015.
• Sunrise Dam, which is wholly-owned, is located 220km
northeast of Kalgoorlie and 55km south of Laverton in
Western Australia. Mining of the Crown Pillar at the base
of the 490m deep pit was completed in early 2014.
Underground mining, which is conducted by a contract
mining company, is now the primary source of ore. Ore
is treated via conventional gravity and a CIL processing
plant which is owner-managed.
• Tropicana, a joint venture between AngloGold Ashanti
(70% and manager) and Independence Group NL (30%),
is located 200km east of Sunrise Dam and 330km east-
northeast of Kalgoorlie. First gold was poured ahead of
schedule and on budget in September 2013, following
development approval in November 2010. The open
pit operation features a large-scale, modern processing
plant which uses conventional CIL technology and
includes high-pressure grinding rolls for energy-efficient
comminution. Mining is carried out by a contract mining
company and the plant is owner-managed.
View map
OVERVIEW
Contribution to group
production – 2015 (%)
• Australasia
• Rest of AngloGold Ashanti
15
85
Contribution to regional
production – 2015 (%)
• Sunrise Dam
• Tropicana
39
61
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Australasia
Key statistics
Operational performance
Tonnes treated/milled
Pay limit
Recovered grade
Gold production (attributable)
Total cash costs
Total production costs
All-in sustaining costs (1)
Capital expenditure (attributable)
Productivity
Safety
Number of fatalities
AIFR
People
Average no. of employees: total
– Permanent employees
– Contractors
Employee turnover
Training and development expenditure
See footnotes overleaf
Production
(000oz)
11
12
13
14
15
246
258
342
620
560
560,000oz
2015 production
Productivity
(oz/TEC)
11
12
13
14
15
40.29
43.46
49.64
62.00
55.84
55.84oz/TEC
2015 productivity
Units
2015
2014
2013
7.8
0.07
2.29
0.078
2.43
620
804
1,070
986
91
62.00
0
10.73
832
194
638
15
1
4.3
0.09
2.82
0.081
2.51
342
1,047
1,333
1,376
285
49.64
0
7.91
925
281
644
22
2
Mt
oz/t
g/t
oz/t
g/t
000oz
$/oz
$/oz
$/oz
$m
8.2
0.06
1.85
0.068
2.12
560
702
919
875
78
oz/TEC
55.84
0
8.56
836
195
641
13
0.9
per million hours worked
%
$m
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Australasia
Key statistics (continued)
Environment
Total water consumption (2)
Total water use per tonne treated
Total energy usage
Total energy usage per tonne treated
Total GHG emissions
Total GHG emissions per tonne treated
Cyanide used
No. of reportable environmental incidents
Total rehabilitation liabilities:
– restoration
– decommissioning
Community and government
Community expenditure
Payments to government
– Taxation
– Withholding tax (royalties, etc.)
– Employee taxes and other contributions
Units
2015
2014
2013
ML
kL/t
PJ
GJ/t
000t CO2e
t CO2e/t
t
$m
$m
$m
$m
$m
$m
$m
$m
6,648
0.662
5.14
0.51
336
0.033
4,130
0
61
32
29
0.3
42
2
16
24
6,749
0.708
5.52
0.58
359
0.037
(3) 4,398
0
66
32
34
0.2
67
8
19
40
3,925
0.834
2.81
0.60
174
0.040
1,658
2
53
22
31
0.5
49
7
16
26
(1) Excludes stockpile write-offs.
(2) Water imports at Sunrise Dam for 2011-2014 were corrected to exclude an internal recirculation stream from the tailings facility.
(3) The increase in cyanide consumption in the Australasia region in 2014 was a consequence of Tropicana’s completing its first year of full production in 2014.
85
AIFR
(per million hours worked)
11
12
13
14
15
18.11
6.33
7.91
10.73
8.56
8.56
2015 AIFR
Total cash costs and all-in
sustaining costs
(S/oz)
11
12
13
14
15
1,431
1,211
1,680
1,047
1,376
804
986
702
875
Total cash costs
All-in sustaining costs
$702/oz
2015 total cash costs
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Australasia
OPERATIONAL PERFORMANCE
Total gold production for the Australasian
region was lower than the previous year,
although within guidance. This decline was
largely due to an 18% decrease in production
at Sunrise Dam.
At Sunrise Dam, underground ore was the
primary source of mill feed and underground
ore mined at 2.7Mt, was 15% higher than
in 2014. This ore is then blended with
stockpiled intermediate grade ore (average
1.45g/t) to meet annual processing plant
capacity, which was maintained at 3.8Mt
in 2015, above planned levels and design
throughput. Improved efficiency and a focus
on engineering reliability contributed to lower
processing costs.
Production at Sunrise Dam in 2015 was
46,000oz lower than in 2014, due primarily
to lower mined grades. The lower grade of
this ore was largely due to the nature and
location of the zones mined, which were on
the periphery of the main ore bodies and
generally more variable than those mined in
2014. The dominant source of ore in 2014
was the GQ ore body and the mine is now
transitioning to the Vogue ore body, which will
become the primary source of ore for several
years to come. Access to the Vogue ore body
will require considerable drilling, planning and
development work to establish.
Tropicana achieved guidance in 2015,
producing 491,000oz, of which 344,000oz was
AngloGold Ashanti’s share. The mine reached
its one millionth ounce on schedule, just over
two years since pouring first gold. Production
was 4% lower than in 2014 due to the decrease
in the average head grade to 2.57 g/t, which
is consistent with the grade streaming strategy
that underpins the life-of-mine plan, premised
on higher grades being treated in the first years
of production, gradually declining to the life-of-
mine head grade of approximately 2.0 g/t.
The lower grades in 2015 were partially offset
by an increase in throughput in the processing
plant to 6.2Mt (2014: 5.7Mt). Metallurgical
recoveries remained steady at approximately
90%. Mill-to-mine reconciliation, in terms of
both tonnes and grade, continues to align well.
During the year, mining was carried out in the
Tropicana, Havana and Boston Shaker pits.
Mining productivity improved significantly,
resulting in better-than-planned volumes of
material and ore mined.
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Australasia
Costs
Total cash costs for the Australasian
region declined to $702/oz compared to
$804/oz in 2014, helped by favourable
currency movements and lower oil prices.
Growth and improvement
At Sunrise Dam, work is being carried out to
assess the viability of an underground crusher
and conveyor system for haulage via a new
decline at the northern end of the operation.
The conveyor decline will also provide
exploration drilling access to the northern
parts of the ore body that have been difficult
and costly to drill from surface due to the
surface waste dumps and salt lake.
At Tropicana, studies are being carried out
to assess an alternative, low-cost approach
to mining the down-dip extensions of the
Havana and Tropicana pits, along with
extensions to the north and south.
The mining study is examining at the
application of mining techniques that are
used more commonly in mining other
commodities such as coal. The work is
based on a starter pit followed by strip
mining of a large cutback, then backfilling
the mined-out areas. This approach, which
is aimed at extending the mine life, would
reduce stripping costs substantially with
in-pit dumping of waste and shorter
haulage distances.
SUSTAINABILITY PERFORMANCE
A substantive Mineral Resource definition
programme is being carried out as part of
this study, supported by data generated by
3D seismic surveys conducted in 2014 and
2015. This data has enabled the mineralised
zones down-dip of the Tropicana ore bodies
to be imaged, generating a structural model
to help cost-effectively target deep drill
holes. The first drill testing of these targets
in 2015 returned encouraging results and
confirmed the structural interpretation. It is
expected that approximately 130,000m of
drilling will be carried out at Tropicana
in 2016.
Processing plant optimisation work is also
underway at the site to debottleneck the
processing plant, maximise usage of the
larger pieces of equipment, and increase
throughput from annual nameplate capacity
of 5.8Mt to between 7.0Mt and 7.5Mt,
through staged increases.
The increase in throughput will offset the
production decline that will occur as grades
decrease over time, as per the mine plan.
Upgrade work will be conducted during 2016
with the benefits expected to be realised from
2017 onwards.
Safety and health
Overall safety performance improved at
both mines in the region, but particularly
at Tropicana which recorded its best
performance to date. There were again
no fatalities.
At Sunrise Dam, monitoring during the
year for diesel particulate matter in the
underground mine demonstrated all
samples were below the prescribed
exposure level, reflecting continual
improvement in reducing this hazard.
Employees and labour relations
Following board approval and implementation
of AngloGold Ashanti’s Gender Equity Policy,
all countries are applying specific initiatives to
improve gender equity. Good progress has
been made regarding gender equality at the
Australasian operations.
Anti-bullying legislation came into effect in
2014 in Australia under the Fair Work Act.
During the same year, AngloGold Ashanti
conducted a global employee engagement
survey to better understand and highlight
employee concerns. In response to this,
during 2015, the Australasia region developed
and began the roll out of an employee
training programme entitled Fairness @
AGAA to focus on the importance of the
company’s values as a guide to leadership
behaviour. The programme incorporates
hands-on exercises and real-life case studies
to help participants understand unlawful
discrimination, harassment and workplace
bullying. These concepts are explained both
in terms of legislation and AngloGold Ashanti
Australia’s Fairness in Employment Policy and
Grievance Process.
In Australia, national and state laws cover
equal employment opportunity (EEO) and
anti-discrimination in the workplace. The
Fairness @ AGAA programme aligns with
EEO best practice in helping to create a
workplace that is free of discrimination and
harassment. Training has been well received
at Sunrise Dam, Tropicana and our regional
office in Perth. All employees are expected to
have been trained by mid-2016.
Environment
For the second consecutive year, there were
no reportable environmental incidents in the
Australasia region.
Completion of the Eastern Goldfields Pipeline
in December 2015 delivered natural gas
ahead of schedule to the Sunrise Dam and
Tropicana mines in Western Australia.
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Australasia
Constructed by APA Group under long-
term agreements signed with AngloGold
Ashanti Australia in July 2014, the 293km-
long pipeline will provide a clean source of
energy for power generation at the mines,
reducing exposure to diesel price volatility
and reducing the number of annual truck
movements to the remote sites by more
than half.
Construction of the pipeline began in March
2015 and delivery of gas was scheduled
to begin in January 2016, but successful
completion ahead of time enabled early
commissioning at both sites.
The switch to natural gas at Sunrise Dam,
which had been running on a combination of
liquefied natural gas and diesel, involved the
installation of two new gas generation sets.
At Tropicana, 17 new gas generators were
installed to replace the diesel generators.
Although both mines will run on 100%
natural gas, they will retain diesel back-
up capability. The pipeline construction
exceeded all production and safety targets
and its fauna management programme won
an environment award. The pipeline was
officially opened by the Western Australian
Minister for Mines and Petroleum, the Hon.
Bill Marmion, in February 2016.
Water supply constraints at Tropicana
have been effectively addressed with the
successful expansion of the process water
supply borehole field during the first half
of 2015. This has increased annual water
abstraction from 7GL to 9GL. To operate, the
mine requires up to 25ML/day of water over a
15-year mine life.
The Great Victoria Desert Biodiversity Trust
(GVDBT) was established by the Tropicana
joint venture in 2014 as part of its offset
strategy for the Tropicana mine in Western
Australia under the federal Environmental
Protection and Conservation Act 1999.
The independent Trust represents a new
structure of offset delivery and operates as a
unique partnership model between industry
and government.
Offset funds from the Tropicana joint venture will
be used by the Trust to fund scientific research
and conservation activities in the remote Great
Victoria Desert where the mine is located. The
Trust has been structured to enable funding
contributions by other organisations.
In 2015, the GVDBT reached agreement
to fund several projects in the region,
including the Great Victoria Desert Adaptive
Management Group – a collaborative
partnership between traditional owners and
five key stakeholders. The first stage of this
work will involve development of a bioregional
plan for the Great Victoria Desert. Other
funded projects relate directly to research on
threatened species in the region.
Tropicana is working actively towards
International Cyanide Management Code
certification. Sunrise Dam remains certified in
terms of this code.
Both Sunrise Dam and Tropicana have achieved
ISO 14001 and OSHAS 18001 certification.
Community
The Tjuntjuntjara Punu Project, initiated by
the community with support from AngloGold
Ashanti, focuses on transferring traditional
woodworking skills from older to younger
generations within the local indigenous
community. This award-winning initiative
fosters strong connections between elders
and young people and was adopted as
part of the Tjuntjuntjara community school
curriculum for 2015 – a clear sign that it
has a sustainable future. Aside from adding
important cultural and social aspects to the
school curriculum, the project also associates
practical skills training with learning about
safe work practices, developing literacy and
numeracy, and promoting skills sharing in the
broader community.
AngloGold Ashanti’s Australasian
operations, together with the principal
mining contractor at Tropicana, Macmahon
Holdings, are sponsoring and providing
in-kind support to the Earbus Foundation
of Western Australia. The Foundation
operates regular, mobile, ear health and
hearing screening and treatment clinics
to playgroups, kindergartens and schools
in the state of Western Australia’s remote
Goldfields-Esperance region, which
includes Laverton and our operations.
The foundation’s principal aim is to conduct
outreach programmes into regional and
remote communities in Western Australia and
to treat and reduce the incidence of middle
ear disease among indigenous children
to below the World Health Organization’s
benchmark of 4%.
The mobile clinics, which screen for middle
ear disease, provide systematic and
opportunistic screening, treatment and
surveillance. The region targeted is home to
around 1,400 indigenous children of seven
years or younger as well as to another 450
children under four years of age.
The Earbus Foundation is making a significant
contribution to the health and educational
outcomes of children in this region.
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Americas
AngloGold Ashanti has three mining
operations – open pit and deep level
mining – in its Americas region.
In addition, an active greenfields
exploration programme is underway
in Colombia.
Argentina
• Cerro Vanguardia, in which AngloGold
Ashanti has a 92.5% stake, is the
company’s sole operation in Argentina.
Fomicruz, a state company operating
in the province of Santa Cruz, owns the
remaining 7.5%. Located to the northwest
of Puerto San Julián in the province of
Santa Cruz, Cerro Vanguardia operates
multiple small open-pits with high
stripping ratios and multiple narrow-vein
underground mines. The metallurgical
plant has a daily capacity of 3,000t and
includes a cyanide recovery facility.
Brazil
• AngloGold Ashanti Córrego do Sítio
Mineração (AGA Mineração), wholly owned
by AngloGold Ashanti, comprises two
operational units (complexes) located in the
state of Minas Gerais, close to the city of
Belo Horizonte:
• The Cuiabá complex includes the Cuiabá
and Lamego mines and the Cuiabá
and Queiroz plants. Cuiabá has been in
operation for 30 years, while Lamego is
a more recently developed underground
mine in operation for six years. Ore
from the Cuiabá and Lamego mines is
processed at the Cuiabá gold plant. The
concentrate produced is transported
15km by aerial ropeway to the Queiroz
plant for processing and refining.
Total annual capacity of the complete
Cuiabá circuit is 1.75Mt. The Queiroz
hydrometallurgical plant also produces
around 200,000t of sulphuric acid as a
by-product, which is sold commercially
in local Brazilian markets. The mining
method was changed during the year
from cut-and-fill to sub-level stoping,
increasing the contribution from narrow-
vein ore bodies from 15% to 40% of the
mine’s production, and improving rock
engineering controls.
• The Córrego do Sítio complex has been
in operation since 1989 and consists
of two operations, one oxide open pit
mine (treated by heap leach) and two
sulphide underground mines (treated at
a pressure leaching plant). The distance
from the main underground mine, Mina I,
to the metallurgical plant is around 15km.
The annual capacity of Córrego do Sítio
is 1.1Mt. Currently, Córrego do Sítio
employs the sub-level stoping mining
method. The gold produced by both
operations is transported by road to the
company’s own refinery at Queiroz plant,
about 140km away.
• Serra Grande, wholly owned by AngloGold
Ashanti, is located in central Brazil in the
state of Goiás, about 5km from the city
of Crixás. It comprises three mechanised
underground mines: Mina III (ore body
IV), Mina Nova (the Pequizão ore body)
and Palmeiras. Two open pits, one in the
final stage of mining the outcrop of the
Mina III ore body, and another currently
in production at the open pit ore body V.
One dedicated metallurgical plant treats all
ore mined from these operations. Annual
plant capacity is 1.3Mt, which has grinding,
leaching, filtration, precipitation and
smelting facilities.
United States
• Cripple Creek & Victor (CC&V): On
3 August 2015, AngloGold Ashanti concluded
the sale of CC&V, its sole mine in the United
States, to Newmont Mining Corporation,
for $819m in cash plus a net smelter
return royalty. This operation is reported
as discontinued and group financial and
operating performance comparatives have
accordingly been restated.
Colombia
Exploration activities were undertaken
at three advanced exploration projects in
Colombia – La Colosa, Gramalote and
Nuevo Chaquiro. Exploration is also
being conducted in the region by
AngloGold Ashanti alone, or in joint
venture partnerships.
89
View map
OVERVIEW
Contribution to group
production – 2015 (%)
• Americas
• Rest of AngloGold Ashanti
22
78
Contribution to regional
production – 2015 (%)
• Argentina
• Brazil
33
67
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Americas
Key statistics
Operational performance (1)
Tonnes treated/milled
Pay limit
Recovered grade
Gold production (attributable)
– Continuing operations
– Discontinued operations
Silver (attributable)
Total cash costs
Total production costs
All-in sustaining costs (2)
Capital expenditure (100% basis)
– Attributable (including Colombia)
– Attributable (excluding Colombia)
Productivity
Safety
Number of fatalities
AIFR
People
Average no. of employees: total (3)
– Permanent employees
– Contractors
Employee turnover
Training and development expenditure (excluding Colombia)
See footnotes overleaf
Production from continuing
and discontinued operations
(000oz)
11
12
13
14
15
891
953
1,001
996
948
948,000oz
2015 production
Productivity from continuing operations
(oz/TEC)
11
12
13
14
15
16.86
14.72
14.25
14.38
15.05
15.05oz/TEC
2015 productivity
Units
2015
2014
2013
Mt
oz/t
g/t
oz/t
g/t
000oz
Moz
$/oz
$/oz
$/oz
$m
$m
$m
7.0
0.098
3.351
0.108
3.71
948
831
117
4.4
576
845
792
196
191
184
6.8
0.092
3.152
0.104
3.58
996
785
211
3.1
676
918
974
225
221
219
5.9
0.096
3.294
0.120
4.13
1,001
770
231
3.3
653
892
1,011
253
248
234
oz/TEC
15.05
14.38
14.25
1
5.61
7,679
5,492
2,187
8
1.6
2
3.79
8,588
5,944
2,644
13
2
0
4.74
8,374
5,979
2,395
14
3
per million hours worked
%
$m
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Americas
Key statistics (continued)
Environment (excludes Colombia)
Total water consumption
Total water use per tonne treated
Energy usage
Total energy usage per tonne treated
Total greenhouse gas (GHG) emissions
Total GHG emissions per tonne treated
Cyanide used
No. of reportable environmental incidents
Total rehabilitation liabilities (includes Colombia):
– restoration
– decommissioning
Community and government (includes Colombia)
Community expenditure
Payments to government
– Dividends
– Taxation
– Withholding tax (royalties, etc.)
– Other indirect taxes and duties
– Employee taxes and other contributions
– Property tax
– Other
Units
2015
2014
2013
AIFR
(per million hours worked)
ML
kL/t
PJ
GJ/t
000t CO2e
t CO2e/t
t
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
10,839
0.588
4.86
0.26
376
0.020
5,044
1
138
100
38
4
235
3
57
48
8
82
3
34
12,170
0.462
6.05
0.23
448
0.017
6,428
0
273
222
51
4
261
–
69
38
8
97
2
47
11,732
0.439
6.06
0.23
399
0.013
6,203
0
237
195
42
6
314
8
103
47
8
100
3
45
6.33
5.20
4.74
3.79
5.61
11
12
13
14
15
5.61
2015 AIFR
Total cash costs and all-in
sustaining costs
(S/oz)
11
12
13
14
15
507
680
653
676
1,099
1,011
974
576
792
Total cash costs
All-in sustaining costs
(1)
Operational performance data for the Americas region is for the continuing operations (excludes CC&V which was sold effective 3 August 2015), unless otherwise stated.
Comparative data for operational performance has been restated.
(2) Excludes stockpile write-offs.
(3)
100% basis and excluding Colombia and Denver regional office.
91
INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Americas
OPERATIONAL PERFORMANCE
Production
Increased production in the Americas – up
more than 5% from the previous year (excluding
production from CC&V) – was driven principally
by 13% growth at Cerro Vanguardia and a 4%
rise in AGA Mineração’s production. These
increases were partially offset by lower output
from Serra Grande. The region also produced
4Moz of silver as a by-product.
Cerro Vanguardia continued to deliver a strong
performance with record production driven
by a planned improvement in grade with a
greater proportion of mill feed coming from
underground and better recoveries.
Increased production at AGA Mineração was
a result of higher tonnage and better feed
grades from both the Córrego do Sítio and
Cuiabá complexes.
Costs
Teams in the region continued to sharpen their
focus on limiting cost increases in increasingly
challenging inflationary environments in both
Argentina and Brazil, by focusing on a range of
operational improvements.
Cost control efforts were aided by higher gold
and silver production levels, the removal of
the higher-cost CC&V production and also
local currency depreciation. On average,
the Brazilian real was 42% weaker and the
Argentinian peso 14% weaker versus the US
dollar in 2015. Efficiency initiatives covered
a range of areas, including labour and
contractor costs, energy, consumables and
stay-in-business capital, as well as a drive to
increase production.
Cerro Vanguardia continued with implementation
of phase II of the Project 500 efficiency initiative
with a focus on optimising mill throughput,
improving silver recovery, delivering more
underground ore to the mill, and improving the
overall effectiveness of key administration areas
such as procurement and warehousing.
In Brazil, the cost management programme
begun in 2013, continued into its third
year, yielding a range of productivity
improvements including optimisation of
operational processes, reductions in the
price of power and materials and lower
administrative expenses. At Córrego do
Sítio, higher grades contributed an additional
20,000oz from the Carvoaria ore body and
increased development rates further aided
cost improvements. Other productivity
improvements were realised in the oxide mine.
In May, Serra Grande began implementing
our analyse-and-improve project, which
sees participants from various disciplines
undergoing rigorous training and then working
in groups to develop practical projects –
focusing on sustainable innovation and cost
efficiency – to further enhance the mine’s
performance in a low gold price environment.
The programme has already begun yielding
significant benefits.
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Americas
Capital expenditure
The region’s capital expenditure of $196m
(including Colombia and excluding
CC&V), was 13% lower than the previous
year. While sharp currency devaluations
had a negative effect on the purchase of
imported items, it benefited expenditure
on Ore Reserve development and locally-
produced items.
Various alternatives were evaluated to
reduce and/or contain capital expenditure
during the year including a strategic
review and a change in the scope of
primary development work, thus saving
on additional equipment; contractor
negotiations on jumbo drill rigs; and
capitalising on import restrictions in
Argentina, by postponing or eliminating
stay-in-business purchases.
Growth and improvement
At Cerro Vanguardia, the expansion project
to increase underground production over
the next five years is underway and remains
on schedule. During 2015, an initiative
to accelerate open pit and underground
operations using an external contractor was
approved in order to improve the production
profile. Additional cost reductions are planned
by further increasing plant throughput and
recovery as well as by optimising shift
configuration and backfilling mined-out pits
with waste material to reduce haul distances.
Additionally, in February 2016, an exploration
and option agreement was signed to acquire
mineral rights adjacent to Cerro Vanguardia,
where exploration will be focused in the next
few years.
The focus at Cuiabá remained on ventilation
and transport projects to support mining at
increased depth, as well as the overall drive
to maintain stable production levels in coming
years. Córrego do Sítio continued initiatives
to improve production in the medium term
including development of the underground
Mina I ore body, which is expected to be the
main contributor in 2016. Drilling programmes
aimed at opening a new pit at Mina III and
new underground sites at Mina II and São
Bento Deep are underway.
At Serra Grande, underground diamond
directional drilling proved the continuity of
one of the Mina III high-grade gold-bearing
quartz veins, at depths from 900m to 1,150m.
Importantly, this vein appears to increase
in both thickness and length along strike.
Palmeiras Sul targets were drilled in the
mine’s tenements confirming the addition of
a high-grade Mineral Resource. Surface and
underground drilling continued to define the
Inga ore body, which is expected to begin
production in 2016. New open-pit potential
was also confirmed, creating a pipeline of small
pits expected to continue producing until 2021
at least. This is also expected to provide an
avenue to additional discoveries.
Colombia remains a key area of focus
and its exploration programme continues
to yield encouraging results. The Nuevo
Chaquiro target is a porphyry-related,
copper-gold mineralised stockwork system,
located within the Western Cordillera,
where long intersections of significant
copper mineralisation with gold credits were
intersected during 2013 and 2014. Diamond
drilling was undertaken in 2015 to delineate
the limits of the higher-grade core and increase
confidence in the highest-grade portion of the
ore body to support a small, phase I concept
design. Advanced studies to complete the
concept study are planned for 2016.
Colombian authorities formally approved
the environmental impact study submitted
in February 2015, after verifying it complies
with Colombian regulation as well as with
international standards and best practices.
The study reflects Gramalote’s commitment
to develop a sustainable and responsible
commercial, large-scale mining project.
The environmental licence, the first of its kind,
coming after decades since Colombia last
licensed a large-scale mining project, was
granted in full. The licence covers an initial
approximate three-year period prior to the
start of construction that will be dedicated
to resettling physically and/or economically
the individuals living in the immediate area of
influence. The resettlement process will be
conducted in compliance with national and
international relocation standards, including
those of the World Bank and the International
Finance Corporation.
Project planning work will continue, at
reduced expenditure levels, as we continue
to evaluate this project against, other projects
and opportunities for capital deployment,
with prevailing market conditions in mind.
Gramalote exploration focused on regional
exploration drilling as well as drilling to improve
definition of the low-grade saprolite (oxide
ore) Mineral Resource. The Mineral Resource
model was updated for the three Gramalote
deposits: Gramalote Central, Monjas West
and Trinidad, incorporating the latest drill-
hole information, reviewed estimation
parameters and changes in the geo-statistical
methodology (localised uniform conditioning).
At the La Colosa project, drilling focused on
data collection at infrastructure locations.
No Mineral Resource drilling was conducted.
The geological model was updated during
the year and reported an in-pit Mineral
Resource of 28Moz (the main deposit
remains open to the north-west and at
depth). In early 2015, geotechnical and
hydrogeological drilling was initiated at
the proposed tailings management facility
and the waste rock facility. Mine planning
continues on validating current base-case
opportunities and a small mine concept,
with several alternatives under evaluation.
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Americas
Metallurgical test work completed in
2015 was conducted to validate process
opportunities, including an increase in
recovery and plant throughput. A trade-off
study is in progress and is expected to be
finalised in early 2016.
SUSTAINABILITY PERFORMANCE
Safety
One fatality was reported in the Americas in
2015 (2014: 2), when an employee died in a
fall-of-ground incident at Lamego. The AIFR for
the region was 5.61 per million hours worked
in 2015 (2014: 3.79).
In Brazil, emergency plans for all mines were
revised with assistance from an external
specialist, and more intensive use was
made of the bow-tie analysis risk mitigation
method. Major hazard control guidelines were
verified at AGA Mineração and Serra Grande.
Employee safety performance is being more
actively monitored and recognised, and
contractors are more active participants in
audits, inspections and monthly meetings,
where work safety issues are raised and
actions resulting from field inspections are
followed up.
At Cerro Vanguardia, the bow-tie safety risk
analysis was employed and work has been
done to mitigate all identified risks. Also,
compliance and effectiveness of critical
controls are being monitored in order to be
considered in the operation.
Health
Several training sessions were conducted
at Cerro Vanguardia to reinforce awareness
of health issues and employee medical
examinations were performed.
At the Brazilian operations, preventive
campaigns included hypertension prevention,
drug abuse prevention and immunisation
against influenza and H1N1. Awareness
campaigns covered topics including anti-
smoking and obesity, breast and prostate
cancer and HIV/ AIDS. Occupation hygiene
measures remain in place to reduce noise and
dust pollution.
South America has experienced an outbreak
of Zika fever, caused by the Zika virus.
Awareness campaigns are being conducted
in addition to those run by governments and
other organisations. These include close
monitoring and control measures put in place
to prevent and/or eliminate mosquitoes,
including the removal of stagnant water
sources that can easily become breeding sites.
Employees
Over the last two years our operations in
Brazil have implemented training for all
employees on compliance and ethics with a
particular focus on anti-bribery and anti-
corruption. The training forms one of the key
elements of the compliance programme and
incorporates online training, printed materials
and seminars. Senior managers have also
been trained with regard to the Clean
Company Act in Brazil. In 2015, training was
extended to contractors and government
intermediaries in particular.
This process is part of our responsible
management of cyanide during the mining
process, which helps to limit the environmental
impact and our long-term closure liability.
As part of the group-wide human rights
ambassador programme, roll out of human
rights training is currently underway in Brazil
and Colombia.
Environment
The one reportable environmental incident
(2014: 0) in the region was the result of a
leak of process water from Córrego do Sítio’s
metallurgical plant into the Conceição River.
Responsive action was taken immediately.
Follow-up actions included an environmental
clean-up and related environmental and
water-quality monitoring. The region also had
a few minor unreportable incidents in 2015.
All the Americas operations remained
compliant with ISO 14001.
During 2015, Cerro Vanguardia and Queiroz
and Córrego do Sítio I, both at AGA
Mineração, were recertified in terms of the
International Cyanide Management Code
for an additional three-year period. Serra
Grande was audited at the end of 2015
and recommended for full recertification
while Córrego do Sítio II is actively working
towards certification. At Cerro Vanguardia, a
cyanide recovery plant facilitates the removal
of cyanide from waste products and tailings,
to prevent it posing an environmental threat.
Severe drought over the last few years has
resulted in reduced hydroelectric power
capacity in Brazil. In response, several
immediate measures were implemented to
reduce energy consumption, eliminate the
need to purchase power from the open market,
and reduce capacity strain on the national
power grid. These actions benefitted both the
company and community while the short-term
power supply crisis persisted in the region.
The regional launch of our Energy Management
System standard was coupled with a local
project to implement the ISO 50001 Energy
Management System at our Brazilian
operations. The development of related tools
and processes was completed during 2015
and implementation will continue into 2016.
Energy efficiency measures include ventilation-
on-demand control systems, the installation
of high-performance motors and expansion of
energy metering and monitoring systems.
Communities
In Brazil, our social investment strategy
prioritises projects relating to job and income
generation, education, culture and environment.
AngloGold Ashanti works with local institutions
to make social projects more sustainable and
to minimise dependency on mining operations
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INTEGRATED REPORT 2015 REGIONAL REVIEWS continued
Americas
in the long term. Major projects and activities
implemented in Brazil are:
• Public Call for Projects: Community
encourages company employees to be
involved with and to contribute to social
causes in local municipalities.
investment projects are selected following
public requests for specific initiatives and
evaluation by a committee comprising
professionals from AngloGold Ashanti,
social project specialists and community
representatives. The Public Call for Projects
has supported 122 projects over five years
in the municipalities neighbouring our
operations, with direct benefit to around
20,000 people. In 2015, the Public Call for
Projects added an environmental focus.
• Local suppliers programme: Serra
Grande, together with the Federation of
Industries of the State of Goiás and other
mining companies, sponsored a programme
to develop and certify local suppliers. The
regional Business Roundtable gathered 45
local suppliers from five municipalities to
provide local mining companies with greater
knowledge of the products and services
supplied by the participants, in order to
stimulate increased purchases in the north
region of Goiás.
• Volunteer programme: Created by
AngloGold Ashanti in 2004, the Holding
Hands Programme has benefitted around
27,000 people and 66 social institutions
through the participation of 2,400 volunteers
over the last 10 years. The programme
• The Good Councils project, run by Serra
Grande supports local municipalities in the
care of and to promote the rights of elderly
people through workshops and by assisting
in providing the necessary qualifications to
local civil servants. Eighty people have been
assisted to date.
• The Good Neighbourhood Programme
aims to strengthen our relationship
with local communities. Regular public
meetings are held at which community
members participate and suggest topics for
discussion. A public newspaper is produced
specifically to report on topics of community
interest and concern.
In Argentina, Cerro Vanguardia engages
with the community of San Julián through
the local development agency that was
established in 2004 as a collaboration
between the mine and local and provincial
authorities, the local university, the rural
association and the Chamber of Commerce.
In 2015, we renewed our corporate social
responsibility agreement with the agency.
Current projects include the construction of
a gymnasium for the Club Atletico and two
student lodges, one for the Racing Club of
San Julián and the other for the University
of Southern Patagonia. The latter involved
the refurbishment of a historic building. In
the area of health, we equipped the local
hospital with a modern video endoscope.
Community investment in Colombia in
2015 amounted to $1.2m and was spent
on social infrastructure, education, small-
medium enterprise support and institutional
strengthening projects. All projects were
developed in collaboration with communities,
and most with the support of government.
This has helped ensure the sustainability
of the projects and their ownership by the
communities. A key component and a major
achievement in Gramalote is in the area of
public participation.
In response to community concerns that
AngloGold Ashanti’s activities would reduce
community access to land and negatively
affect their livelihoods, we embarked on a
community engagement campaign known
as ‘Mining Wednesdays’ at our Quebradona
project. Interested parties (community
members, NGOs and local councillors) are
invited to participate in public forums, held
every second Wednesday, during which
mining-related topics of interest and concern
to the community are discussed. ‘Mining
Wednesdays’ allow us to engage openly and
positively with the community by listening and
replying to concerns, as well as educating
community members about our operations,
shared values and environmental and
community support mechanisms.
Artisanal and small-scale mining
At our Gramalote project in Colombia,
we are making progress in the design
and implementation of a co-existence
project aimed at formalising a group of
ASMs. This is a joint initiative with the
Colombian Ministry of Mines, the Antioquia
Secretary of Mines, and the artisanal
miners. This government-led model of
co-existence is designed to create a
separate legal operation for the miners,
subject to environmental compliance and
other applicable regulations. In addition,
the miners will be provided with the
tools and resources to work safely in
an environmentally responsible manner
in designated areas with good artisanal
mining potential. Expert resources have
been engaged to conduct technical and
financial feasibility studies to determine the
viability of the model. Plans to train and
develop artisanal miners in mining process
best practices are being formulated. It is
expected that once the model has
been validated and approved, construction
of a small, formal operating mine should
be initiated.
95
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION
Operational, financial and sustainability statistics
Production volumes
South Africa
Vaal River
Great Noligwa (1)
Kopanang
Moab Khotsong
West Wits
Mponeng
Savuka (2)
TauTona (2)
Surface Operations
Surface Operations (3)
Continental Africa
DRC
Kibali (45%) (4)
Ghana
Iduapriem
Obuasi (5)
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%)
Yatela (40%) (6)
Namibia
Navachab (7)
Tanzania
Geita
See footnotes overleaf
Attributable tonnes treated/milled (Mt)
2015
36.8
0.7
0.9
0.8
0.8
33.6
27.2
3.1
4.7
1.0
2014
38.4
0.4
0.8
0.7
1.1
0.9
34.5
29.9
2.5
4.9
2.2
2013
39.2
0.4
1.0
0.7
1.6
1.0
34.5
26.9
0.4
4.8
1.7
2012
22.2
0.5
0.9
0.6
1.3
0.2
0.8
17.9
27.8
4.6
2.1
10.0
10.1
10.2
10.1
1.2
2.1
5.2
1.3
2.1
0.9
0.7
5.2
1.4
2.0
1.0
1.4
4.0
1.8
1.9
1.1
1.4
4.8
2011
16.4
0.5
1.5
0.9
1.6
0.2
1.0
10.7
26.3
4.3
2.0
9.7
1.8
2.0
1.1
1.5
3.9
96
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Production volumes (continued)
Australasia
Australia
Sunrise Dam
Tropicana (70%) (4)
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande (8)
CONTINUING OPERATIONS
Discontinued operations
Cripple Creek & Victor (9)
(1) Great Noligwa and Moab Khotsong are treated as one cash-generating unit from 1 January 2015.
(2) In 2013, Savuka and TauTona were combined under TauTona as one cash-generating unit.
(3) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
(4) Kibali and Tropicana began production in the fourth quarter of 2013.
(5) Obuasi was placed on limited operations at the end of 2014.
(6) Yatela mine in closure from 2015.
(7) Sold effective 30 June 2014.
(8) AngloGold Ashanti’s holding increased to 100% (from 50%) from 1 July 2012.
(9) Cripple Creek & Victor was sold on 3 August 2015.
Attributable tonnes treated/milled (Mt)
2015
8.2
3.9
4.3
7.0
3.1
2.6
1.3
79.1
11.3
90.4
2014
7.8
3.8
4.0
6.8
3.0
2.5
1.3
82.9
19.3
102.2
2013
4.3
3.4
0.9
5.9
2.3
2.3
1.3
76.3
20.8
97.1
2012
3.4
3.4
4.8
1.7
2.2
0.9
58.2
20.9
79.1
2011
3.6
3.6
3.3
1.0
1.7
0.6
49.6
20.3
69.9
97
INTEGRATED REPORT 2015
FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Production volumes (continued)
South Africa
Vaal River
Great Noligwa (1)
Kopanang
Moab Khotsong
West Wits
Mponeng
Savuka (2)
TauTona (2)
Surface Operations
Surface Operations (3)
Technology
Technology
Continental Africa
DRC
Kibali (45%) (4)
Ghana
Iduapriem
Obuasi (5)
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%)
Yatela (40%) (6)
Namibia
Navachab (7)
Tanzania
Geita
See footnotes overleaf
Average grade recovered (g/t)
Attributable gold production (000oz)
2015
2014
2013
2012
2011
5.43
8.50
8.44
8.46
0.18
2.93
1.27
1.47
0.80
1.24
1.04
3.18
6.44
5.55
11.04
8.99
8.21
0.20
2.95
1.13
4.67
0.89
1.06
1.28
0.59
1.44
2.86
6.15
5.23
9.47
7.10
7.34
0.22
3.41
1.43
4.94
0.82
1.23
1.34
0.93
1.39
3.54
5.58
6.47
9.39
9.71
6.69
7.55
0.48
1.44
4.82
0.79
1.70
1.90
1.04
1.46
3.98
5.72
5.40
8.16
9.40
6.09
7.63
0.30
1.22
4.79
0.76
1.41
1.64
1.06
1.59
3.47
98
2015
1,004
2014
1,223
2013
1,302
2012
1,212
2011
1,624
117
254
219
209
193
78
140
234
313
232
223
83
178
212
354
235
240
84
164
162
405
37
189
172
94
307
266
500
49
244
164
12
1,435
3
1,597
1,460
1,521
1,570
289
193
53
255
49
69
237
177
243
290
44
85
11
33
40
221
239
268
57
86
27
63
527
477
459
180
280
247
81
100
29
74
531
199
313
249
99
121
29
66
494
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Production volumes (continued)
Australasia
Australia
Sunrise Dam
Tropicana (70%) (4)
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande (8)
CONTINUING OPERATIONS
Discontinued operations
Cripple Creek & Victor (9)
Average grade recovered (g/t)
Attributable gold production (000oz)
2015
2014
2013
2012
2011
1.97
2.48
6.88
5.63
3.27
2.13
2.78
6.08
5.65
3.28
2.46
2.40
6.58
5.70
3.42
2.39
2.16
6.48
6.07
3.36
6.23
7.43
3.59
0.35
0.32
0.34
0.40
0.39
2015
560
216
344
831
278
421
132
3,830
117
3,947
2014
620
262
358
785
246
403
136
4,225
211
4,436
2013
342
276
66
770
241
391
138
3,874
231
4,105
2012
258
258
706
219
388
98
3,697
247
3,944
2011
246
246
624
196
361
67
4,064
267
4,331
(1) Great Noligwa and Moab Khotsong are treated as one cash-generating unit from 1 January 2015.
(2) In 2013, Savuka and TauTona were combined under TauTona as one cash-generating unit.
(3) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
(4) Kibali and Tropicana began production in the fourth quarter of 2013.
(5) Obuasi was placed on limited operations at the end of 2014.
(6) Yatela mine in closure from 2015.
(7) Sold effective 30 June 2014.
(8) AngloGold Ashanti’s holding increased to 100% (from 50%) from 1 July 2012.
(9) Cripple Creek & Victor was sold on 3 August 2015.
99
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Productivity (oz/TEC)
South Africa
Vaal River
Great Noligwa (1)
Kopanang
Moab Khotsong
West Wits
Mponeng
Savuka (2)
TauTona (2)
Surface Operations
Surface Operations (3)
Continental Africa
DRC
Kibali (45%) (4)
Ghana
Iduapriem
Obuasi (5)
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%)
Yatela (40%) (6)
Namibia
Navachab (7)
Tanzania
Geita
See footnotes overleaf
2015
3.74
2.41
3.44
3.48
3.70
2014
4.40
2.69
2.68
4.74
4.74
4.17
8.12
20.61
8.95
14.36
2013
4.47
2.51
3.11
4.22
5.33
4.01
9.35
9.97
2012
4.19
2.34
2.61
3.05
6.33
3.98
4.03
2011
5.85
2.72
4.79
5.03
8.38
4.83
5.13
9.86
10.97
21.32
11.41
72.34
68.50
83.56
16.32
5.76
20.14
6.10
18.41
4.10
15.61
5.19
16.97
5.68
14.59
15.64
12.88
12.10
12.03
15.98
13.46
10.13
14.23
10.73
17.88
10.56
10.21
35.72
12.27
8.82
42.00
15.53
8.89
6.97
5.63
6.43
7.00
27.78
19.50
15.55
19.20
18.11
100
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Productivity (oz/TEC) (continued)
Australasia
Australia
Sunrise Dam
Tropicana (70%) (4)
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande (8)
CONTINUING OPERATIONS
Discontinued operations
Cripple Creek & Victor (9)
(1) Great Noligwa and Moab Khotsong are treated as one cash-generating unit from 1 January 2015.
(2) In 2013, Savuka and TauTona were combined under TauTona as one cash-generating unit.
(3) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
(4) Kibali and Tropicana began production in the fourth quarter of 2013.
(5) Obuasi was placed on limited operations at the end of 2014.
(6) Yatela mine in closure from 2015.
(7) Sold effective 30 June 2014.
(8) AngloGold Ashanti’s holding increased to 100% (from 50%) from 1 July 2012.
(9) Cripple Creek & Victor was sold on 3 August 2015.
2015
55.84
45.09
65.69
15.05
2014
62.00
58.29
65.03
14.38
2013
49.64
50.22
47.37
14.25
2012
43.46
2011
40.29
43.46
40.29
14.72
16.86
22.82
21.14
20.89
18.21
17.64
13.58
10.97
8.87
13.03
11.32
9.30
12.97
11.19
7.77
14.22
11.45
7.66
17.41
12.98
8.86
29.63
33.33
37.45
37.46
44.31
101
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Costs
South Africa
Vaal River
Great Noligwa (2)
Kopanang
Moab Khotsong
West Wits
Mponeng
Savuka (3)
TauTona (3)
Surface Operations
Surface Operations (4)
Continental Africa
DRC
Kibali (45%) (5)
Ghana
Iduapriem
Obuasi (6)
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%)
Yatela (40%) (7)
Namibia
Navachab (8)
Tanzania
Geita
See footnotes overleaf
2015
881
1,014
798
874
883
912
678
609
995
966
827
698
818
480
Total cash costs
($/oz produced)
2014
849
1,074
1,023
685
746
882
941
783
578
2013
850
1,100
918
797
719
920
883
869
471
2012
873
1,226
1,015
1,040
639
1,041
924
943
830
865
1,086
861
1,406
955
1,187
799
918
938
2011
694
1,194
681
689
546
864
818
660
698
800
862
849
767
1,169
1,758
810
816
1,530
1,036
1,012
427
350
717
1,162
1,028
1,438
752
599
773
1,334
1,530
691
515
102
All-in sustaining costs (1)
($/oz sold)
2014
1,064
1,185
1,256
903
2013
1,120
1,305
1,255
1,223
981
1,016
2015
1,088
1,226
1,018
1,170
1,044
1,059
1,149
1,006
815
1,153
968
969
1,202
642
588
529
2012
1,189
1,530
1,497
1,634
883
1,607
1,316
754
1,235
1,020
1,185
965
815
886
1,020
1,374
1,025
2,214
1,437
2,201
917
1,085
1,105
1,298
1,133
1,795
719
890
1,051
1,510
1,653
781
833
765
1,249
1,888
1,329
816
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Costs (continued)
Australasia
Australia
Sunrise Dam
Tropicana (70%) (5)
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande (9)
CONTINUING OPERATIONS
Discontinued operations
Cripple Creek & Victor (10)
Total cash costs
($/oz produced)
2014
804
1,105
545
676
692
644
748
785
829
2013
1,047
1,110
568
653
622
646
719
836
732
2012
1,211
2011
1,431
1,126
1,367
680
576
696
821
842
638
507
368
529
768
712
564
All-in sustaining costs (1)
($/oz sold)
2014
986
1,214
752
974
2013
1,376
1,321
1,113
1,011
2012
1,680
1,470
1,099
938
912
935
966
1,062
1,020
1,023
970
1,195
1,114
1,168
1,285
2015
875
1,110
671
792
873
712
861
910
1,030
1,147
927
817
2015
702
970
492
576
625
518
635
712
894
(1)
All-in sustaining costs are available from 2012 only.
(2) Great Noligwa and Moab Khotsong are treated as one cash-generating unit from 1 January 2015.
(3) In 2013, Savuka and TauTona were combined under TauTona as one cash-generating unit.
(4) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
(5) Kibali and Tropicana began production in the fourth quarter of 2013.
(6) Obuasi was placed on limited operations at the end of 2014.
(7) Yatela mine in closure from 2015.
(8) Sold effective 30 June 2014.
(9) AngloGold Ashanti’s holding increased to 100% (from 50%) from 1 July 2012.
(10) Cripple Creek & Victor was sold on 3 August 2015. Numbers have been included to the date of disposal.
103
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Capital expenditure ($m)
South Africa
Vaal River
Great Noligwa (1)
Kopanang
Moab Khotsong
West Wits
Mponeng
Savuka (2)
TauTona (2)
Surface Operations
Surface Operations (3)
Technology
Technology
Continental Africa
DRC
Kibali (45%) (4)
Mongbwalu (86.22%)
Ghana
Iduapriem
Obuasi (5)
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%)
Yatela (40%)
Namibia
Navachab (6)
Tanzania
Geita
Other and non-controlling interests
See footnotes overleaf
2015
206
21
47
85
28
17
8
315
124
15
23
25
6
2
116
4
2014
264
7
26
45
97
35
46
8
454
179
21
82
26
6
6
1
129
4
2013
451
13
52
117
171
59
39
839
341
28
196
25
13
42
3
5
154
32
2012
583
27
94
159
195
20
73
15
925
263
77
95
185
28
1
37
2
15
216
6
2011
532
29
92
147
172
8
79
5
569
73
1
73
132
15
1
14
1
48
206
5
104
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Capital expenditure ($m) (continued)
Australasia
Australia
Sunrise Dam
Tropicana (70%) (4)
Other
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande (7)
Other and non-controlling interests
Other
CONTINUING OPERATIONS
Discontinued operations
Cripple Creek & Victor (8)
Sub-total
Equity-accounted investments
(1) Great Noligwa and Moab Khotsong are treated as one cash-generating unit from 1 January 2015.
(2) In 2013, Savuka and TauTona were combined under TauTona as one cash generating unit.
(3) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash generating unit.
(4) Kibali and Tropicana began production in the fourth quarter of 2013.
(5) Obuasi was placed on limited operations at the end of 2014.
(6) Sold effective 30 June 2014.
(7) AngloGold Ashanti’s holding increased to 100% (from 50%) from 1 July 2012.
(8) Cripple Creek & Victor was sold on 3 August 2015.
105
2015
78
29
48
1
196
62
89
33
12
4
799
58
857
(131)
726
2014
91
31
59
1
225
54
127
38
6
6
1,040
169
1,209
(191)
1,018
2013
285
39
241
5
253
64
123
40
26
8
1,836
157
1,993
(411)
1,582
2012
369
49
315
5
309
88
162
33
26
36
2,222
100
2,322
(303)
2,019
2011
102
27
73
2
399
81
261
22
35
17
1,619
67
1,686
(89)
1,597
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Average no. of employees (permanent and contractor employees)
South Africa
Vaal River
Great Noligwa (1)
Kopanang
Moab Khotsong
West Wits
Mponeng
Savuka (2)
TauTona (2)
Surface Operations
Surface Operations (3)
Other
Continental Africa
DRC
Kibali (45%) (4)
Ghana
Iduapriem
Obuasi (5)
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%)
Yatela (40%) (5)
Namibia
Navachab (7)
Tanzania
Geita
See footnotes overleaf
2015
2014
2013
2012
2011
28,325
29,511
32,406
34,186
32,082
4,052
6,469
2,207
4,424
4,573
2,731
5,365
5,692
6,249
6,737
6,516
4,656
4,712
5,256
2,929
3,970
11,942
3,058
3,800
16,070
2,142
4,704
16,625
2,061
2,245
158
3,063
6,014
6,645
6,262
1,157
4,472
1,874
4,699
16,621
2,967
5,892
6,581
5,788
815
4,507
745
4,787
16,539
1,565
856
1,352
3,541
1,590
5,194
1,549
5,373
1,543
5,538
3,445
3,494
3,673
3,643
3,666
389
585
500
654
226
793
390
810
367
938
319
783
407
953
328
756
377
790
3,041
3,265
3,504
3,594
3,541
106
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Average no. of employees (permanent and contractor employees) (continued)
Australasia
Australia
Sunrise Dam
Tropicana (70%) (4)
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande (8)
Other, including corporate and non-gold producing subsidiaries
CONTINUING OPERATIONS
Discontinued operations
Cripple Creek & Victor (9)
2015
836
400
436
7,679
2014
832
374
458
7,441
2013
925
457
468
7,542
2012
494
494
2011
509
509
7,204
6,808
1,687
1,640
1,696
1,884
1,644
4,546
1,446
2,731
51,513
753
52,266
4,398
1,403
3,056
56,910
1,147
58,057
4,377
1,469
8,104
65,602
832
66,434
4,239
1,081
6,625
65,130
692
65,822
3,825
1,339
4,723
60,661
581
61,242
(1)
Great Noligwa and Moab Khotsong are treated as one cash-generating unit from 1 January 2015.
(2) In 2013, Savuka and TauTona were combined under TauTona as one cash-generating unit.
(3) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
(4) Kibali and Tropicana began production in the fourth quarter of 2013. The 2014 number for Kibali includes 3,249 employees who were working on projects.
(5) Obuasi was placed on limited operations at the end of 2014.
(6) Yatela mine in closure from 2015.
(7) Sold effective 30 June 2014.
(8) AngloGold Ashanti’s holding increased to 100% (from 50%) from 1 July 2012.
(9) Cripple Creek & Victor was sold on 3 August 2015. Employee numbers have been included to the date of disposal.
107
INTEGRATED REPORT 2015
FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Safety
South Africa
Vaal River
Great Noligwa (2)
Kopanang
Moab Khotsong
West Wits
Mponeng
Savuka (3)
TauTona (3)
Surface Operations
Surface Operations (4)
Other
Continental Africa
DRC
Mongbwalu
Ghana
Iduapriem
Obuasi (5)
Guinea
Siguiri
Mali
Sadiola
Yatela
Namibia
Navachab (6)
Tanzania
Geita
See footnotes overleaf
2011
15.57
23.92
23.18
20.48
15.39
8.39
13.36
6.44
3.03
11.04
6.61
2.37
1.27
2.44
1.52
2.00
3.60
Number of fatalities
2015
2014
2013
9
1
2
3
1
1
1
1
0
1
0
0
0
0
4
0
1
0
3
0
0
0
0
0
0
0
0
0
0
0
0
6
0
0
1
3
1
0
1
2
0
1
1
0
0
0
0
0
2012
11
1
0
2
3
2
3
0
0
5
1
1
2
0
0
0
0
1
2011
9
1
4
1
2
0
0
0
1
3
0
0
3
0
0
0
0
0
2015
10.81
17.50
13.54
13.37
11.88
5.14
0.50
0.00
1.28
0.13
0.51
0.95
0.47
All injury frequency rate (1)
2014
11.85
15.44
13.56
18.62
16.33
12.60
5.42
1.56
1.98
1.06
3.01
0.39
0.50
0.00
6.39
0.51
2013
12.63
12.06
17.58
16.35
17.86
14.16
5.08
1.97
6.15
1.98
2.39
0.64
1.28
0.00
5.58
0.98
2012
13.24
17.72
19.92
17.14
14.49
21.23
10.63
6.71
2.26
4.47
3.08
2.13
1.09
2.21
0.36
8.22
1.62
108
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Safety (continued)
Australasia
Australia
Sunrise Dam
Tropicana (7)
Americas
Argentina
Cerro Vanguardia
Brazil
AGA Mineração
Serra Grande (8)
Colombia
United States
Cripple Creek & Victor
Greenfield exploration
AngloGold Ashanti
All injury frequency rate (1)
Number of fatalities
2015
8.56
11.59
6.80
5.61
1.63
5.51
9.49
1.64
19.47
7.96
7.18
2014
10.73
12.54
9.96
3.79
1.40
4.22
4.53
0.32
9.54
3.57
(9) 7.36
2013
7.91
11.19
8.60
4.74
0.58
5.94
6.10
2.51
9.89
4.20
7.48
2012
6.33
5.46
15.75
5.20
1.72
5.82
5.15
4.43
12.75
6.76
7.83
2011
18.11
19.40
27.72
6.33
1.59
4.05
3.48
16.84
19.80
19.83
9.76
2015
2014
2013
2012
2011
0
0
0
1
0
1
0
0
0
0
11
0
0
0
2
0
2
0
0
0
0
6
0
0
0
0
0
0
0
0
0
0
8
0
0
0
1
1
0
0
0
0
1
18
0
0
2
0
1
0
1
0
1
15
(1) Per million hours worked.
(2) Great Noligwa and Moab Khotsong are treated as one cash-generating unit from 1 January 2015.
(3) In 2013, Savuka and TauTona were combined under TauTona as one cash-generating unit.
(4) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
(5) Obuasi was placed on limited operations at the end of 2014.
(6) Sold effective 30 June 2014.
(7) Tropicana began production in the fourth quarter of 2013.
(8) AngloGold Ashanti’s holding increased to 100% (from 50%) from 1 July 2012.
(9) All injury frequency rate for the group adjusted for earthquake impact is 7.15.
109
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Environmental performance (1)
Energy usage (PJ)
Water usage (ML)
2011
11.68
6.09
5.59
11.51
0.98
1.52
2.43
2.00
0.62
0.59
3.37
2.15
2.15
2015
25,182
13,259
3,949
7,974
16,931
750
3,129
2014
27,219
13,402
2,626
11,191
17,582
342
3,696
2013
27,228
14,331
3,160
9,737
21,031
795
3,685
2012
23,813
14,748
4,501
4,564
19,132
582
3,820
2011
18,821
13,572
5,249
20,203
408
4,047
5,145
5,375
6,478
4,650
6,097
4,625
33
4,051
17
3,249
6,648
1,771
4,877
4,101
6,749
1,866
4,883
4,330
254
1,005
4,484
3,925
1,829
(5) 2,097
3,837
1,578
3,602
1,036
990
1,043
3,675
1,700
3,970
1,572
1,700
1,572
South Africa
Vaal River (2)
West Wits (2)
Mine Waste Solutions
Continental Africa
Ghana
Iduapriem
Obuasi (3)
Guinea
Siguiri
Mali
Sadiola (3)
Yatela
Namibia
Navachab (4)
Tanzania
Geita
Australasia
Australia
Sunrise Dam (5)
Tropicana (6,7)
See footnotes overleaf
2015
11.42
5.66
5.03
0.73
7.99
0.89
0.56
2.09
1.40
0.12
2.93
5.14
1.97
3.17
2014
11.31
5.31
5.24
0.76
8.95
0.62
1.46
1.97
1.59
0.24
3.21
5.52
2.29
3.23
2013
11.80
5.63
5.55
0.62
12.01
1.25
1.77
2.31
2.10
0.52
0.74
3.32
2.81
2.07
0.74
2012
11.65
5.87
5.57
0.21
12.13
1.00
1.74
2.34
2.17
0.70
0.75
3.43
2.08
2.08
110
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Environmental performance (1) (continued)
Americas
Argentina
Cerro Vanguardia
Brazil
AGA Mineração
Serra Grande
United States
Cripple Creek & Victor
AngloGold Ashanti
Energy usage (PJ)
Water usage (ML)
2015
4.86
1.69
1.53
0.48
2014
6.04
1.71
1.48
0.48
2013
6.06
1.72
1.41
0.51
2012
5.88
1.59
1.35
0.48
2011
5.25
1.48
1.18
0.45
1.16
29.41
2.37
31.95
2.42
32.68
2.46
31.74
2.14
30.59
2015
2014
2013
10,839
12,170
11,732
2012
7,456
2011
6,749
1,121
1,079
964
923
939
5,959
1,506
2,252
59,601
6,233
1,921
2,937
63,720
6,346
1,380
3,042
63,916
4,213
459
1,860
52,101
3,174
429
2,207
47,346
(1) Refer to the for definitions of these environmental indicators.
(2) These include consumption by Surface Operations’ facilities located in these areas.
(3)
Water usage data for Obuasi and Sadiola for the years 2009-2012 have been adjusted to exclude domestic water consumption from the calculation.
(4) Sold effective 30 June 2014.
(5) Water imports at Sunrise Dam for 2011-2014 were corrected to exclude an internal recirculation stream from the tailings facility.
(6) Excludes pre-production water use at Tropicana.
(7) Tropicana began production in the fourth quarter of 2013.
111
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Environmental performance (1) (continued)
GHG emissions (000t CO2e)
No. of reportable environmental incidents
South Africa
Vaal River (3)
West Wits (3)
Mine Waste Solutions
Continental Africa
Ghana
Iduapriem
Obuasi
Guinea
Siguiri
Mali
Sadiola
Yatela
Namibia
Navachab (4)
Tanzania
Geita
Australasia
Australia
Sunrise Dam
Tropicana (5)
See footnotes overleaf
2015
2014
2013
1
1
0
0
2
0
2
0
0
0
0
0
0
0
1
0
0
1
4
0
1
0
0
0
0
3
0
0
0
3
0
0
3
5
1
3
0
0
0
0
1
2
0
2
2012
10
3
0
7
5
2
1
0
1
0
0
1
1
1
2011
12
10
2
0
14
0
14
0
0
0
0
0
1
1
2015
2,960
1,436
1,331
193
663
95
79
158
104
9
218
336
116
220
2014
2,981
1,360
1,420
201
796
74
198
150
118
18
238
359
135
224
2013
(2) 3,025
1,415
1,445
165
969
2012
(2) 3,009
(2) 1,482
(2) 1,473
(2) 54
978
2011
(2) 2,930
(2) 1,498
(2) 1,432
–
938
89
187
184
148
46
31
253
130
130
113
199
175
156
38
42
246
174
123
51
94
197
177
161
52
43
254
125
125
112
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Environmental performance (1) (continued)
Americas
Argentina
Cerro Vanguardia
Brazil
AGA Mineração
Serra Grande
United States
Cripple Creek & Victor
AngloGold Ashanti
GHG emissions (000t CO2e)
No. of reportable environmental incidents
2015
375
115
41
15
2014
449
118
36
14
2013
399
119
32
15
2012
389
111
29
14
2011
348
103
25
13
204
4,334
281
4,584
233
4,567
235
4,501
207
4,343
2015
2014
2013
2012
2011
1
0
1
0
0
4
0
0
0
0
0
5
0
0
0
0
0
10
0
0
0
0
0
16
0
0
0
0
0
27
(1) Refer to the for definitions of these environmental indicators.
(2)
In South Africa, the Eskom grid emission factor was revised by the National Business Initiative in consultation with Eskom, leading to a change in the electricity-related emissions reported for 2012 and 2013. The figure reported
for 2012 included Nufcor.
(3) These include consumption by Surface Operations’ facilities located in these areas.
(4) Sold effective 30 June 2014.
(5) Tropicana began production in the fourth quarter of 2013.
113
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Social performance (1)
Community investment ($000)
South Africa (2)
Continental Africa
Ghana
Iduapriem
Obuasi
Corporate office
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%) and Yatela (40%)
Namibia
Navachab (3)
Tanzania
Geita
DRC
Kibali (45%) (4)
Mongbwalu (86.22%)
Australasia
Australia
Sunrise Dam
Tropicana (4)
See footnotes overleaf
114
2015
6,288
6,008
134
204
–
501
42
241
2014
8,073
3,933
2013
8,391
2012
7,700
2011
3,670
13,279
13,341
13,502
148
208
–
220
81
175
44
302
1,197
–
465
2,007
70
1,326
1,083
56
126
59
198
572
201
513
2,704
47
772
48
429
54
3,757
1,973
5,489
4,834
4,302
1,129
344
344
–
654
430
247
247
–
4,140
584
463
301
125
976
2,935
464
1,299
3,335
276
464
276
INTEGRATED REPORT 2015 FIVE-YEAR STATISTICS: BY OPERATION continued
Operational, financial and sustainability statistics
Social performance (1) (continued)
Community investment ($000)
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande (5)
Colombia
United States
Cripple Creek & Victor
Sub-total
Equity-accounted investments
AngloGold Ashanti
2015
4,159
2014
3,659
2013
5,761
2012
5,148
2011
4,939
712
1,223
1,096
1,520
2,067
1,574
142
1,154
577
16,799
(1,571)
15,228
712
153
993
578
15,912
(1,113)
14,799
1,297
472
1,905
991
27,894
(5,358)
22,536
813
719
1,188
908
26,653
(1,746)
24,907
791
268
1,210
603
22,387
(1,775)
20,612
(1) Refer to the for the definition of this social indicator.
(2) Community investment at the South African operations is aggregated and is overseen via the corporate entity and includes corporate community investment.
(3) Sold effective 30 June 2014.
(4) Kibali and Tropicana began production in the fourth quarter of 2013.
(5) AngloGold Ashanti’s holding increased to 100% (from 50%) from 1 July 2012.
115
INTEGRATED REPORT 2015 MINERAL RESOURCE AND ORE RESERVE – SUMMARY
The AngloGold Ashanti Mineral Resource and Ore Reserve are reported in
accordance with the minimum standards described by the Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (JORC Code, 2012 Edition), and also conform to the standards
set out in the South African Code for the Reporting of Exploration Results,
Mineral Resources and Mineral Reserves (The SAMREC Code, 2007
edition and amended July 2009).
The Mineral Resource is inclusive of the Ore
Reserve component unless otherwise stated.
In complying with revisions to the JORC
code the changes to AngloGold Ashanti’s
Mineral Resource and Ore Reserve have been
reviewed and it was concluded that, excluding
the disposal of CC&V, none of the changes
are material to the overall valuation of the
company. AngloGold Ashanti has therefore
once again resolved not to provide the detailed
reporting as defined in Table 1 of the code.
The company will however continue to provide
the high level of detail it has in previous years
in order to comply with the transparency
requirements of the code.
AngloGold Ashanti strives to actively create
value by growing its major asset – the Mineral
Resource and Ore Reserve. This drive is
based on active, well-defined brownfields
and greenfields exploration programmes,
innovation in both geological modelling and
mine planning and continual optimisation of
the asset portfolio.
“ AngloGold Ashanti strives
to actively create value by
growing its major asset –
the Mineral Resource and
Ore Reserve.”
GOLD PRICE
The following local prices of gold were used as a basis for estimation in the December 2015 declaration:
Gold price
as at 31 December 2015
2015 Ore Reserve
2015 Mineral Resource
Local prices of gold
South Africa
Australia
US$/oz
ZAR/kg
AUD/oz
1,100
1,400
431,000
450,000
1,436
1,704
Brazil
BRL/oz
3,360
3,501
Argentina
ARS/oz
10,143
10,788
The JORC and SAMREC Codes require the use of reasonable economic assumptions. These include long-range commodity price forecasts which
are prepared in-house.
116
INTEGRATED REPORT 2015
MINERAL RESOURCE AND ORE RESERVE – SUMMARY continued
MINERAL RESOURCE
The total Mineral Resource decreased
from 232.0Moz as at 31 December 2014
to 207.8Moz as at 31 December 2015.
A gross annual decrease of 7.2Moz
occurred before depletion and disposals,
while the net decrease after allowing
for depletion and disposals is 24.2Moz.
Changes in economic assumptions
from December 2014 to December
2015 resulted in 13.4Moz decrease to
the Mineral Resource, while exploration
and modelling resulted in an increase
of 6.6Moz. Depletion from the Mineral
Resource for the year totalled 4.9Moz
and the sales of CC&V and Mongbwalu
totalled 12.3Moz. The Mineral Resource
has been estimated at a gold price of
US$1,400/oz (2014: US$1,600/oz).
207.8Moz
Mineral Resource (as at 31 December 2015)
Mineral Resource
Mineral Resource as at 31 December 2014
Disposal
Depletion
Additions
Obuasi
Sunrise Dam
CC&V
Mongbwalu
Sub-total
Sub-total
Historic data recapture and re-estimation of the Mineral Resource in critical areas.
Increased gold price on the back of a weakening Australian dollar and additions from underground
reverse circulation grade-control drilling
Other
Additions less than 0.5Moz
Sub-total
Reductions
Kopanang
Cost increases and some economic write-off of Mineral Resource
Moab Khotsong
Cost increases and some economic write-off of Mineral Resource
Iduapriem
Geita
La Colosa
Other
The gold price reductions were partially countered by new Mineral Resource additions
Increased costs and a reduced price
The reduced gold price and the introduction of a revised Mineral Resource classification system
Reductions less than 0.5Moz
Mineral Resource as at 31 December 2015
Rounding of numbers may result in computational discrepancies.
Moz
232.0
(9.8)
(2.5)
219.7
(4.9)
214.8
0.7
0.6
1.5
217.6
(0.5)
(0.8)
(0.8)
(1.8)
(4.7)
(1.2)
207.8
117
INTEGRATED REPORT 2015
MINERAL RESOURCE AND ORE RESERVE – SUMMARY continued
ORE RESERVE
The AngloGold Ashanti Ore Reserve
reduced from 57.5Moz as at 31 December
2014 to 51.7Moz as at 31 December
2015. This gross annual decrease of
5.8Moz includes depletion of 4.3Moz and
the sale of CC&V 3.7Moz. The balance of
2.2Moz additions in Ore Reserve, results
from changes in economic assumptions
between 2014 and 2015 which resulted in
additions of 0.1Moz to the Ore Reserve,
while exploration and modelling changes
resulted in further additions of 1.6Moz.
Other factors resulted in a further 0.5Moz
increase. The Ore Reserve has been
estimated using a gold price of
US$1,100/oz (2014: US$1,100/oz).
51.7Moz
Ore Reserve (as at 31 December 2015)
Ore Reserve
Ore Reserve as at 31 December 2014
Disposal
Depletion
Additions
Iduapriem
Obuasi
Other
Reductions
Kopanang
Other
CC&V
Sub-total
Sub-total
Exploration success and mine optimisation as well as the addition of new areas such as the spent
heap leach and Block 5
Updated feasibility study and introduction of a revised mining method for narrow lodes and inclusion
of Cote D’or
Additions less than 0.3Moz
Sub-total
Revised mining strategy in order to maximise the cash flow.
Reductions less than 0.3Moz
Ore Reserve as at 31 December 2015
Rounding of numbers may result in computational discrepancies.
Moz
57.5
(3.7)
53.8
(4.3)
49.5
0.8
0.5
1.4
52.2
(0.4)
(0.1)
51.7
118
INTEGRATED REPORT 2015
MINERAL RESOURCE AND ORE RESERVE – SUMMARY continued
BY-PRODUCTS
Several by-products will be recovered as
a result of the exploitation of our gold Ore
Reserve. The by-product Ore Reserve
includes 53,700t of uranium oxide from
the South African operations, 0.29Mt of
sulphur from Brazil and 26.0Moz of silver
from Argentina.
COMPETENT PERSONS
The information in this report relating to
exploration results, Mineral Resources
and Ore Reserves is based on information
compiled by or under the supervision of the
Competent Persons as defined in the JORC or
SAMREC Codes. All Competent Persons are
employed by AngloGold Ashanti, unless stated
otherwise, and have sufficient experience
relevant to the style of mineralisation and
type of deposit under consideration and to
the activity which they are undertaking. The
Competent Persons consent to the inclusion
of exploration results, Mineral Resource and
Ore Reserve information in this report, in the
form and context in which it appears. The
legal tenure of each operation and project
has been verified to the satisfaction of the
accountable Competent Person and is
detailed in the .
Over more than a decade, the company has
developed and implemented a rigorous system
of internal and external reviews aimed at
providing assurance in respect of Ore Reserve
and Mineral Resource estimates. The following
operations were subject to an external review
in line with the policy that each operation
project will be reviewed by an independent
third party on average once every three years:
• Mineral Resource and Ore Reserve
at Tropicana
• Mineral Resource and Ore Reserve at
AGA Mineração: Cuiabá and Lamego
• Mineral Resource and Ore Reserve at Geita
• Mineral Resource and Ore Reserve at Siguiri
The external reviews were conducted by
the following companies: Golder Associates
(Tropicana), Optiro (AGA Mineração: Cuiabá
and Lamego; Geita and Siguiri). Certificates of
sign-off have been received from all companies
conducting the external reviews to state that
the Mineral Resource and/or Ore Reserve
comply with the JORC Code and the
SAMREC Code.
Numerous internal Mineral Resource and Ore
Reserve process reviews were completed by
suitably qualified Competent Persons from
within AngloGold Ashanti. A documented
chain of responsibility exists from the
Competent Persons at the operations to the
company’s Mineral Resource and Ore Reserve
Steering Committee.
Accordingly, the Chairman of the Mineral
Resource and Ore Reserve Steering
Committee, VA Chamberlain, MSc (Mining
Engineering), BSc (Hons) (Geology), MGSSA,
FAusIMM, assumes responsibility for the
Mineral Resource and Ore Reserve processes
for AngloGold Ashanti and is satisfied that
the Competent Persons have fulfilled their
responsibilities. VA Chamberlain has 28 years’
experience in exploration and mining and is
employed full-time by AngloGold Ashanti and
can be contacted at the following address:
76 Rahima Moosa Street, Newtown, 2001,
South Africa.
A detailed breakdown of the
Mineral Resource and Ore Reserve
and backup detail is provided on
the AngloGold Ashanti website
(www.anglogoldashanti.com) and
in , available at
www.aga-reports.com.
119
INTEGRATED REPORT 2015 MINERAL RESOURCE AND ORE RESERVE – SUMMARY continued
Mineral Resource by region inclusive of Ore Reserve (attributable)
Gold
as at 31 December 2015
South Africa
Continental Africa
Australasia
Americas
AngloGold Ashanti total
Rounding of figures may result in computational discrepancies.
Category
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Tonnes
million
135.26
924.28
45.98
1,105.52
35.85
436.26
166.29
638.40
32.96
90.04
23.09
146.09
47.31
1,044.65
904.38
1,996.35
251.39
2,495.24
1,139.74
3,886.37
120
2.32
0.85
2.97
2.93
2.84
1.23
2.11
2.46
1.97
3.17
0.95
0.72
0.90
2.07
1.71
1.47
1.66
Grade
g/t
2.21
1.93
Contained gold
Tonnes
299.25
1,787.99
10.45
480.50
Inclusive Mineral Resource by region
as at 31 December 2015
(attributable) (%)
• South Africa
• Continental Africa
• Australasia
• Americas
40
28
4
28
Moz
9.62
57.49
15.45
82.55
0.98
41.65
15.69
58.32
1.31
6.12
1.82
9.25
4.82
31.94
20.86
57.63
16.73
2,567.74
30.56
1,295.50
488.04
1,814.10
40.66
190.41
56.76
287.83
149.96
993.47
648.91
1,792.34
520.43
4,267.37
137.20
1,674.21
53.83
6,462.01
207.76
207.8Moz
Total Mineral Resource (inclusive)
INTEGRATED REPORT 2015
MINERAL RESOURCE AND ORE RESERVE – SUMMARY continued
Mineral Resource by region exclusive of Ore Reserve (attributable)
Gold
as at 31 December 2015
South Africa
Continental Africa
Australasia
Americas
AngloGold Ashanti total
Rounding of figures may result in computational discrepancies.
Grade
g/t
14.81
3.26
16.44
4.52
3.15
3.29
2.98
3.16
0.77
2.04
2.46
2.05
3.15
0.89
0.70
0.84
5.77
1.65
1.29
1.59
Contained gold
Tonnes
202.48
831.77
251.16
1,285.41
6.80
712.48
483.58
1,202.86
5.40
129.72
56.76
191.88
99.20
917.06
632.91
1,649.16
313.88
2,591.03
1,424.41
Moz
6.51
26.74
8.08
41.33
0.22
22.91
15.55
38.67
0.17
4.17
1.82
6.17
3.19
29.48
20.35
53.02
10.09
83.30
45.80
4,329.31
139.19
Category
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Tonnes
million
13.67
255.20
15.28
284.15
2.16
216.40
162.41
380.97
7.01
63.61
23.09
93.71
31.52
1,031.00
900.97
1,963.49
54.37
1,566.21
1,101.74
2,722.32
121
Exclusive Mineral Resource by region
as at 31 December 2015
(attributable) (%)
• South Africa
• Continental Africa
• Australasia
• Americas
30
28
4
38
139.2Moz
Total Mineral Resource (exclusive)
INTEGRATED REPORT 2015
MINERAL RESOURCE AND ORE RESERVE – SUMMARY continued
Ore Reserve by region exclusive of Ore Reserve (attributable)
Gold
as at 31 December 2015
South Africa
Continental Africa
Australasia
Americas
AngloGold Ashanti total
Rounding of figures may result in computational discrepancies.
Category
Proved
Probable
Total
Proved
Probable
Total
Proved
Probable
Total
Proved
Probable
Total
Proved
Probable
Total
Tonnes
million
123.91
698.29
822.20
32.36
218.92
251.27
25.95
26.43
52.38
12.22
16.04
28.26
194.45
959.67
1,154.12
122
Grade
g/t
0.62
1.05
0.99
0.70
2.63
2.38
1.36
2.30
1.83
2.32
4.45
3.53
0.84
1.51
1.39
Contained gold
Tonnes
76.85
736.09
812.93
22.52
576.65
599.17
35.27
60.69
95.96
28.42
71.28
99.70
163.05
1,444.71
1,607.76
Moz
2.47
23.67
26.14
0.72
18.54
19.26
1.13
1.95
3.09
0.91
2.29
3.21
5.24
46.45
51.69
Ore Reserve by region
as at 31 December 2015
(attributable) (%)
• South Africa
• Continental Africa
• Australasia
• Americas
51
37
6
6
51.7Moz
Total Ore Reserve
INTEGRATED REPORT 2015
PLANNING FOR THE FUTURE
Our planning for the future
encompasses the following:
Exploration
This is aimed at ensuring that we have
available a pipeline of Mineral Resources
and Ore Reserves, both at our existing
operations and at new projects, with
the potential to be developed into future
mining operations to ensure the long-term
sustainability of our business.
Technology and innovation
We invest in the skills and technology
necessary to enable us to access and
exploit, safely and cost efficiently, the
extensive deep-level Mineral Resources
which will ensure the long-term future of
our South African operations.
Closure and rehabilitation
Given that mining operations exploit a
non-renewable resource, we include
planning for mine closure right from
the start of a mining project. Our
closure planning takes into account
our environmental remediation and
our estimate of social obligations that
follow on from the cessation of mining
operations and closure. All our mining
operations and projects have closure
plans in place.
EXPLORATION
Our exploration programme covers greenfields
and brownfields projects. In 2015, exploration
and evaluation costs totalled $140m, including
equity-accounted joint ventures. Our exploration
is focused on creating significant value by
providing long-term optionality and improving
the portfolio quality. The objectives are met by:
• Greenfields exploration, which aims to
discover large, high-value Mineral Resources
that will eventually lead to the development of
new gold mines. Our greenfields exploration
team is recognised as the industry’s most
successful in Mineral Resource discovery
(by SNL*, a leading industry research group).
The team has a proven track record that
includes the discovery of world-class ore
bodies at La Colosa, Gramalote, Tropicana,
and Nuevo Chaquiro. These discoveries are
attributed to our committed and professional
team of geoscientists working on a portfolio
of highly prospective and rigorously prioritised
greenfields ground holdings.
• Brownfields exploration, which focuses
on delivering value through incremental
additions to our Ore Reserve in existing
mines as well as new discoveries in
defined areas around existing operations.
Brownfields exploration actively drives
the creation of value by growing our
Mineral Resource and Ore Reserve, our
major assets. Our brownfields exploration
programme is based on innovative
geological modelling and mine planning, and
continual optimisation of our asset portfolio.
123
* SNL 2014 Strategies for Gold Reserves Replacement, best for the period studied from 1999-2013, page 247
INTEGRATED REPORT 2015 PLANNING FOR THE FUTURE continued
1 Americas regional review
Greenfields exploration
Our greenfields exploration programme has
over 12,000km2 of highly-prospective ground
in two countries – Australia and Colombia –
and also maintains small ground positions in
Argentina and Brazil. Expenditure was $22.4m
in 2015, including over 50,000m of diamond,
reverse circulation and aircore drilling.
This programme also included focused
generative activities in countries with
operational synergies.
In Western Australia, exploration activities
at the Tropicana project, in joint venture
with Independence Group NL (AngloGold
Ashanti 70%), progressed well through the
year with more than 33,000m of aircore
drilling, 8,500m of reverse circulation drilling
and 2,200m of diamond drilling completed.
Excellent initial results were returned from the
Madras prospect approximately 25km south
of Tropicana. Significant drill intersections in
shallow oxide material included 15m @ 5.08g/t
Au from 45m, 25m @ 2.47g/t Au from 35m,
and 17m @ 4.22g/t Au from 64m#. To date,
the Madras mineralisation has been found to
be restricted in size and only well developed in
the weathered (saprolite) zone.
Airborne geophysical surveys were completed
over several new projects wholly owned by
AngloGold Ashanti including Strawbridge,
Pindabunna, and Neds Creek in Western
Australia. Target generation and first phase
field work is continuing on these projects.
In New South Wales at the Mullion Project
(wholly-owned), 2,500m of diamond drilling
were completed to follow up bedrock targets
identified from geophysical surveys conducted
in 2014. Although significant favourable
alteration was intersected, only low tenor
results were returned.
In Colombia, the Quebradona project was
transferred to the projects team early in the
year. Greenfields exploration then focused on
the Guintar project west of Medellin where
mapping outlined an extensive alteration
system in sediments overlying a dioritic
porphyry intrusion with associated copper-
gold and epithermal gold occurrences. An
eight-hole drilling programme commenced
in the third quarter, with 3,000m completed
by year end. Drilling intersected hornfelsed
sedimentary rocks and breccia zones with
significant pyrrhotite and pyrite in fractures,
stringers and fine stockworks returning
anomalous geochemical values.
In Brazil, exploration was undertaken early in
the year on the Graben project, in joint venture
with Graben Mineração (AngloGold Ashanti
earning 80%). A programme of 1,800m of
diamond drilling was completed. Results did
not meet expectations and the joint venture was
terminated. Project generation work in other
areas in Brazil progressed for the rest of the year.
Brownfields exploration
Brownfields exploration was carried out in
10 countries, in and around AngloGold Ashanti
operations. Expenditure in 2015 totalled $63m,
including equity-accounted joint ventures. A total
of 469,818m of diamond and reverse circulation
drilling was completed during the year.
South Africa: Four surface holes were
drilled during the year – three are ongoing
at Mponeng’s Western Ultra Deep Levels
(WUDLs) and one was completed at the Vaal
River operations – achieving a total drilled
depth of 4,966m.
Argentina: At Cerro Vanguardia, drilling
programmes for Mineral Resource expansion
and exploration continued during the year.
The focus was on delineating vein extensions
along strike and at depth. Mapping, trenching
and channel sampling continued as part of the
reconnaissance programme to identify new
drilling targets.
Brazil: In the Iron Quadrangle, the underground
drilling programmes for Mineral Resource
development continued at both the Cuiabá and
Lamego mines. At Cuiabá, additional drilling
was directed at satellite mineralisation that
may be accessible from existing infrastructure.
Surface drilling programmes at Córrego do Sítio
continued to infill and expand the oxide Mineral
Resource while the underground programme
added extensions to several ore bodies,
including the Inga ore body. See the Americas
regional review1.
Colombia: Exploration in the Gramalote area
continued, with programmes in and around
the Gramalote Central deposit. Limited drilling
programmes were also conducted within the
joint venture area.
At La Colosa, the emphasis on other
project-related drilling continued, supporting
geotechnical, hydrological and site
infrastructure studies.
The Quebradona project development drilling
programme continued during the year. The
programme focus was directed at infill drilling
in the higher grade, upper part of the deposit.
# See the first quarter 2015 report on exploration activities at www.anglogoldashanti.com for full compliant details.
124
INTEGRATED REPORT 2015 PLANNING FOR THE FUTURE continued
Tanzania: Drilling focused on Mineral
Resource delineation, testing both strike
and dip extent of current deposits as well as
confirming underground potential (Matandani
North, Geita Hill East and Star & Comet).
Mineral Resource conversion infill-drilling
programmes took place at Nyankanga Cut
7, Nyankanga Cut 8 and Star & Comet Cut
3. Pre-resource drilling programmes were
undertaken to test targets at Star & Comet
Deeps, Matandani North and Geita Hill
East Deeps. Vertical seismic profiling and
metallurgical test work drilling was conducted
at Nyankanga, Geita Hill and Matandani
respectively. In all, 50 holes (15,273m) were
completed. A 2D ground seismic survey was
conducted along two sectional lines across
Nyankanga and Geita Hill to confirm the
suitability of the geology and mineralisation in
these deposits for 3D seismic modelling.
Guinea: A total of 46,007m was drilled at
Siguiri during the year across a range of
programmes including fresh rock projects
at several pits and oxide reconnaissance
drilling. In all, reverse circulation drilling totalled
35,080m plus limited (1,077m) aircore drilling,
with the remainder being diamond drilling or
RCDD drilling. The reverse circulation drilling
included 4,416m of advanced grade control
drilling in a test block within the Kami pit.
Ghana: No exploration was conducted
at Obuasi. Exploration at Iduapriem
during the first half of the year focused on
Mineral Resource infill drilling at Block 5 to
upgrade the Inferred Mineral Resource to
Indicated. Reconnaissance exploration (soil
geochemistry, mapping and limited trenching)
was also completed over the Bankyem, Mile 5
and Ajopa northwest targets. In the latter half
of the year, drilling was initiated at Bankyem,
Block 4S and Mile 5. A total of 6,924m drilling
was completed in 2015.
Democratic Republic of the Congo: Total
diamond drilling for near-mine exploration at
Kibali during 2015 totalled 15,883m, with an
additional 1,760m drilled on regional projects.
The exploration aims to fulfil three main
objectives: Mineral Resource – Ore Reserve
replacement, the discovery of potential oxide
displacement ounces, and identification and
development of new targets.
Mali: A total of 13,110m of exploration reverse
circulation drilling focused on the Sadiola North
area and Tabakoto in 2015.
Australia: Exploration activities in 2015
were primarily on the Mineral Resource
expansion programme at Tropicana with
a drilling campaign comprising more than
23,000m of aircore, 27,000m of reverse
circulation and 38,000m of diamond drilling
completed. Drilling was focused on testing for
extensions to mineralisation in the Tropicana,
Swizzler, Havana and Havana South areas.
An additional block of 3D seismic data was
acquired at the southern end of the mine area
to aid further exploration.
125
At Sunrise Dam, underground Mineral
Resource development drilling continued
throughout the year. Exploration diamond
drilling focused primarily on extending the
Inferred Mineral Resource as per the mine
plan and underground grade control reverse
circulation drilling continued to focus on
converting the Indicated Mineral Resource into
a mineable grade control block model for use
in stope development designs. A start was
made on the development of key diamond
drilling platforms, which will be used over the
life of mine to drill test exploration targets along
the strike length of the deposit.
A lake aircore drilling programme of just over
9,000m of drilling was completed at the
Kraken Project, situated over the western
extents of the Lake Carey playa salt lake
system, approximately 10km east of Sunrise
Dam. Several target areas were drill tested for
gold mineralisation. All targets are beneath lake
cover sequences.
More detail on the company’s exploration
work for the year is included under the
Exploration updates on the website at
www.anglogoldashanti.com.
INTEGRATED REPORT 2015 PLANNING FOR THE FUTURE continued
TECHNOLOGY AND INNOVATION
Towards a new mining method for
ultra-deep South African mines
The AngloGold Ashanti Technology Innovation
Consortium continued to make headway,
specifically in the development of key
technologies and the methodology employed
in achieving the project’s core objective to
“Safely Mine, All the Gold, Only the Gold,
All the Time” from our deep-level underground
mines in South Africa.
The latest generation reef-boring machine, the
MK IV was successfully deployed at TauTona’s
lower Carbon Leader Reef (CLR) shaft pillar.
During 2015, reef-boring cycle times improved
from 159 hours per hole to 82 hours per hole,
which compares favourably to the 72 hours
per hole targeted.
The ultra-high-strength backfill product has
also been successfully developed to the
stage where it can be pumped over the
required distance of 1,000m, a prerequisite
for a full mining cycle. This demonstrates
progress on the work done that seeks to
establish the basis for a safe, automated,
deep-level underground mining method at
AngloGold Ashanti.
Reef boring
Test site
Since deployment and commissioning of the
MK II machine in 2013, a total of 56 holes
has been drilled to date. Having completed
drilling of the available block of ground, this
machine was decommissioned in the third
quarter of 2015. The MK IV reef-boring
machine was successfully installed and
commissioned in September 2015 at the
extended test site at TauTona, and had
drilled seven holes by year-end.
Commissioning began later in the year, having
been delayed by constraints resulting from
the use of a contained transport system. This
system consists of a collector bin, pipe and
the material carrying car. The collector bin has
since been redesigned, modified and returned
underground for further trials, which are
expected to begin in the first half of 2016.
Prototype site: medium-range machines
Three MK III machines were commissioned
at the prototype sites at TauTona and
a total of 81 holes were drilled in 2015.
However, technical, work management and
operational functionalities posed challenges
which affected the machines’ performance,
as a result of which industrial engineers
126
INTEGRATED REPORT 2015 PLANNING FOR THE FUTURE continued
conducted time and motion studies to identify
shortcomings and ways to improve the
performance of these machines.
Drilling at Moab Khotsong’s prototype site,
where five holes were drilled within that
specific block of ground, was suspended
owing to the machine’s incompatibility with
that block – the geological complexity of
the block of ground, where drilling took
place, hampered progress with only a low
percentage extraction rate achieved. The
machine was relocated to TauTona for drilling
in the Ventersdorp Contact Reef (VCR) plane.
Geological drilling continued to determine
the best way forward for either mechanical or
conventional extraction at the sites identified
at Moab Khotsong.
In the last quarter of 2015, the MK III
machines only managed to drill 13 holes
and were stopped as, owing to ground
conditions, rock engineering recommended
that drilling be suspended for safety reasons.
This resulted in an unplanned machine move
and it was necessary to convert the machine
to raise-bore mode. The opportunity was
taken to install a new mechanical anchoring
system to speed up the set-up times.
In addition, to further improve the machine’s
performance, a rod handling system has
been fitted to the machine to assist with
the installation and removal of drill rods,
scheduled for drilling at the VCR site for the
first quarter of 2016. Other MK III machines
are expected to be similarly equipped, in line
with the refurbishment programme.
Prototype site: small-range machines
The geotechnical complexity of the block
of ground hampered drilling and only a low
percentage extraction was achieved due to the
undulating reef plane. Once it was established
that the stage gate of 80% extraction could
not be achieved, drilling was discontinued.
The HPE machine was first deployed at Great
Noligwa’s C-reef in 2014. A soft footwall
composition associated with this reef plane
caused the reamer to continuously fall out
of the hole. This led to a decision to test the
technology on the Vaal Reef where footwall
conditions are more uniform. The machine was
moved to Kopanang at the beginning of 2015.
Unfortunately, due to an undulation of the Vaal
Reef plane in the block drilled, it was found to
be uneconomical to ream the holes as the set
target could not be achieved, as stated above.
The Sandvik machine modifications were
completed and it was delivered to Savuka.
Drilling is expected to begin in the first half
of 2016.
Mechanical development
This development opens and equips the
tunnels in which the reef-boring machines
drill. However, the methodology for the
opening up of mining grids for continuous
reef boring remained a significant technical
challenge in 2015. As a result, mechanical
development was put on hold while
alternative development options are
investigated. There have been encouraging
results on the technical viability of creating
development ends using non-explosive
rock-breaking techniques. A product called
NONEX has been applied to development
at TauTona and to date 135m have been
developed with an average daily advance
of 1.1m. In addition, the Brokk drilling rig
was commissioned successfully for the
development of flat reef drives.
Ultra high-strength backfill
Surface trials to reach a pumping distance of
up to 1,000m were successful at a product
temperature ranging between 30°C and
35°C. This temperature range simulated the
underground product temperature range.
A tailings drying plant was successfully
constructed and commissioned on
surface at TauTona and a VCR plant
was successfully constructed on 68
level. Commissioning has begun and the
“ Surface trials to reach a
pumping distance of up to
1,000m were successful
at a product temperature
ranging between 30°C
and 35°C.”
automation process will be completed in the
first quarter of 2016.
The Savuka plant was successfully trialled
by RULA, the company assisting with design
and manufacturing. Construction will begin
underground in the first quarter of 2016.
Geological drilling
Despite delays experienced during the year,
drilling was conducted in the last quarter
of the year aimed at resolving the accuracy
and deflection constraints by testing different
stabiliser configurations. A total of five wet
holes were drilled and plotted, and final
analysis is expected to be reported on at the
end of the first quarter 2016.
The new fit-for-purpose Bohrmeister drill rig
is due to be delivered and commissioned for
drilling in the first quarter of 2016.
127
INTEGRATED REPORT 2015 PLANNING FOR THE FUTURE continued
clearly identified in closure plans, as these guide
the definition of applicable options.
liabilities is undertaken annually and these
liabilities are presented in the table overleaf.
Though site-specific requirements vary, our
approach to rehabilitation is governed by
our land use and biodiversity management
standards. These standards include legal
compliance as a minimum. Concurrent
rehabilitation is undertaken where feasible,
balanced against the need to avoid limiting
access to resources in the future. We
also undertake research into rehabilitation
techniques, in conjunction with universities
in several of the countries in which we
operate. Where possible, knowledge of
local plant species accumulated in the
course of rehabilitation work is shared
with local communities and academic
institutions. This sharing of knowledge helps
to build relationships with local scientists,
demonstrates our positive contribution to
local development and scientific knowledge,
and assists governments which are then
able to base their biodiversity regulations and
management on the latest scientific data.
Remediation obligations
and provisions
The company’s long-term environmental
remediation obligations include
decommissioning and restoration liabilities
relating to past operations. These obligations
are based on an operation’s Environmental
Management Plan and the relevant regulatory
requirements. An assessment of closure
Provisions for remediation costs are made
when there is a present obligation, when it
is probable that expenditure on remediation
work will be required and when the cost
can be estimated within a reasonable range
of possible outcomes. These costs are
based on information currently available,
the technology expected to be available
at the time of the clean-up, the expected
time-frame for remediation, laws and
regulations presently or virtually certain to
be enacted, and previous experience of
remediation. Provision for restoration and
decommissioning costs is made at the
present value of the expenditures expected
to settle the obligation using estimated
cash flows based on current prices and
discounted at a pre-tax rate that reflects
current market assessments of the time
value of money.
The decline in the discounted total group
rehabilitation obligation to $683m at the
end of 2015, from $851m at the end of
2014, was a consequence of a number of
factors. These included most notably an
increase in the group discount rate used in
the calculation of the obligation, changes
in the timing of the future cash outflows
relating to the obligation, as well as the sale
of CC&V. The group discount rate increased
as a result of increases in longer-term
government yield rates.
REHABILITATION AND CLOSURE
All mines eventually exhaust their economically
viable resources and mining operations
cease. At AngloGold Ashanti, planning for
mine closure is included from the inception
of a project at exploration stage. Responsible
closure planning follows a holistic approach,
taking into account all aspects of pre-
operational planning, operational activities and
post-closure activity.
The approach for many of our older mines is to
incorporate closure considerations into existing
operational plans as far as possible, to reduce
operating and final closure costs and to mitigate
the socio-economic impacts of closure. To
support this goal, we apply a comprehensive
closure planning management standard and
guidelines that offer practical assistance to
operations on how to apply the standard. The
purpose of the closure management standard
is to facilitate the design and implementation of
closure plans to the extent possible during the
life of a mine.
In the case of new operations, planning for
closure begins at mine conception and is
incorporated in mine design – in essence,
new mines are designed with closure in mind.
Social considerations are also addressed, as
communities close to the mine may be affected
by closure. The closure planning standard
provides for continuing community engagement
and the development, where possible, of
alternative livelihoods to mitigate the impact
of closure. The objectives for overall closure,
including social and workforce aspects, are
128
INTEGRATED REPORT 2015 PLANNING FOR THE FUTURE continued
Rehabilitation liabilities per operation ($m)
Operation
Restoration Decommissioning
2015
South Africa
Great Noligwa
Moab Khotsong (1)
Kopanang
TauTona (2)
Mponeng
Legacy projects
– Vaal River
– West Wits
– Other
Mine Waste Solutions
Nufcor SA
Continental Africa
Ghana
Iduapriem
Obuasi (3)
Mpasatia (Bibiani pit)
Guinea
Siguiri
Mali (4)
Morila
Sadiola
Yatela
DRC
Mongbwalu
Kibali (4)
Tanzania
Geita
17.9
–
7.3
1.2
4.0
2.0
–
–
0.3
3.1
-
260.8
33.0
151.0
–
31.8
2.4
14.1
4.1
–
–
77.4
–
30.2
12.4
10.0
3.9
4.7
0.3
–
15.1
0.8
164.3
8.5
58.8
–
29.4
6.2
12.5
10.1
–
7.0
Total
95.3
–
37.5
13.6
14.0
5.9
4.7
0.3
0.3
18.2
0.8
425.1
41.5
209.8
–
61.2
8.6
26.6
14.2
–
7.0
2014
Total
83.5
2.5
23.2
12.1
13.0
2.8
7.4
3.5
0.4
17.9
0.7
463.2
43.1
217.3
10.0
75.2
5.0
26.1
16.2
4.6
6.9
Australasia
Australia
Sunrise Dam
Tropicana
Americas
Argentina
Cerro Vanguardia
Brazil
AngloGold Ashanti
Mineração
Serra Grande
United States of
America
Cripple Creek & Victor
and other
Colombia
La Colosa
Other
Less equity-accounted
investments included
above (4)
Total discounted estimate
24.4
31.8
56.2
58.8
129
Operation
Restoration Decommissioning
2015
32.7
20.1
12.6
99.9
43.1
42.6
9.1
28.7
10.2
18.5
37.6
17.2
15.4
5.0
Total
61.4
30.3
31.1
137.5
60.3
58.0
14.1
2014
Total
65.5
32.4
33.1
272.8
57.5
75.4
21.4
0.5
–
0.5
112.8
4.6
6.0
417.3
(6.4)
–
–
308.0
(35.8)
4.6
6.0
725.3
(42.2)
5.7
4.0
889.0
(38.0)
410.9
272.2
683.1
851.0
(1) Includes Great Noligwa for 2015.
(2) Includes Savuka.
(3) Includes Mpasatia (Bibiani pit) for 2015.
(4) The equity-accounted investments refer to the Mali assets and Kibali in the DRC.
INTEGRATED REPORT 2015 ONE-YEAR OUTLOOK
The forecast provided for 2016 takes into account current market
conditions, the outlook for commodity prices and the outlook for global
economic changes (1)
Production
Total cash costs
All-in sustaining costs (2)
Capital expenditure
Non-sustaining capital
Sustaining capital
For the year ended
31 Dec 2016
000oz
3,600 – 3,800
$/oz
$/oz
$m
$m
$m
680 – 720
900 – 960
790 – 850
120 – 140
670 – 710
Based on the following assumptions: R15.0/$, A$0.70/$, BRL4.0/$; AP14.90/$; Brent crude at
$35 per barrel.
(1)
Production and cost estimates do not take into account the impacts of any unforeseen operational disruptions,
changes to projects or changes to the asset portfolio and/or operating mines.
(2) Group level all-in sustaining cost guidance includes corporate costs.
Other illustrative estimates
$m
Depreciation and amortisation
Corporate and marketing costs
Expensed exploration and evaluation costs
(including equity-accounted investments)
Interest and finance costs (income statement)
Interest and finance costs (cash flow)
Outlook 2016
820
75 – 90
130 – 150
190
175
130
INTEGRATED REPORT 2015 ACCOUNTABILITY
ACCOUNTABILITY
ENSURING ACCOUNTABILITY
to all our stakeholders
In this section, we review our performance and philosophy
regarding corporate governance, remuneration and
assurance of the information presented.
131
INTEGRATED REPORT 2015 CORPORATE GOVERNANCE
Good corporate governance is
an integral part of the group’s
sustainability. Adherence to the
standards and recommendations
set out in the King III Report
and other relevant laws and
regulations is vital to achieving
our strategic priorities.
Corporate governance forms an overarching
framework in which the business operates and
AngloGold Ashanti is committed to promoting
good governance and ethics within all areas
of the business. To achieve this, the group
continues to enhance and align its governance
structures, policies and procedures to support
its operating environment and strategy.
Application of King III principles
Application of and adherence to the King
III principles continues to be a key focus.
AngloGold Ashanti reviewed its application of
the King III principles against the JSE Listings
Requirements through the Governance
Assessment Instrument tool of the Institute of
Directors in Southern Africa and is satisfied that
it has applied the King III principles. A detailed
analysis of the company’s compliance with the
King Code of Governance for South Africa,
dated March 2016, is available on the company’s
website, www.anglogoldashanti.com.
GOVERNANCE REVIEW
The company is governed by a unitary
board of directors, the composition of
which promotes the balance of power
and of authority and precludes any one
director from dominating decision-making.
The board is supported by its committees
and has delegated certain functions to
these committees without abdicating any
of its own responsibilities. This process of
formal delegation involves approved and
documented terms of reference, which are
reviewed when required, or at least annually.
It is the responsibility of the board to exercise
oversight of governance throughout the
organisation. We acknowledge that sound
governance principles and practices underpin
the creation of value and the sustainability
of the business, and are thus crucial to the
achievement of the business objectives.
AngloGold Ashanti also recognises that
strategy, performance, sustainability and risk
are inseparable. Our values-driven culture and
code of ethics underpins AngloGold Ashanti’s
governance structures and processes,
committing the company to high standards of
business integrity and ethics in all its activities.
The governance of the company is guided
by internal policies and external laws, rules,
regulations and best practice guidelines,
details of which are available on the
company’s website at www.anglogoldashanti.
com/sustainability. Governance structures
and processes are reviewed regularly
and adapted to accommodate internal
developments and to reflect national and
international best practices.
THE BOARD OF DIRECTORS
Role of the board
The overriding role of the board is to ensure
the long-term sustainability and success
of the business, for the mutual benefit of
all stakeholders. Its overall role is one of
strategic leadership. This includes the setting,
monitoring and review of strategic targets and
objectives, the approval of capital expenditure,
acquisitions and disposals, and oversight
of governance, internal controls and risk
management. The duties, responsibilities
and powers of the board, the delegation of
authority and matters reserved for the board’s
authority are all set out in the board charter,
which is available on the company’s website,
www.anglogoldashanti.com.
Composition of the board
of directors
Board membership at year-end comprised
of eleven directors, nine independent non-
executive directors and two executive
directors. The independence of non-executive
directors is contingent upon an evaluation as
prescribed by King III.
The board appointed Wiseman Nkuhlu as
Deputy Chairman in March 2014. The principal
role of the Deputy Chairman is to act when the
“ We acknowledge that sound
governance principles and
practices underpin the creation
of value and the sustainability
of the business, and are thus
crucial to the achievement of
the business objectives.”
board Chairman is not present or is unable to
perform his duties for any other reason, and
to serve as liaison between the non-executive
directors and the board Chairman.
The group’s Chief Executive Officer, Srinivasan
Venkatakrishnan, is responsible for the
execution of the company’s strategy and
reports to the board. He chairs the Executive
Committee that comprises nine members, and
is responsible for the day-to-day management
of the group’s affairs. The committee’s
work is supported by country and regional
management teams as well as by group
corporate functions.
The group has a Chief Financial Officer. This
position is held by Christine Ramon. As
required by the JSE Listings Requirements,
the Audit and Risk Committee, annually
considers and expresses its satisfaction at
the level of expertise and experience of the
Chief Financial Officer.
132
INTEGRATED REPORT 2015 CORPORATE GOVERNANCE continued
1 The Board
2 Executive Management
The Audit and Risk Committee concluded that
Christine Ramon, together with other members
of the financial management team, had
effectively and efficiently managed the group’s
financial affairs during the period under review
as detailed in the Chief Financial Officer’s
report, which is included in the .
Appointment and rotation
of directors
Several factors including the requirements
of relevant legislation, best practice
recommendations, qualifications and skills
of prospective board members and the
requirements of the Directors’ Fit and Proper
Standards of the company, as well as regional
demographics are considered in appointing
board members. New directors are appointed
pursuant to the recommendations of the
Nominations Committee, which conducts
a rigorous assessment of the credentials of
each candidate. All director appointments are
subject to shareholder approval at the annual
general meeting immediately following the date
of their appointment.
In terms of the company’s Memorandum of
Incorporation (MOI), one third of the directors
are required to retire at each annual general
meeting and, if they are eligible and available
for re-election, will be put forward for re-
election by shareholders. Those directors
eligible for re-election at the forthcoming
annual general meeting are: Rhidwaan Gasant,
Michael Kirkwood, Srinivisan Venkatakrishnan
and Dave Hodgson. See the .
Directors’ interests
Directors are required to declare their interests
annually and to disclose any conflicts of
interest, if and when they arise, to determine
whether there are any that conflict with their
duties at AngloGold Ashanti. Once a conflict
has been disclosed, it is managed appropriately
by the board. A Declaration of Interest Register
is updated by the Company Secretary and
circulated at each board meeting.
Directors’ dealings in shares
and closed periods
The Company Secretary informs the board and
AngloGold Ashanti employees of its closed
periods, during which trade in AngloGold
Ashanti shares by directors, senior divisional
management and by restricted participants
in the company’s various share incentive
schemes is prohibited.
All directors’ dealings require the prior
approval of the Chairman and the Company
Secretary who retains a record of all such
share dealings.
Independence of directors
Company secretary
Determination of director independence
is guided by King III, the Companies Act,
the requirements of the JSE and the NYSE
independence test, the company’s internal policy
on independence, as well as best practice. All
directors were found to be independent in terms
of character and judgement.
Board and committee evaluations
The performance of the board is evaluated
annually and includes:
• an assessment of the performance and
effectiveness of the board as a whole and
that of individual directors
• an evaluation of each committee by
members of the committee as well as
an evaluation of the chairperson of
the committee
• the Company Secretary
An external board evaluation is conducted
every third year and for the other two years,
the Company Secretary facilitates the process.
The results were discussed by the
Nominations Committee and the board
in February 2016 and an action plan was
developed for areas of refinement.
The Company Secretary, Maria Sanz Perez,
is responsible for developing, implementing
and maintaining effective processes and
procedures to support the board and its
committees in the discharge of their duties and
responsibilities. She advises the board and
individual directors on their fiduciary duties and
on corporate governance requirements and
best practices.
In line with the JSE Listings Requirements,
the board evaluated the qualifications,
competence and experience of the
Company Secretary in December 2015
and was satisfied that Maria Sanz Perez is
qualified to serve as Company Secretary.
The board also confirmed the Company
Secretary’s independence and that the
Company Secretary maintains an arms-length
relationship with the board when carrying out
her duties. The Company Secretary is not a
director of the company and has no personal
associations with any of the directors. Maria
Sanz Perez’s qualifications and experience
can be viewed in the sections entitled The
Board (1) and Executive Management (2) in
this report and on the website,
www.anglogoldashanti.com.
133
INTEGRATED REPORT 2015 CORPORATE GOVERNANCE continued
1 Remuneration Report
BOARD COMMITTEES
Audit and Risk Committee
Social, Ethics and Sustainability
Committee
Remuneration and Human
Resources Committee
Nominations Committee
Brief summary of responsibilities:
Brief summary of responsibilities:
Brief summary of responsibilities:
Brief summary of responsibilities:
The Audit and Risk Committee oversees the
integrity of financial reporting, the existence
of proper internal controls, the integrity of
the and risk management processes
and assesses the company’s continuing
ability to operate as a going concern.
The committee assists the board with the
oversight of IT governance, risk management
and the implementation of a group ethics and
regulatory compliance programme. It ensures
the company has qualified external auditors
and internal auditors.
More detailed information on the
committee’s achievements is available in the
committee chairman’s report in the .
The latest approved Audit and Risk
Committee Terms of Reference, containing
detailed information regarding the
committee’s responsibilities and mandate,
are available on the company’s website,
www.anglogoldashanti.com/en/About-Us/
corporategovernance/Pages/default.aspx
The key responsibility of the Social, Ethics
and Sustainability Committee is to assist
the board in monitoring matters relating to
safety, health, the environment and ethical
conduct and to ensure that the company
develops and behaves as a responsible
corporate citizen. The committee ensures
that the sustainability strategy positions
the company as a leader in mining and
that sustainability objectives are effectively
integrated into the business.
More information on the committee’s
achievements is available in a podcast
interview with this committee’s chairman,
which can be accessed in the ,
which is available at www.aga-reports.
com/14/sdr /#messages/chairperson.
The latest approved Social, Ethics and
Sustainability Committee Terms of Reference,
containing detailed information regarding the
committee’s responsibilities and mandate, are
available on the company’s website,
www.anglogoldashanti.com/en/sustainability/
policies/Pages/default.aspx.
This Remuneration and Human Resources
Committee assists the board in ensuring
that AngloGold Ashanti’s remuneration
policies are in its long-term interests.
The committee ensures that in terms
of the decisions made, non-executive
directors, executive directors, senior
management and all other employees are
fairly and responsibly remunerated and that
shareholder value is delivered. It assists the
board in the development of the company’s
human resources environment.
More information on the achievements
of the committee is available in the
Remuneration Report 1.
The latest approved Remuneration and Human
Resources Committee Terms of Reference,
containing detailed information regarding the
committee’s responsibilities and mandate, are
available on the company’s website,
www.anglogoldashanti.com/en/About-Us/
corporate governance/Pages/default.aspx
The Nominations Committee consists of
three independent non-executive directors
and is chaired by the Chairman of the
board. The committee develops processes
to identify, assess and recommend board
candidates for appointment as executive
and non-executive directors, including
the Chairman, Deputy Chairman, Chief
Executive Officer and the Company
Secretary, and at the same time gives
full consideration to succession planning
and leadership in the group. It reviews
board composition, including the balance
of skills, experience and independence.
The committee develops and implements
the annual evaluation processes, whether
internal or external.
The latest approved Nominations Committee
Terms of Reference, containing detailed
information regarding the committee’s
responsibilities, mandate and policy on
appointments to the board are available on the
company’s website, www.anglogoldashanti.
com/en/About-Us/corporategovernance/
Pages/default.aspx
134
INTEGRATED REPORT 2015 CORPORATE GOVERNANCE continued
Investment Committee
Brief summary of responsibilities:
The Investment Committee assesses
individual capital projects and investment
and divestment opportunities to ensure
that investments, divestments and
financing proposals are in accordance with
AngloGold Ashanti’s primary objective of
creating shareholder value on a sustainable
long-term basis.
The latest approved Investment Committee
Terms of Reference, containing detailed
information regarding the committee’s
responsibilities and mandate, are available
on the company’s website,
www.anglogoldashanti.com/en/sustainability/
policies/Pages/default.aspx.
BOARD AND COMMITTEE MEETING ATTENDANCE
The board meets at least six times a year, with additional meetings arranged when necessary. AngloGold Ashanti’s corporate strategies are
discussed and agreed with executive management in an annual strategy session.
The directors’ attendance at the board and committee meetings during 2015 is disclosed in the table below:
Audit and Risk
Committee
Investment
Committee
Board
Remuneration
and Human
Resources
Committee
Social,
Ethics and
Sustainability
Committee
Nomination
Committee
10
10
10
10
10
10
10
10
10
10
10
10
6
n/a
6
6
n/a
n/a
6
6
6
6
n/a
n/a
5
n/a
4
5
5
n/a
n/a
5
5
n/a
n/a
5
4
4
4
n/a
n/a
4
4
n/a
n/a
4
n/a
n/a
5
5
n/a
n/a
5
5
n/a
n/a
n/a
n/a
5
n/a
4
4
4
n/a
n/a
n/a
4
n/a
n/a
n/a
n/a
n/a
Number of meetings in 2015
SM Pityana
LW Nkuhlu
R Gasant
DL Hodgson
NP January-Bardill
MJ Kirkwood
A Garner
RJ Ruston
M Richter
S Venkatakrishnan
KC Ramon
135
INTEGRATED REPORT 2015 CORPORATE GOVERNANCE continued
ETHICAL LEADERSHIP AND
RESPONSIBLE CORPORATE
CITIZEN
The board ensures at all times that the
company is, and is seen to be, a responsible
corporate citizen. The board not only
considers the financial performance of the
company, but also strives to enhance and
invest in the economic life of the communities
in which it operates, society in general and
the environment. The Executive Committee
is responsible for ensuring these values
are adhered to. The board’s Social, Ethics
and Sustainability Committee ensures the
application of these principles.
Our Code has been translated into four
languages and is available on the corporate
website, www.anglogoldashanti.com, the
intranet and DVD.
AngloGold Ashanti holds all employees,
directors and officers accountable for
complying with Our Code and policies, in
addition to applicable laws, regulations,
standards and contractual obligations in the
countries in which AngloGold Ashanti does
business. Failure to live up to Our Code may
result in disciplinary action being taken, up to
and including dismissal. No employee, director
or officer will be disciplined or otherwise
victimised for raising a concern in good faith.
The Code of Business Principles and Ethics
(Our Code), launched in 2010, is the defining
document on AngloGold Ashanti’s values and
ethics. The board and management recognise
the importance of ethical behaviour by all
employees, directors and related parties at
all times as we strive to generate competitive
shareholder returns and create value for all
stakeholders. The principles of King III facilitate
the monitoring of the company’s performance
from an ethical perspective.
We have promoted our whistle-blowing
communication channels that include hotlines,
text messaging, email and web facilities, which
are administered by a third party. Use of these
facilities is promoted by means of posters at
all locations. Employees, directors, officers
and external parties may use the hotlines,
anonymously if they wish, to report concerns.
All concerns are carefully investigated and,
wherever possible, feedback is provided to the
person raising the concern upon request.
Our Code provides a framework and sets
requirements for the implementation of key
corporate policies and guidelines. Among other
areas, it addresses fraud, bribery and corruption,
conflict of interests, gifts, hospitality and
sponsorships, use of company assets, privacy
and confidentiality, disclosures and insider trading.
Sustainability is an integral part of how
AngloGold Ashanti does business. Our
commitment to achieving operational excellence
in a safe and responsible way benefits all
our stakeholders, including our employees,
government and the communities in which we
operate. Our efficient use of resources, together
with the provision of a safe and healthy working
environment, contributes to the sustainability of
our business and the environment.
• investigations into high-risk issues,
including certain whistleblowing and related
investigations
LEGAL, ETHICAL AND
REGULATORY COMPLIANCE
The group’s geographical spread makes its
legal and regulatory environment diverse
and complex. Given the critical importance
of compliance in building a sustainable
business, group compliance plays an essential
role in co-ordinating compliance with laws
and regulations, standards and contractual
obligations and in assisting and advising the
board and management on designing and
implementing appropriate compliance policies
and procedures.
During 2015, group compliance activities
aimed at enhancing the company’s
governance. Key among these activities were:
• the continued global roll-out of awareness
training on Our Code and anti-bribery and
anti-corruption measures by means of
both online training, DVD training for those
without computer access, and “in person”
training on key risk areas
• continued development of a compliance
programme aligned with “best practice”
principles identified by, among others, bodies
responsible for the prosecution of violations of
key extra-territorial legislation such as the US
Foreign Corrupt Practices Act, and that are
adaptable at an operational level to enhance
the effectiveness of the compliance framework
• continued implementation of a risk-based
third party due-diligence process for both
suppliers and agents/intermediaries
• development and utilisation of a
methodology for continuous improvement
in compliance and a review of compliance
policies as well as the use of compliance
metrics as part of our combined assurance
audit programme
• specific training on various anti-bribery
and anti-corruption issues, including
conflicts of interest and payments to
government officials
• revision and issuance of new policies,
procedures and guidance, including a
revised anti-bribery and anti-corruption
policy, related guidance and a revised
conflicts of interest policy
• regular assessment of the automated
registers for group gifts, hospitality and
sponsorship and conflicts of interest
• enhanced communication on compliance
initiatives across the group through, among
other channels, bi-monthly newsletters and
other corporate communications
• additional efforts to provide automated
access to track and monitor compliance
with laws and regulations, including self-
certification processes and legal registers,
by country.
136
INTEGRATED REPORT 2015 CORPORATE GOVERNANCE continued
External and internal standards and voluntary codes
AngloGold Ashanti adheres strictly to legislative and regulatory compliance, including several
external and voluntary standards which are listed below.
The company is a member of and a signatory to the:
• International Council on Mining and Metals (ICMM)
• Principles of the United Nations Global Compact (UNGC)
• Extractive Industries Transparency Initiative (EITI)
• United Nations Guiding Principles on Business and Human Rights
• Voluntary Principles on Security and Human Rights (VPSHR)
• World Gold Council’s Conflict-Free Gold Standard (WGC CFGS)
The company is committed to complying with the following standards:
• Universal Declaration on Human Rights
• International Bill of Human Rights
• International Labour Organization (ILO) standards
In addition, we have group policies and charters to which we adhere. Increasingly, customers
and consumers want assurance that the gold they are purchasing has not contributed to
conflict or human rights abuse. This has resulted in a number of measures being introduced
by industry-related organisations to prevent gold and other commodities from being used to
fund conflict and other violations of human rights.
AngloGold Ashanti’s shares are registered with the Securities and Exchange Commission
(SEC) in the United States and therefore the company is subject to the various laws
regarding securities that are applicable in that country.
South African Employment Equity
Act 55 of 1998
In compliance with Section 21 of the
Employment Equity Act 55 of 1998, the
company is obliged to file with the Department
of Labour, the employment equity statistics
for its South African workforce. A report was
filed with the Department of Labour on 10
December 2015, covering the period 1 August
2013 to 31 July 2015. A copy of the report is
available on the AngloGold Ashanti website,
www.anglogoldashanti.com/sustainability, in the
section entitled “Employment Equity Reports”.
Governance – supply
chain management and
procurement policies
Supply chain management is about more
than just procuring the right product, at the
right time and in the right quantities. Effective
supply chain management, undertaken
with integrity and in line with our values and
governance principles, can add value to our
business by improving efficiency, relationships
and reputation and, ultimately, can affect our
long-term sustainability. As a global company
operating on most of the world’s continents,
responsible management of the supply chain
is an increasingly important ethical and human
rights consideration for our business. External
ratings agencies and customers are ever more
aware of the implications and importance of
ethical conduct in the supply chain.
Responsible supply chain management has
the potential to add value to communities,
local governments and society as a whole,
and particularly so in developing countries.
We have adopted a cross-functional
approach to supply chain management
to ensure best practice while complying
with international human rights and labour
standards and ensuring the economic
participation of local stakeholders.
137
INTEGRATED REPORT 2015 REMUNERATION AND HUMAN RESOURCES COMMITTEE
Chairman’s Letter
DEAR SHAREHOLDERS
In the opinion of the Remuneration
and Human Resources Committee
(Remco), AngloGold Ashanti’s
leadership team acquitted itself
well in one of the most challenging
years for the industry in memory,
one in which the gold price ground
lower for the third consecutive year.
Gold averaged $1,160/oz in 2015, down 8%
from the previous year and a full 30% lower
than the average recorded in 2012, the peak
of the cycle. You will be aware that at the
end of 2014 the team set an ambitious target
of achieving a raft of ‘self-help’ measures
during the course of 2015. The principal aim
of these was to deleverage the balance sheet
using internally generated cash, to continue
driving down operating and corporate costs,
as well as to optimise the portfolio of assets.
The deleveraging was imperative given the
very high cost of equity financing, continued
uncertainty in the gold price, and our own view
that we needed urgently to strengthen our
balance sheet, without diluting shareholders,
and – crucially – to reduce the annual interest
burden of around $250m.
These challenging goals were met with
understandable scepticism, but I am very
gratified to report delivery on almost all of the
objectives set. Looking at the fundamental
operating performance, total cash costs in
2015 at $712/oz were 9% lower than the
previous year, while corporate costs fell by an
impressive 15%, taking us back, in nominal
terms no less, to levels last seen in 2006.
Exploration costs were 8% down year-on-
year to $132m as we continued to focus our
expenditure on higher-potential areas, and
sharper capital allocation pulled our capital
expenditure figure down 29% to $857m. All of
this together left the important all-in sustaining
cost figure at $910/oz, down 11% from the
previous year. We also met market guidance,
(adjusted to take account of discontinued
operations), on all metrics.
In June, we concluded the sale of CC&V to
Newmont Mining Corp. for $819m plus a
net smelter royalty on future underground
production. While selling a core asset is
never easy, we were pleased that – despite a
depressed market for gold mining equities –
we received full value for this transaction. Only
days after receiving the proceeds, we applied
them to buy back the rump of our highest
cost bond, reducing by $779m the seven-
year, 8.5% notes with a principal of $1.25bn.
This decisive act reduces our annual interest
burden by around $60m. Prevailing market
conditions hampered the search for joint
venture partners for certain of our Colombian
assets, but that process will resume when the
macroeconomic environment improves.
Despite the operational successes achieved,
safety remains a key area that we must improve
on. While there were improvements in the all-
injury frequency rate, the broadest measure of
safety performance, we recorded 11 fatalities
during the year, reversing the positive trend
seen in 2013 and 2014. All but two of these
were in South Africa. Safety is our highest
value and a cornerstone of our operational
performance. To highlight this, the bonuses
of both the CEO and the COO: South Africa
region were penalised for the poor safety
performance. We are investing significant time
and resources in returning to an improving trend
across this most crucial metric.
The beginning of the 2015 year also saw
Obuasi transition fully to ‘limited operations’
mode, following the retrenchment of the
full workforce. Had we not done this when
we did, and kept this loss-making asset
operating, it would have bled more than
$300m from our balance sheet at current
prices. The intention is to redevelop this
operation together with a joint venture
partner, but for the moment this century-old
mine with a world-class, untapped ore body,
will remain idled at a lower cost than seen in
prior years.
Aside from ensuring the alignment of our
remuneration and human resource practices
with the strategic direction of the company,
Remco was involved in the following
additional activities:
138
Michael Kirkwood
Chairman: Remuneration and
Human Resources Committee
INTEGRATED REPORT 2015 REMUNERATION AND HUMAN RESOURCES COMMITTEE continued
Chairman’s Letter
• A strong focus was placed on governance
and reporting, our remuneration policy,
remuneration and integrated reports were
all reviewed and benchmarked by an
independent external governance body, to
further improve the quality and disclosure
requirements.
• A review of the current shortage of shares
available under the company share schemes
and self-help measures to re-design
incentives to better fit the business was a
core part of the year’s focus.
• The CEO was reluctant to take an annual
increase (having not taken an increase for
two consecutive years). However given his
cumulative declining market positioning in
base pay (and therefore total remuneration)
as a result of not taking these increases
for 2014 and 2015, he has indicated that
he will accept the CPI increase offered for
2016 and donate it in full to his personal
scholarship programme at the University
of Witwatersrand, the purpose of which
is to support deserving, financially
underprivileged students registered for
a B.Acc or B.Comm degree. Given that
the CEO waived his cash bonus for 2013,
deferred it to shares in 2014, he was
persuaded to take his cash bonus for 2015.
• Two new non-executive directors were
appointed during the year:
• Ms Maria Richter, who is a lawyer,
investment banker and accomplished,
experienced FTSE 100 non-executive
director who has served on a diverse
range of UK and international boards, and
• Mr Albert Garner who has extensive
experience in capital markets, corporate
finance and mergers and acquisitions
having worked with Lazard Frère & Co.,
LLC for 35 years in various leadership
positions.
• During the year Mike O’Hare the COO of
South Africa region retired after 38 years of
loyal service. Mike was replaced by Chris
Sheppard, a 30-year veteran of South
Africa’s deep underground mining sector,
who joined us in June 2015.
With the ongoing focus on our strategic
priorities, Remco is addressing a concern
that share incentives for our senior leadership
cannot be fully realised as the required share
pool is insufficient to meet share allocation
requirements. The structure of our share
incentive schemes along with the declining
share price in recent years has accelerated the
erosion of the authorised pool of shares more
rapidly than anticipated. This unsustainable
reward structure has led to a substantive
review of share-based incentive and reward
structures that currently exist.
A redesign of the incentive structures is
underway and will include a strong focus on
transparency, simplicity, accountability, and
greater focus and further tightening of the
performance-related measures which we use
to assess and drive the business. Sustainability
has been an area where we have focused
our efforts to create significant measures and
we will focus on more refinement and greater
clarity of metrics. Our stakeholders interest in
sustainability and our environmental focus has
increased and we will be seeking to include
further measurable metrics to address these
focus areas.
We are working with our external consultants on
both our short- and long-term incentive plans,
and are investigating the following changes:
• Short Term Incentive Plan (STIP) – Overall
simplification by the possible removal
of the share component and converting
the scheme to a cash-based bonus
scheme, payable on achievement of set
performance conditions.
• Long Term Incentive Plan (LTIP) – In
response to shareholder suggestions
we are considering extending and
staggering current three-year vesting
periods, to periods longer than three
years, accompanied by clear performance
conditions. We will also take on board
shareholder endorsement around our
planned re-think of the performance metrics,
so as to not place undue reliance on one
metric, i.e. total shareholder return (TSR),
but to consider also including other return
metrics. The basis for allocations would
change from a percentage of remuneration
to a performance-driven award within an
overall cap of 1.25% of the issued share
capital approved in 2015.
In driving this change we are conscious that
balance needs to be applied between both the
down cycles and the up cycles in an industry
where cycle duration can be up to 10 years.
Remco therefore endeavours to take you,
our stakeholders, with us on this journey of
change to implement incentive schemes that
can correctly weather the cycles.
Your Remco has focused on improving the
transparency of information in this report,
recognising that the impending implementation
of King IV may add further enhancements to
disclosure guidelines. We trust the reader will
recognise the enhanced disclosure.
This Remuneration Report covers the period
1 January 2015 to 31 December 2015.
Michael Kirkwood
Chairman: Remuneration and Human
Resources Committee
22 March 2016
139
INTEGRATED REPORT 2015 REMUNERATION REPORT
Throughout this report, the term
‘executive directors’ refers to
the CEO and the CFO, while the
Executive Committee (Exco), which
includes the executive directors and
prescribed officers, is referred to as
the ‘executive management team’.
Remco is responsible for the pay
governance associated with these roles
and will talk to all three categories or
separately highlight individual roles where it
is appropriate.
Remco met four times in 2015 with all
members present. Details of committee
members and meeting attendance can be
found in the Corporate Governance section. 1
PART 1: REMUNERATION POLICY
At AngloGold Ashanti our remuneration policy
is robust and aims to align with AngloGold
Ashanti’s strategic objectives while working
to deliver on both internal and external
stakeholder requirements in line with market
lows and highs. This is accomplished by
means of a governance and application
framework that primarily aims to retain and
where necessary attract employees through
fair, transparent and competitive remuneration.
Key principles of the
remuneration policy
In order to continue to support our
remuneration approach we have a
remuneration policy that is based on the
following key principles:
• Remunerate to drive and reward the
behaviour and performance of our
employees and executives which align
the organisation, shareholder and
employee strategic goals
• Ensure that performance metrics are
demanding, sustainable and cover
all aspects of the business including
both the key financial and non-
financial drivers
• Structure remuneration ensuring
that our values are maintained and
the correct governance frameworks
are applied across our remuneration
decisions and practices
• Apply the appropriate remuneration
benchmarks
• Provide competitive rewards to
attract, motivate and retain highly
skilled executives and staff vital to the
success of the organisation
1 Corporate governance
Remuneration design and pay mix
When determining appropriate remuneration, Remco considers:
1. The potential maximum total remuneration that each member of the executive management
team could earn related to performance
2. External influences, primarily being:
• shareholder views and recommendations associated with executive remuneration
• economic trends
• competitive pressure
• the labour market and the pay-gap between the executive management team and the rest
of the employee population in the company
3. Market benchmarks, choosing appropriate benchmarks in a market with similar attributes
including, complexity, size and geographic spread
Pay mix of the executive management team:
The graphs below provide the pay mix for the Executive Management Team at below expected
performance, threshold, target and maximum performance:
Chief executive officer
(Rm)
Maximum
12
Target
12
Threshold
12
Below threshold
12
5
5
5
5
10
14
30
5
7
23
2
4
15
Base salary
Benefits
BSP Cash bonus
BSP shares
LTIP
Note: For below threshold performance there are no performance rewards.
140
INTEGRATED REPORT 2015
REMUNERATION REPORT continued
Chief financial officer
(Rm)
Maximum
7
Target
7
Threshold
1
1
5
8
15
3
4
11
7
Below threshold
1 1 2
7
7
1
Base salary
Benefits
BSP Cash bonus
BSP shares
LTIP
Note: For below threshold performance there are no performance rewards.
Executive committee
(Rm)
Maximum
Target
Threshold
8
8
8
Below threshold
8
4
4
4
4
5
7
16
2
4
12
1
2
8
Base salary
Benefits
BSP Cash bonus
BSP shares
LTIP
Note: For below threshold performance there are no performance rewards.
141
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
Components of remuneration and their link to strategic objectives
The table below details the remuneration policy for 2016, which is unchanged from 2015, as it relates to the components of remuneration for the executive management team. The table details each
component’s link to the company strategy, objectives, performance measurement and the maximum opportunity associated with each component:
Remuneration element
and link to strategy
Base salary
A competitive salary provided
to executives to ensure that
their experience, contribution
and appropriate market
comparisons are fairly reflected
Pension
Provides a post retirement
benefit aligned to the schemes
in the respective country in
which he or she operates
Medical insurance
Provides medical aid assistance
aligned to the schemes in the
respective country in which he
or she operates
Benefits
Provided to ensure broad
competitiveness in the
respective markets
Operation and objective
Maximum opportunity
Performance measures
• Base salaries are reviewed annually and are effective 1 January
each year
• Executive base salaries are determined by considering their
performance; market conditions against companies with
a similar geographic spread, market complexity, size and
industry; and internal peer comparisons
• The CEO makes recommendations on the rest of the team but
does not make recommendations on his own base salary which
is reviewed by Remco and approved by the board
Executive base salary increases and increases for all
non-bargaining unit employees are closely aligned
where practical and this is informed by inflation,
which has an upward or downward adjustment to
recognise individual performance or to be matched
directly to CPI.
Individual performance on a scale of
1 to 5, measured against specific Key
Performance Indicators (KPIs) are
reviewed by Remco. A CPI increase pool
is approved by Remco annually. In high-
inflation countries, individual increases
may be differentiated according to each
individual’s performance rating. In low-
inflation countries, a flat CPI is applied to
all executives and employees.
• The funds vary depending on jurisdiction and legislation
• Defined benefit funds are not available for new employees in
24.75% of base salary for the CEO and lower
contributions for others, dependent on their scheme
Not applicable
line with company policy
• Provided to all executives through either a percentage of fee
In line with approved policy
Not applicable
contribution, reimbursement or company-provided healthcare
providers
Benefits are provided based on local market trends and can
include items such as life assurance, disability and accidental
death insurance, assistance with tax filing, cash in lieu of untaken
leave (above legislated minimum leave requirements) and
occasional spousal travel as per the executive travel guidelines.
In line with approved policy
Not applicable
142
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
Remuneration element
and link to strategy
Short-term incentive
The short-term incentive is
known as the Bonus Share
Plan (BSP) or Short Term
Incentive Plan (STIP) and is
designed to focus executives
on delivering on the key
priorities for the year by
achieving the defined company
objectives
The performance objectives
are reviewed and selected
annually based on their short
to medium term impact on the
company
The STIP has a deferral
element granted in equity
awards to ensure that the
shareholders and executive
focus remains aligned
Please note the structure of
the STIP is under review.
Operation and objective
Maximum opportunity
Performance measures
STIP metrics are defined annually and weightings are applied
to each of the measures. The metrics are defined against the
objectives that most strongly drive company performance and
are shown below.
Each metric is weighted and has a threshold, target and stretch
definition based on the company budget and the desired stretch
targets for the year.
The STIP is delivered as a cash element and a deferred equity
element which is fully realised after 24 months.
At the end of each financial year, the company and the CEO’s
performances are assessed by Remco and the board against the
defined metrics to determine the award granted.
Stratum III employees and above, who are not on production
bonuses, qualify for participation.
The deferral is intended to be delivered in equity, but Remco
retains the discretion to deliver in cash should there be a
requirement, for example, where the shares available for issue are
below the required amount to satisfy employee allocation needs.
Participation in the STIP is at the discretion of Remco.
CEO:
Maximum award – 200% of base salary
(cash 80% + deferred equity/ cash award 120%)
Target award – 100%
(cash 40% + deferred equity/ cash award 60%)
Threshold award – 50%
(cash 20% + deferred equity/cash award 30%)
Below threshold achievement results in a 0% payment
CFO:
Maximum award – 175%
(cash 70% + deferred equity/cash award 105%)
Target award – 87.5%
(cash 35% + deferred equity/cash award 52.5%)
Threshold award – 43.75%
(cash 17.5% + deferred equity/cash award 26.25%)
Below threshold achievement results in a 0% payment
Exco:
Maximum award – 150%
(cash 60% + deferred equity/cash award 90%)
Target award – 75%
(cash 30% + deferred equity/cash award 45%)
Threshold award – 37.5%
(cash 15% + deferred equity/cash award 22.5%)
Below threshold achievement results in a 0% payment
CEO:
Performance measures:
70% company objectives
30% individual KPIs (as reviewed by
the board)
Both company and individual
performance are assessed over the
financial year
CFO and Exco:
Performance measures:
60% company objectives
40% individual KPIs (as reviewed by
the CEO, Remco and the board)
Both company and individual
performance are assessed over the
financial year.
The company metrics measured are:
• Production
• All-in sustaining costs
• Free cash flow
• Safety, health and environment
• Ore Reserve pre-depletion
• Project delivery/capital expenditure
143
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
Remuneration element
and link to strategy
Co-Investment Plan
The Co-Investment Plan (CIP)
is a retention plan designed to
assist executives to achieve
their minimum shareholding
requirements. This is
accomplished by encouraging
them to invest their cash bonus
in equity which will be matched
by the company in the short to
medium term
Long Term Incentive Plan
The primary intention of the
Long Term Incentive Plan (LTIP)
is to ensure that the medium-
to long-term interests of the
executive and the shareholders
are aligned, providing reward
to the executive and wealth
creation to shareholders when
the strategic performance
drivers are achieved.
The strategic drivers are
used in defining the LTIP
metrics. These are depicted
in the strategy diagram on the
following page.
Please note that the
structure of the LTIP
scheme is under review.
Operation and objective
Maximum opportunity
Performance measures
150% of the equity originally invested over a deferred
24-month period.
Quantum based on STIP achievement
The CIP is offered annually to create shareholdings held by
executives to meet their minimum shareholding requirements
(introduced in 2013). These were implemented to achieve the
alignment of shareholder and executive interests.
The executive invests up to 50% of their net cash bonus in
company shares, after 12- and 24-month periods, the company
then offers an equity match of shares purchased on market,
provided the executive remains in employment and retains the
original investment.
The LTIP metrics are reviewed and defined annually in accordance
with the strategy. (It is important to note that any amendment would
be applied on a go-forward basis to newly allocated awards with no
retrospective metric changes to existing awards.)
CEO:
Range of award: 160 – 250% of base salary
CFO:
Range of award: 140 – 200% of base salary
Weightings are provided to the metrics which must be achieved over
a three-year period.
Exco:
Range of award: 140 – 200% of base salary
The TSR is measured against a carefully selected peer group
of 10 comparators that was recommended by Remco and
approved by the board. The comparator group is retained for
measurement for the full three-year review period.
The score against all relevant measures contributes towards the
percentage of total awards that will vest at the end of the three-
year period.
Only senior management from Stratum IV and above are eligible to
participate in the LTIP.
A share under the LTIP is a fully paid ordinary share in the
capital of the company, subject to performance vesting
restrictions. The dilution may not exceed 5% of the company’s
ordinary share capital.
Participation in the LTIP is at the discretion of Remco.
144
The TSR is calculated by the growth in
capital from purchasing a share in the
company, assuming that the dividends are
reinvested each time they are paid. The
TSR is then used to rank the performance
of the company against its competitors.
The remaining 50% performance
measurements are:
• Operational performance
• Future optionality (measured through
technology innovation and Mineral
Resource and Ore Reserve)
• Development and attraction of people
(measured by the succession cover
ratio and talent retention)
• A safety multiplier applied to the total
score which can either enhance or
detract from the final score by 20%.
The safety multiplier cannot however
increase the maximum pay-out above
the defined caps
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
ALIGNMENT OF STRATEGY, PAY AND PERFORMANCE
BSP metrics:
• Production
• All-in sustaining costs
• Free cash flow
• Project delivery/capital expenditure
LTIP metrics:
• Total shareholder return
• Asset optimisation
• Safety
BSP metrics:
• Production
• All-in sustaining costs
• Free cash flow
• Project delivery/capital expenditure
LTIP metrics:
• Total shareholder return
• Asset optimisation
E S
OUR C O R
O pti m is e o v erh e a d, c o sts a n d
c a pital e x p e n diture
T R A TEGIC FOCU
Im
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ortfolio q
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Supporting
our strategy for
sustainable
cash flow
improvements
and returns
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e
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i
n
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n
c
i
a
l
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b
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Focus on people, safety and sustainability
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BSP metrics:
• Production
• Free cash flow
• Safety
• Environment, health
and community
LTIP metrics:
• Total shareholder
return
• People
• Safety
145
BSP metrics:
• Production
• All-in sustaining costs
• Free cash flow
• Project delivery/capital expenditure
• 2015 Ore Reserve pre-depletion
LTIP metrics:
• Total shareholder return
• Asset optimisation
• Future optionality
BSP metrics:
• Project delivery/capital expenditure
• 2015 Ore Reserve pre-depletion
LTIP metrics:
• Total shareholder return
• Future optionality
In line with AngloGold Ashanti’s strategic
objectives, the STIP and LTIP metrics were
designed to deliver on these key focus areas.
(1) Maintain a strong foundation –
Safety: Improve safety performance and
reduce fatalities;
People: Develop and retain the people
who are the business; and
Sustainability: ensure that the we retain
our social licences to operate
(2) Improve financial flexibility – Being
prudent and proactive in balance sheet
management by improving earnings;
returns and free cash flow; ensuring
liquidity and headroom; and mitigating
refinancing risks
(3) Optimise our cost base – Reduce
direct operating costs, overheads and
indirect spend and optimise annual total
capital spend
(4) Improve portfolio quality – A strong
focus on selecting only key projects that
add value to the portfolio.
(5) Maintain long-term optionality, albeit
at a reasonable cost – Determining an
affordable pace of development against
a project plan that focuses on the
projects critical to the sustainability of
AngloGold Ashanti.
INTEGRATED REPORT 2015
REMUNERATION REPORT continued
Recruitment policy
Termination policy
When recruiting executives, a comparative benchmarking exercise will be done to determine the size,
nature and complexity of the role and also skills availability in the market prior to making a competitive
offer. For new appointments, Remco may compensate for remuneration forfeited from the previous
employer. The intention is to not grant more than the executive would have received in a 12-month
period. However, Remco does have the discretion to compensate higher values if, through a fair value
assessment, it can be demonstrated that the amount forfeited exceeds that granted. Remco will
compensate the amount forfeited through a combination of equity and cash.
The executive management team all have open ended contracts (except where
prescribed retirement ages apply) with termination periods defined in their contracts.
In addition, incentive scheme rules clearly specify termination provisions by termination
category. In the event of a termination, the company has the discretion to allow the
executive to either work out their notice or to pay the base pay for the stipulated notice
period in lieu of notice.
Reason for termination
Voluntary resignation
Dismissal/
termination
for cause
Base salary
Paid over the notice period or as a lump sum No payment
Normal and early retirement, retrenchment and death Mutual separation
Base pay is paid for a defined period based on
cause and local policy as executives have different
employment entities
Paid over the notice period or as a lump
sum
Pension
Medical provisions
Pension contributions for the notice period
will be paid; the lump sum would not include
pension contributions unless contractually
agreed
Where applicable, medical provision for the
notice period will be paid; the lump sum would
not include contributions unless contractually
agreed
No payment
Pension will be paid until such time that
employment ceases
No payment/provision
Medical provision/ payment will be provided until
such time that employment ceases
Benefits
Applicable benefits may continue to be
provided during the notice period but will not
be paid on a lump sum basis
No payment
Benefits will fall away at such time that employment
ceases
Pension contributions for the notice
period will be paid; the lump sum would
not include pension contributions unless
contractually agreed
Where applicable medical provision for the
notice period will be paid; the lump sum
would not include contributions unless
contractually agreed
Applicable benefits may continue to be
provided during the notice period but will
not be paid on a lump sum basis
146
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
Reason for termination (continued)
STIP share awards
Unvested shares lapse
Voluntary resignation
Dismissal/
termination
for cause
All shares lapse (both
vested, un-exercised and
unvested)
Normal and early retirement, retrenchment and death Mutual separation
Pro-rata unvested shares based on the length of
employment from date of offer
Remco determines whether a pro-rata
portion may be granted
BSP cash bonus
Forfeit, no bonus
No bonus
Discretion to pro-rate for period worked (no
matching shares awarded)
Discretion to pro-rate for period worked
(no matching shares awarded)
LTIP
Unvested shares lapse
All shares lapse, (both
vested, un-exercised and
unvested)
Pro-rata unvested shares based on the length of
employment from date of offer by applying the last
two years’ average performance results (death has
no performance criteria applied)
Remco determines whether a pro-rata
portion may be granted (or board in the
case of the executive directors)
CIP
Unallocated matching portion lapses
Forfeit matching portion
of shares
Matching shares based on the length of
employment from date of purchase
Remco determines whether a pro-rata
portion may be granted (or board in the
case of the executive directors)
Minimum shareholding requirements
With effect from March 2013, a minimum shareholding requirement (MSR) was introduced for the executive management team. Remco is of the opinion that share ownership by the executive
management team demonstrates their commitment to the success of the company, and serves to reinforce the alignment between executive and shareholder interests.
The MSR requirement and current achievement requirements are as per the table below:
Within three years of appointment/
from introduction of the MSR
CEO and CFO
100% of net annual base salary
Within six years of appointment/
from introduction of the MSR
200% of net annual base salary
Exco
75% of net annual base salary
150% of net annual base salary
Holding requirement
Indefinite
Indefinite
147
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
For the purpose of the MSR calculation only fully owned and vested awards will count towards
the determination of the MSR.
The following count towards an individual’s MSR:
• JSE shares purchased on the market, either directly or indirectly, for personal reasons including
shares purchased by an executive under the CIP
• Vested matching shares purchased by the company under the CIP
• Vested shares from the company’s share incentive schemes (BSP and LTIP and any historic schemes)
The table below reflects MSR achievements as at 31 December 2015:
Target
achievement date
MSR holding as at
31 December 2015
as % of net base pay
MSR target percentage
as at three-year
achievement date
Executive
Executive directors
S Venkatakrishnan
March 2016
KC Ramon (1)
March 2018
Prescribed officers
I Boninelli
CE Carter
GJ Ehm
March 2016
March 2016
March 2016
RW Largent (2)
March 2016
DC Noko
March 2016
ME Sanz Perez
March 2016
CB Sheppard (3)
March 2019
887%
10%
460%
193%
342%
96%
191%
345%
0%
100%
100%
75%
75%
75%
75%
75%
75%
75%
(1) The executive director joined the company 1 October 2014 and the three-year MSR achievement is only due
in March 2018.
(2) RW Largent required to sell shares in order to pay for tax on vesting in US, resulting in reduced share holding.
The executive joined the company 1 June 2015 and the three-year MSR achievement is only due in March 2019.
(3)
Service contracts
All members of the executive management
team have permanent employment contracts
which entitle them to standard group
benefits as defined by their specific region
and participation in the company’s BSP
and LTIP. All recently updated executive
contracts include details on participation in
the CIP.
Certain South African executives (excluding
the CEO and the CFO for 2015) are paid
offshore remuneration which is detailed
under a separate contract. This reflects
the percentage of their time spent outside
South Africa focused on offshore business
requirements. The payment under this
contract has been extended to 2016 to
include all South African-based executives,
including the CEO and the CFO, increased to
a maximum cap of 20% of base pay following
a review of the amount of time spent outside
South Africa on the offshore responsibilities
of each executive team member. Where
practical, the offshore remuneration is made
pensionable.
Change of control and
notice periods
Executive management team contracts are
reviewed annually and currently continue to
include a change of control provision.
The change of control is subject to the
following triggers:
• The acquisition of all or part of AngloGold
Ashanti, or
• A number of shareholders holding less
than 35% of the company’s issued share
capital consorting to gain a majority of
the board and make management
decisions, and
• Executive management contracts are either
terminated or their role and employment
conditions are curtailed
In the event of a change of control becoming
effective, the executive will in certain
circumstances be subject to both the notice
period and the change of control contract
terms. The notice periods applied per
category of executive and the change of
control periods as at 31 December 2015
were as follows:
Notice
period
(months)
Change
of control
(months)
12
6
6
12
6
6
Executive Committee
member
Chief Executive Officer
Chief Financial Officer
Other executive
management team
members
148
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
Non-executive directors
remuneration policy
The company’s non-executive directors (NEDs)
are paid on the basis of their role and there is
no differentiation by nationality. The policy is
applied using the following principles:
• A board fee is paid for the six annual board
meetings and board committee members
receive annual committee fees for participation.
• Fees are reviewed annually and increases
implemented in July. They are set using a
global comparator group which is derived
from companies with similar size, complexity
and geographic spread
• NEDs receive a travel allowance for travel
outside of their home country for site visits
and board meetings
• NEDs are not eligible to receive any short- or
long-term incentives
Remuneration consultants
Where appropriate, Remco obtains advice
from independent remuneration consultants.
The consultants are employed directly by
Remco and engage directly with them to
ensure independence.
Remco has appointed PwC to provide
specialist, independent remuneration advice on
all forms of executive and non-executive pay.
Mercer performs an independent bespoke
executive survey and their advice is primarily
around salary benchmarking for both executive
and non-executive pay.
PART 2 – REMUNERATION
JANUARY TO DECEMBER 2015
Part 2 of the Remuneration Report explains the
implementation of our remuneration policies
by providing detail of the remuneration paid to
executive and non-executive directors for the
financial year ended 31 December 2015.
Executive pay
of the executive management team received
a CPI increase. The CEO has elected to
donate his increase for 2016 to his personal
scholarship programme at the University of
Witwatersrand, the purpose of which is to
support deserving, financially underprivileged
students registered for a B.Acc or B.Comm
degree at the university. This amounts to a
total donation of R750,000 for 2016.
The year 2015 mirrored 2014 when the gold
price remained low, cost cutting remained
a key imperative and the external market
reflected similar challenges. Each member
On behalf of AngloGold Ashanti, Mercer
conducts an annual bespoke survey of
executive remuneration. For 2015, Remco
reviewed the comparator group against
AngloGold Ashanti to ensure that changes
in the market had not led to variances that
made the current matches inappropriate.
The review consisted of a detailed analysis of
both existing and proposed companies who it
was felt were appropriate for inclusion in the
benchmark. The companies included in the
comparator group were ranked in terms of
a number of criteria selected in areas which
were, it was felt, aligned with AngloGold
Ashanti. The table below summarises the final
comparator group selected and an overview
of the more heavily weighted rankings
considered in their selection:
2014 Comparator benchmark ranking by category (ranked from 1 to 15)
Share
performance
over 5 years
(2009-2014)
Geographic
spread
2014
Turnover
Number of
employees
Market
capital
Total
assets
AngloGold Ashanti Limited
Anglo American Platinum Limited
Barrick Gold Corporation
Gold Fields Limited
Goldcorp Inc.
Harmony Gold Mining Company Limited
Impala Platinum Holdings Limited
Kinross Gold Corporation
Lonmin plc
Mondi Limited
Newmont Mining Corporation
Randgold Resources Limited
Sasol Limited
Sibanye Gold Limited
Yamana Inc.
3
14
4
8
6
11
12
5
15
1
7
9
2
13
10
149
9
6
8
11
5
12
10
14
13
1
7
3
2
–
4
6
5
2
10
7
13
9
8
14
3
4
15
1
11
12
1
3
8
14
12
6
2
15
9
7
10
11
5
4
13
9
4
3
12
2
15
8
11
13
6
5
7
1
14
10
7
9
1
11
2
13
10
6
12
8
3
14
4
15
5
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
During 2015 there were three changes to the
executive management team. These were the
early retirement of Mike O’Hare, the COO for
the South African region on 30 September
2015, the appointment of his replacement Chris
Sheppard on 1 June 2015 and the relocation of
the EVP: Strategy and Business Development,
Charles Carter, from Johannesburg to the
Denver office in the United States. In terms of
remuneration in these three cases, the following
can be noted:
• Mike O’Hare received no additional payments
outside of the standard policies currently
in place and applicable to early retirement.
He therefore received pro-rata STI and LTI
shares and cash in lieu of his BSP share
award. He did not qualify for a 2015 short-
term incentive.
• Chris Sheppard was given a sign-on bonus in
lieu of shares forfeited upon his appointment
by AngloGold Ashanti. The sign-on bonus
consisted of an up-front cash payment of
R1 million with a full claw back in the event
of his leaving in the first 24 months of
employment and R2 million worth of LTIPs
with three-year performance conditions
aligned with those of the 2015 LTIP in place
for all other executives.
• In January 2015, Charles Carter was
relocated to the Denver office and, as a
consequence, he was moved to a US-
remuneration base. He received a relocation
allowance to cover all relocation costs at the
time of the transfer.
150
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
The table below summarises the executive director and prescribed officer remuneration for 2015. It comprises a full overview of all the pay elements
available to the executive management team in the 12-month period ended December 2015.
Appointed
with effect
from
Resigned/
retired with
effect from Salary (1)
Perfor-
mance-
related
Other
benefits and
encashed
payments (2) Pension
leave (3) Sub total
Exercised
BSP share
award
value
Exercised
LTIP share
award
value
Total
SA rands
Total
US dollars (4)
Figures in thousand
Executive directors
S Venkatakrishnan (5)
KC Ramon
Prescribed officers
I Boninelli
CE Carter (6)
GJ Ehm (7)
RW Largent (8)
DC Noko (9)
MP O’ Hare (10)
ME Sanz Perez
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
Full year
Full year
Full year
1 Oct
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
CB Sheppard (11)
2015
1 June
2014
12,000
7,635
2,970
1,728
24,333
–
2,970
1,149
16,119
12,000
7,448
1,750
6,092
5,720
8,640
6,891
7,877
8,038
4,634
1,284
3,066
2,870
4,608
3,043
5,639
7,247
931
219
647
608
254
732
335
293
68
14
13,081
3,267
799
99
10,604
9,297
1,046
11,712
2,627
16,478
10,975
26,553
15,166
8,021
2,814
6,439
32,440
12,503
6,097
5,590
6,615
4,213
5,162
211
648
594
5,388
24,717
1,505
12,463
744
12,090
–
–
–
–
–
–
–
–
–
–
–
–
24,333
16,119
13,081
3,267
10,604
9,297
–
644
1,002
3,422
968
–
–
864
12,576
806
17,928
–
27,555
837
36,699
–
–
–
25,685
12,463
12,090
5,849
19,351
2,641
2,352
24,344
30 Sept
5,879
–
1,204
5,655
12,738
179
56
12,973
7,367
6,071
5,700
3,500
–
3,475
1,509
3,055
3,999
1,552
–
645
606
438
–
109
743
157
12,460
10,514
10,462
1,028
6,518
–
–
–
–
–
–
–
–
–
–
–
–
12,460
10,514
10,462
6,518
–
151
1,905
1,488
1,024
302
830
858
1,906
1,161
1,404
2,544
2,873
2,372
976
1,116
1,016
1,151
823
966
511
–
(1) Salaries are disclosed only for the period from or
to which office is held, and include car allowances
where applicable.
(2) The performance-related payments are calculated on
the year’s financial results.
(3) Includes health care, cash in lieu of dividends, 2014
and 2015 vested CIP match awards, secondment/
relocation allowances, group personal accident,
disability and funeral cover. Surplus leave days
accrued are automatically encashed unless work
requirements allow for carry over.
(4) Values have been converted using the average
annual exchange rate for 2015: R12.7719:$1
(2014: R10.8295:$1; 2013 R9.6231:$1).
(5) Other benefits of S Venkatakrishnan include
encashment due to untaken leave.
(6) Other benefits of CE Carter include a relocation
allowance in lieu of relocation from South Africa to the
Denver, USA office.
(7) GJ Ehm’s 2015 increase was delivered as a lump sum
payment (2.5% adjustment) of R196,927 in January
2016. He received a project bonus in terms of delivering
against the Obuasi Project Charter. The bonus was based
on 60% of pay, of which 40% was paid in 2015 based
on meeting of performance requirements. Other benefits
include a secondment allowance for time spent in Ghana.
(8) Other benefits of RW Largent include the sale of BSP
shares due to US tax requirements.
(9) DC Noko received a project bonus in terms of
delivering against the Obuasi Project Charter. The
bonus was based on 60% of pay, of which 40% was
paid in 2015, based on a meeting of performance
requirements. Other benefits include a secondment
allowance for time spent in Ghana.
(10) MP O’Hare retired as at the end of September, pay is
however disclosed for the full year. Other benefits include
cash in lieu of BSP shares as a result of Mr O’Hare’s
retirement. No additional payments were made.
(11) CB Sheppard commenced employment on
1 June 2015 and as such his pay reflects seven
months of the year. A sign-on bonus was paid
and is reflected under other benefits. The annual
performance bonus was pro-rated.
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
As per 2015 the emolument table on the previous page, the diagram below reflects
executive directors’ actual earnings against their earning potential:
The table below summarises AngloGold Ashanti metrics, their weightings and performance
against these metrics applicable to the BSP during 2015:
Short-term incentive performance outcomes (BSP)
Chief executive officer: actual earnings against target and maximum earnings potential
(Rm)
Maximum
Target
Actual
12
12
12
5
5
5
10
14
30
5
8
7
0
23
Base salary
Benefits
BSP cash bonus
BSP shares
LTIP
Chief financial officer: actual earnings against target and maximum earnings potential
(Rm)
Maximum
Target
Actual
7
7
7
1
1
1
3
5
5
4
0
8
15
11
Base salary
Benefits
BSP cash bonus
BSP shares
LTIP
Target
weighting Achievement
Actual
achievement
against
measures
Threshold
measures
Target
measures
Stretch
measures
18%
15.79%
3,947
3,654
3,798
4,090
22%
22%
1,008
1,204
1,120
1,015
10%
10%
263
(695)
(409)
7
15%
9.66%
Measured against a detailed project plan
10%
10%
Plus 2.2
Plus 0.78
Plus 1.25
Plus 1.57
25%
14.03%
Measured against detailed metrics
100%
81.47%
BSP company
performance
measure 2015
Production
(000oz)
All-in
sustaining
costs ($/oz)
Free cash
flow ($m)
Project
delivery/
capital
expenditure
2015 Ore
Reserve pre-
depletion
(Moz)
Safety,
health and
environment
Total % for
company
performance
152
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
Safety was an important challenge for
AngloGold Ashanti at its South African
operations in 2015. Of the 25% allocated to
safety, health and environment, 15% of the
measure is directly apportioned to safety.
There was a zero achievement against the all
injury frequency rate (AIFR) and the fatal injury
frequency rate (FIFR) which resulted in a low
score on this metric. Nine of the 11 fatalities
took place in the South Africa region and
individual performance scores for the CEO and
the COO: South Africa region were penalised
for the safety results.
Achievement against all-in sustaining costs
and free cash flow were exceptionally good
and led to a high overall rating (consistent
with the 2014 results). This was achieved by
improving the fundamental cost performance
of the business, and a very good operating
performance from our international mines.
Net debt improved by almost $1bn, from
the end of 2014, to the $2.19bn achieved
at the end of 2015. Net debt to adjusted
EBITDA, a measure closely watched by out
lenders and shareholders to determine the
resilience of our balance sheet in prevailing
market conditions, improved from 1.9 times
at the end of 2014 to our target of 1.5 times
at the end of 2015. This was a result of the
successful sale of CC&V, improved cash flow
from the business and a partial take out of the
high-yield bonds.
The calculation below demonstrates how the bonus performance translates into the 2015 cash bonus payment for the CEO and the CFO:
Performance measures
Financial performance targets
Production (000oz)
All-in sustaining costs ($/oz)
Free cash flow ($m)
Project delivery/capital expenditure
2015 Ore Reserve pre-depletion (Moz)
Safety, health and environment
Total % for company performance
Organisational performance weighting
A – Organisational performance weighted outcome
Individual performance results
Actual individual targets and strategic objectives are not disclosed in order to maintain
commercial confidentiality in competitive markets
Individual performance weighting
Maximum performance rating bonus correlation
B – Maximum bonus opportunity based on individual performance
Total % of maximum bonus pay opportunity (A + B)
Maximum bonus opportunity (as % of base pay)
Final bonus result (as % of base pay)
Base pay during the year
Annual bonus
153
Weighting
S Venkatakrishnan
KC Ramon
Outcome
18%
22%
10%
15%
10%
25%
100%
15.79%
22.00%
10.00%
9.66%
10.00%
14.03%
81.47%
x
70.00%
=
57.03%
30.00%
x
75.00%
=
22.50%
79.53%
x
80.00%
=
63.62%
x
15.79%
22.00%
10.00%
9.66%
10.00%
14.03%
81.47%
x
60.00%
=
48.88%
40.00%
x
100.00%
=
40.00%
88.88%
x
70.00%
=
62.22%
x
12,000,000
7,448,000
=
=
7,634,880
4,633,848
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
The BSP company performance over the past
five years has been as follows:
BSP percentage achieved
(for the last five years)
80.82%
81.01%
81.47%
46.10%
6.44%
The LTIP reflects ongoing poor TSR
performance over the three-year period,
providing results that are aligned with
those delivered in 2014 but lower than the
previous year’s:
LTIP percentage achieved
(for the last five years)
70.00%
Performance against the LTIP metrics for the 2013 LTIP awards that vest on 13 March 2016 (for
the period 2013 to 2015) is summarised below:
Performance measure
Performance criteria
Achievement
Total shareholder
return (TSR)
50% absolute ranking
and 50% relative ranking
against seven elected
comparators and the
Gold ETF
Ranked seventh, just
ahead of Kinross Gold
Corporation and Harmony
Gold Mining Company
Limited
Allocation 2013 -
% awarded
0.0%
2011
2012
2013
2014
2015
41.00%
37.20%
37.40%
32.40%
Project delivery
Schedule capital, safety
and quality performance
Vesting outcomes of the
2013 LTIP awards
As the LTIP is a three-year scheme, its metrics
were implemented in 2013, in line with the
company strategy at the time.
Performance measure
Weighting
Total shareholder return (TSR)
Ore Reserve and Mineral Resource
ounce generation pre-depletion
Project delivery
Free cash flow (cash flow from
operations less stay-in-business
and Ore Reserve development
expenditure)
Total achievement
50%
15%
20%
15%
100%
2011
2012
2013
2014
2015
An application for 10 million additional
shares will be made at the 2016 annual
general meeting to meet the share
allocation requirements under both the STI
and the LTI. The Directors’ Report in the
provides details of the total share
allocations and remaining shares available
for future allocations.
Generation of
Mineral Resources
Free cash flow
Between 21Moz and
27Moz (3 x 7-9Moz)
Measured/Indicated
Mineral Resources
Cash flow from operations
less stay-in-business and
Ore Reserve development
expenditure
Total LTIP award percentage
Two projects, Kibali and
Tropicana, were initiated.
Achieved 88% on project
delivery
17.6%
21.5Moz
0.0%
14.8%
32.4%
154
INTEGRATED REPORT 2015 REMUNERATION REPORT continued
Non-executive director fees and allowances
The board elected not to take an increase in 2015, given prevailing market conditions.
The table below summarises the directors’ fees for the period as well as the comparative totals for 2014 and 2013:
US dollars (1)
SM Pityana
AH Garner
LW Nkuhlu
MJ Kirkwood
NP January-Bardill
R Gasant
R Ruston
MDC Richter
DL Hodgson
Total
Fees
Committee
fees
Travel
allowance
2015
332,500
134,000
174,000
130,500
130,500
130,500
134,000
130,500
130,500
72,500
43,500
80,000
75,000
52,500
58,500
56,000
40,000
43,500
6,250
26,250
6,250
36,250
6,250
6,250
36,250
33,750
6,250
Total
411,250
203,750
260,250
241,750
189,250
195,250
226,250
204,250
180,250
Total
2014
Total
2013
430,714
186,767
–
245,074
262,762
187,355
187,635
240,226
–
125,015
–
184,492
266,362
140,538
131,899
251,841
–
–
1,427,000
521,500
163,750
2,112,250
1,678,781
1,161,899
(1) Directors’ compensation is disclosed in US dollars. The amounts reflected are the values calculated using an exchange rate of R12.77:$1
(2014: R10.83:$1; 2013: R9.62:$1).
(2) Fees are disclosed only for the period for which office is held.
Gini co-efficient
that the AngloGold Ashanti had a slightly
Shareholder feedback
AngloGold Ashanti tracks the Gini co-efficient
from a South African perspective to ensure
that the income dispersion between high and
low income earners is not outside market
norms. The analysis is done by PwC as an
independent third party and, based on the
January 2016 analysis, PwC concluded
lower level of income dispersion than that of
South African companies in general as well
as a lower Gini co-efficient when compared
with the South African mining industry. We
have began an investigation into extending
the review of income dispersion across our
international operations.
At the 2015 annual general meeting,
shareholders indicated that they had no
significant concerns, however, they did request
that transparency be shown in terms of the
calculation of bonus metrics. In 2015, greater
effort was taken to explain the calculation and
provide more detail in terms of the metrics to
assist with understanding of the results.
155
INTEGRATED REPORT 2015 APPROVALS AND ASSURANCES
AngloGold Ashanti’s annual
reports for the 2015 financial
year have been approved and
assured as follows:
INTEGRATED REPORT 2015
The Integrated Report for the year ended
31 December 2015, which was recommended
by the Audit and Risk Committee for approval
by the board, was approved by the board of
directors on 22 March 2016.
ANNUAL FINANCIAL
STATEMENTS 2015
The Annual Financial Statements for the year
ended 31 December 2015 were approved
by the board of directors on 22 March 2016.
The financial statements were prepared by
the corporate reporting staff of AngloGold
Ashanti Limited, headed by John Edwin
Staples, the group’s Chief Accounting Officer.
This process was supervised by Christine
Ramon, the group’s Chief Financial Officer,
and Srinivasan Venkatakrishnan, the group’s
Chief Executive Officer.
In accordance with the Companies Act, No.
71 of 2008, as amended, the Annual Financial
Statements for AngloGold Ashanti Limited,
for the year ended 31 December 2015, were
audited by Ernst & Young Inc., the company’s
independent external auditors, whose
unqualified audit report can be found in
the .
MINERAL RESOURCE AND
ORE RESERVE REPORT 2015
The Mineral Resource and Ore Reserve
information as included in the Integrated
Report was approved by the board of directors
on 22 March 2016.
The chairman of the Mineral Resource and
Ore Reserve Steering Committee assumes
responsibility for AngloGold Ashanti’s Mineral
Resource and Ore Reserve processes and
is satisfied that the competent persons have
fulfilled their responsibilities, as reported in
the .
SUSTAINABLE DEVELOPMENT
REPORT 2015
The was approved by the board of
directors on 22 March 2016. Independent
combined reasonable and limited assurance of
this report was provided by Ernst & Young Inc.
156
INTEGRATED REPORT 2015 SHAREHOLDER AND CORPORATE INFORMATION
VALUE
TOWARDS VALUE CREATION
through credible and sustainable business
In this section, we provide information relating to
our shareholders and useful administrative details.
157
INTEGRATED REPORT 2015 SHAREHOLDER INFORMATION
AngloGold Ashanti Limited (Registration
number 1944/017354/06) was incorporated
in the Republic of South Africa in 1944 and
operates under the South African Companies
Act No. 71 of 2008, as amended, with a
primary listing on the JSE in South Africa.
New York (NYSE), in the form of American
Depositary Shares (ADSs), in Australia, in
the form of Clearing House Electronic Sub-
register System (CHESS) Depositary Interests
(CDIs) and in Ghana, in the form of Ghanaian
Depositary Shares (GhDSs).
COMPANY HISTORY – IN BRIEF
AngloGold Limited was founded in June 1998
with the consolidation of the gold mining interests
of Anglo American. The company, AngloGold
Ashanti in its current form, was formed in April
2004 following the business combination of
AngloGold Limited (AngloGold) with Ashanti
Goldfields Company Limited (Ashanti).
SHAREHOLDER DIARY
Financial year end:
31 December
Suite of 2015 annual reports published:
31 March 2016
Annual general meeting:
4 May 2016
STOCK EXCHANGE LISTINGS
AngloGold Ashanti is an independent
gold producer with a diverse spread of
shareholders comprising the world’s largest
financial institutions.
At the end of December 2015, AngloGold
Ashanti had 405,265,315 ordinary shares in
issue and a market capitalisation of $2.88bn
(2014: $3.51bn). As at 22 March 2016, the
date of this report, the market capitalisation
was $5.54bn.
The primary listing of the company’s ordinary
shares is on the JSE in South Africa. Its ordinary
shares are also listed on stock exchanges in
CHANGE OF DETAILS
Shareholders are reminded that the onus is
on them to keep the company, through their
nominated share registrars, apprised of any
change in their postal address and personal
particulars. Similarly, where shareholders
receive dividend payments electronically (EFT),
they should ensure that the banking details
which the share registrars and/or CSDPs have
on file are correct.
ANNUAL REPORTS
The 2015 suite of annual reports is available
on the corporate reporting website,
www.aga-reports.com.
SHAREHOLDINGS
The top 10 shareholders together own 49.59% of the shares in issue. There are five shareholders
with holdings exceeding 5% of the total ordinary issued share capital. A comparison of the top 10
shareholders and their holdings is as follows:
As at 31 December 2015, the top 10 shareholders in AngloGold Ashanti were:
Number of
shares
held
2015
% of total
shares in
issue
2015
Number of
shares
held
2014
Investec Asset Mgt
31,185,069
7.69
28,576,916
Van Eck Global
26,941,752
6.65
24,759,780
Public Investment
Corporation
25,936,314
6.40
31,854,515
Paulson & Co.
25,027,300
6.18
26,205,400
Dimensional Fund Advisors
20,901,571
5.16
13,465,261
BlackRock Investment Mgt
16,979,044
4.19
6 549 138
Franklin Templeton
Investments
16,136,814
3.98
7 796 643
Vanguard Group
12,681,669
3.13
11,611,514
Deutsche Bank
12,674,444
10 BlackRock Fund Advisors
12,462,526
3.13
3.08
8,526,235
9 792 348
1
2
3
4
5
6
7
8
9
% of total
shares in
issue
2014
7.07
6.13
7.88
6.49
3.33
1.62
1.93
2.87
2.11
2.42
The Bank of New York Mellon holds 198,617,090 shares, being a holding of 49.01%
(2014: 194,944,027 shares, a holding of 48.25%), through various custodians in respect of
AngloGold Ashanti’s American Depositary Share Programme on the NYSE.
158
INTEGRATED REPORT 2015
SHAREHOLDER INFORMATION continued
Shareholder spread as at 31 December 2015:
Class of shareholder
Number of
shares
held
% of total
shares in
issue
Number of
shareholders
% of total
shares in
issue
Public shareholders
398,652,822
98.37
8,470
99.89
Non-public
Directors
Strategic holdings
(Government of Ghana)
238,843
6,373,650
0.06
1.57
8
1
0.10
0.01
Total
405,265,315
100.00
8,479
100.00
Stock exchange data
High
(R or $/share)
Low
(R or $/share)
Average
(R or $/share)
Volume
traded
(000)
Ave monthly
volume traded
(000)
JSE
2015
2014
NYSE
2015
2014
Source: Bloomberg
144.92
209.52
12.99
19.53
73.76
88.36
5.68
7.45
113.12
152.27
384,307
280,288
8.95
13.90
950,850
749,358
32,027
23,357
79,238
62,447
DIVIDEND POLICY
Dividends are proposed by, and approved
by the board of directors of AngloGold
Ashanti, based on the company’s financial
performance. It is to be noted that no
dividends have been declared since the first
quarter in 2013. AngloGold Ashanti expects to
resume paying dividends, although there can
be no assurance that dividends will be paid in
the future or as to the particular amounts that
will be paid from year to year. The payment
of future dividends will depend on the board’s
ongoing assessment of AngloGold Ashanti’s
earnings, after providing for long-term growth,
cash/debt resources, compliance with the
solvency and liquidity requirements of the
Companies Act, the amount of reserves
available for a dividend based on the going-
concern assessment, and restrictions (if any)
placed by the conditions of debt facilities,
protection of the investment grade credit rating
and other factors.
Withholding tax
On 1 April 2012, the South African
government imposed a 15% withholding tax
on dividends and other distributions payable to
shareholders.
ANNUAL GENERAL MEETING
Shareholders on the South African register
who have dematerialised their shares in the
company (other than those shareholders whose
shareholding is recorded in their own names in
the sub-register maintained by their CSDP) and
who wish to attend the annual general meeting
to be held on 4 May 2016 in person, will need
to request their CSDP or broker to provide them
with the necessary letter of representation in
terms of the custody agreement entered into
between them and the CSDP or broker.
Voting rights
The Companies Act provides that if voting is
by a show of hands, any person present and
entitled to exercise voting rights has one vote,
irrespective of the number of voting rights that
person would otherwise be entitled to. If voting
is taken by way of poll, any shareholder who is
present at the meeting, whether in person or
by duly appointed proxy, shall have one vote
for every share held.
There are no limitations on the right of
non-South African shareholders to hold or
exercise voting rights attaching to any shares
of the company. CDI holders are not entitled
to vote in person at meetings, but may vote
by way of proxy.
Options granted in terms of the share incentive
scheme do not carry rights to vote.
159
INTEGRATED REPORT 2015 FORWARD-LOOKING STATEMENTS
Certain statements contained in this
document, other than statements of
historical fact, including, without limitation,
those concerning the economic outlook
for the gold mining industry, expectations
regarding gold prices, production, total cash
costs, all-in sustaining costs, all-in costs,
cost savings and other operating results,
return on equity, productivity improvements,
growth prospects and outlook of AngloGold
Ashanti’s operations, individually or in the
aggregate, including the achievement of
project milestones, commencement and
completion of commercial operations of
certain of AngloGold Ashanti’s exploration
and production projects and the completion
of acquisitions, dispositions or joint venture
transactions, AngloGold Ashanti’s liquidity and
capital resources and capital expenditures
and the outcome and consequence of any
potential or pending litigation or regulatory
proceedings or environmental health and
safety issues, are forward-looking statements
regarding AngloGold Ashanti’s operations,
economic performance and financial
condition. These forward-looking statements
or forecasts involve known and unknown
risks, uncertainties and other factors that
may cause AngloGold Ashanti’s actual
results, performance or achievements to
differ materially from the anticipated results,
performance or achievements expressed or
implied in these forward-looking statements.
Although AngloGold Ashanti believes that the
expectations reflected in such forward-looking
statements and forecasts are reasonable,
no assurance can be given that such
expectations will prove to have been correct.
Accordingly, results could differ materially
from those set out in the forward-looking
statements as a result of, among other factors,
changes in economic, social and political and
market conditions, the success of business
and operating initiatives, changes in the
regulatory environment and other government
actions, including environmental approvals,
fluctuations in gold prices and exchange rates,
the outcome of pending or future litigation
proceedings, and business and operational
risk management. For a discussion of such risk
factors, refer to AngloGold Ashanti’s annual
reports on Form 20-F filed with the United
States Securities and Exchange Commission.
These factors are not necessarily all of the
important factors that could cause AngloGold
Ashanti’s actual results to differ materially
from those expressed in any forward-looking
statements. Other unknown or unpredictable
factors could also have material adverse
effects on future results. Consequently, readers
are cautioned not to place undue reliance
on forward-looking statements. AngloGold
Ashanti undertakes no obligation to update
publicly or release any revisions to these
forward-looking statements to reflect events
or circumstances after the date hereof or to
reflect the occurrence of unanticipated events,
except to the extent required by applicable
law. All subsequent written or oral forward-
looking statements attributable to AngloGold
Ashanti or any person acting on its behalf are
qualified by the cautionary statements herein.
This communication may contain certain ‘Non-
GAAP’ financial measures. AngloGold Ashanti
utilises certain Non-GAAP performance
measures and ratios in managing its business.
Non-GAAP financial measures should be
viewed in addition to, and not as an alternative
for, the reported operating results or cash
flow from operations or any other measures
of performance prepared in accordance with
IFRS. In addition, the presentation of these
measures may not be comparable to similarly
titled measures other companies may use.
AngloGold Ashanti posts information that is
important to investors on the main page of its
website at www.anglogoldashanti.com and
under the “Investors” tab on the main page.
This information is updated regularly. Investors
should visit this website to obtain important
information about AngloGold Ashanti.
160
INTEGRATED REPORT 2015 ADMINISTRATION
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
NYSE: AU
ASX: AGG
GhSE (Shares): AGA
GhSE (GhDS): AAD
JSE Sponsor: Deutsche Securities (SA)
Proprietary Limited
Auditors: Ernst & Young Inc.
Offices:
Registered and Corporate
76 Rahima Moosa Street, Newtown 2001,
South Africa
(PO Box 62117, Marshalltown 2107,
South Africa)
Telephone: +27 11 637 6000
Fax: +27 11 637 6624
Australia
Level 13,
St Martins Tower
44 St George’s Terrace
Perth, WA 6000
(PO Box Z5046, Perth WA 6831)
Australia
Telephone: +61 8 9425 4600
Fax: +61 8 9425 4650
Ghana
Gold House
1 Patrice Lumumba Road
(PO Box 2665)
Accra, Ghana
Telephone: +233 302 773400
Fax:+233 302 778155
Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
PO Box K1A 9563 Airport
Accra
Ghana
Telephone: +233 302 229664
Fax: +233 302 229975
ADR Depositary
BNY Mellon (BoNY)
BNY Shareowner Services
PO Box 358016
Pittsburgh, PA 15252-8016
United States of America
Telephone: +1 800 522 6645 (Toll free in USA)
or +1 201 680 6578 (outside USA)
E-mail: shrrelations@mellon.com
Website: www.bnymellon.com.com\
shareowner
Global BuyDIRECTSM
BoNY maintains a direct share purchase and
dividend reinvestment plan for AngloGold Ashanti.
Telephone: +1-888-BNY-ADRS
DIRECTORS
Executive
S Venkatakrishnan (Chief Executive Officer) §*
KC Ramon (Chief Financial Officer) ^
Non-executive
SM Pityana (Chairman) ^
Prof LW Nkuhlu (Deputy Chairman) ^
AH Garner #
R Gasant ^
DL Hodgson ^
NP January-Bardill ^
MJ Kirkwood *
MDC Richter #
RJ Ruston ~
* British
~ Australian
§ Indian
^ South African
# American
Officers
Executive Vice President – Legal, Commercial
and Governance and Company Secretary:
ME Sanz Perez
Investor relations contacts:
Stewart Bailey
Telephone: +27 11 637 6031
Mobile: +27 81 032 2563
E-mail: sbailey@anglogoldashanti.com
Fundisa Mgidi
Telephone: +27 11 637 6763
Mobile: +27 82 821 5322
E-mail: fmgidi@anglogoldashanti.com
Sabrina Brockman
Telephone: +1 212 858 7702
Mobile: +1 646 379 2555
E-mail: sbrockman@anglogoldashanti.com
General e-mail enquiries:
Investors@anglogoldashanti.com
AngloGold Ashanti website:
www.anglogoldashanti.com
Company secretarial e-mail:
Companysecretary@anglogoldashanti.com
AngloGold Ashanti posts information that is
important to investors on the main page of its
website at www.anglogoldashanti.com and
under the “Investors” tab on the main page.
This information is updated regularly. Investors
should visit this website to obtain important
information about AngloGold Ashanti.
SHARE REGISTRARS
South Africa
Computershare Investor Services (Pty) Limited
Ground Floor, 70 Marshall Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
South Africa
Telephone: 0861 100 950 (in SA)
Fax: +27 11 688 5218
Website: queries@computershare.co.za
Australia
Computershare Investor Services Pty Limited
Level 11, 172 St George’s Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: 1300 55 2949 (in Australia)
Fax: +61 8 9323 2033
161
INTEGRATED REPORT 2015