[PDF] Vaal River Operations. Social and Labour Plan Half-Year Report: 2013 SOUTH AFRICA REGION CFC. Vaal River Operations Mining Rights:

1 CFC A SOUTH AFRICA REGION Vaal River Operations Social and Labour Plan Half-Year Report: 2013 Vaal River Operations Mi...

CFC

SOUTH AFRICA REGION

Vaal River Operations Mining Rights:

Vaal River Operations

  

Social and Labour Plan Half-Year Report: 2013

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

12/2009MR (DMR Reference Nr: NW30/5/1/1/2/016MR) (Vaal River Operations: Moab Khotsong, Great Noligwa and Kopanang mines) 05/2008MR (DMR Reference Nr: NW30/5/1/2/2/04MR) (Edom and Kleinfontein) 80/2007MR (DMR Reference Nr: NW30/5/1/2/2/15MR) (“Moab Extension”)

ORDER MINING RIGHT(S):  ML 15/2000 (DMR Reference Nr: NW30/5/1/2/3/2/2/14 MR) - Farm Grootdraai The conversion of this right as executed on Monday, 18 February 2013. NEW ORDER MINING RIGHT:  A portion of the Farm Altona 50HP (02/2010 PR (NW/30/5/1/1/2/10039MR.) A section 102 Application has been submitted on Monday,18 February 2013 to incorporate the Altona mining right area into the Grootdraai Mining Right. Once S102 has been granted, the Altona Mining Right will be withdrawn.

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AngloGold Ashanti Limited \ Reg. No.1944/017354/06 SOUTH AFRICA REGION :41 Buskus Street, Baillie Park, Potchefstroom 2531,PO Box 6119, Baillie Park, Potchefstroom, 2526, \ South Africa. Tel +27 (018) 290 3000 \ Fax +27 (018) 290 3010 \ Website: www.AngloGoldAshanti.com

I, Mike O’Hare, Chief Operating Officer South Africa Region of AngloGold Ashanti Limited (Company), undersigned and duly authorised thereto by AngloGold Ashanti Limited, confirm that all information contained in this Social and Labour Plan half year Report for 2013 is a true reflection of the company’s performance the commitments as contained in the Vaal River Operations 2010-2014 Social and Labour Plans as submitted to the Department of Mineral Resources North West Office on 31 August 2010 and as revised and re-submitted on 5 March 2013.

Signed at Johannesburg on ………………………………………………….

Signature: …………………………………...… Chief Operating Officer

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

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CONTENTS

Page No SLP Glossary of Terms and Acronyms / Abbreviations

Introduction and Executive Summary

SECTION 1:

Preamble

SECTION 2:

Human Resource Development Programme

SECTION 3:

Community Development

SECTION 4:

Procurement

SECTION 5:

Measures To Ameliorate The Impact of Downscaling And Retrenchment

SECTION 6:

Financial Provision

SECTION 7:

Monitoring, Evaluation and Reporting

101

SECTION 8:

Sustainable Growth and Development

102

SECTION 9:

Beneficiation

106

Annexure 1 - Breakdown of Employees Annexure 2 – Form S ANNEXURES

Annexure 3 – Form Q Annexure 4 – Form R Annexure 5 – Form T

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SLP Glossary Of Terms And Acronyms / Abbreviations Abbreviation

Full Word

ABET

Adult Basic Education and Training

AGA

AngloGold Ashanti South Africa Region

ATDS

AngloGold Ashanti's Training and Development Services

ATR

Annual Training Report

BEE

Black Economic Empowerment

Black Owned

BPF

Business Process Framework

BWO

Black Women Owned

CBOs

Community Based Organisations

CSDC

Central Skills Development Committee

CSI

Corporate Social Investment

DMR / DME

Department of Mineral Resources / Department of Minerals and Energy

DoL

Department of Labour

DTI

Department of Trade and Industry

EAP

Economically Active Population

EDP

Executive Development Programme

Employment Equity

EME

Exempted Micro Enterprise

FET

Further Education & Training

FLC

Foundational Learning Competence

HDSAs

Historically disadvantaged South Africans

HIV

Human Immunodeficiency virus

HRD

Human Resources Development

ICMM

International Council on Mining and Metals

IMDP

Intermediate Management Development Programme.

LED

Local Economic Development

Million

Masakhisane

R10 million development and equity fund that works in conjunction with SMEDI

MDP

Management Development Programme

MC/ Mining Charter or the Charter

Broad-Based Socio-Economic Empowerment Charter for the South African mining industry Mineral and Petroleum Resources Development Act, 28 of 2002, which came into effect in South Africa on 11 May 2004. Regulates the granting of mining authorisations and prospecting permits.

MPRDA

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SLP Glossary Of Terms And Acronyms / Abbreviations Abbreviation

Full Word

MHSC

Mine Health and Safety Council

MQA

Mines Qualifications Authority

MTs

Management Trainees

NGO

Non -Government Organisation

NPAT

Net Profit after Tax

NPO

Non-Profit Organisation

NQF

National Qualifications Framework

NUM

National Union of Mineworkers (South Africa) - union representing the largest number of South African underground employees

NWP

North West Province

P2V

Pathway to value

Paterson grading system

Well-known job classification system used at a number of AngloGold Ashanti operations

PEA /PER

Personal Effectiveness Appraisal /Personal Effectiveness Review (Merit award)

QCTO

Quality Council for Trades and Occupations

QSE

Qualifying Small Enterprise

South African Rand

Revised SLP

SLP as submitted to the DMR in November 2011 and March 2013, revising the plan submitted in August 2010.

South African

SAR

South African Region

SDC

SETA

Skills Development Committee Stakeholder Engagement Action Plans - plan to engage with stakeholders, formally and timeously in respect of issues that relate to the operation and may affect them Sector Education Training Authority

SIMS

State Intervention to the Mineral Sector

SLP

Social and Labour Plan

SMEDI

Small and Medium Enterprises Development Initiative unit established by AngloGold Ashanti to identify and help small business with potential

Systems for People An institution owned by the South African mining industry, through which the industry has historically recruited labour but which now fulfils a broader social role in addition to its recruitment function Vaal River Operations

WSP

Workplace Skills Plan

YTD

Year to date

SEAP

Teba

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INTRODUCTION

As reported in the 2011 Social and Labour Plan Report the company submitted its Vaal River Operations Social and Labour Plan (SLP), as outlined below on 27 August 2010. The delay in the submission was due to the fact that during 2010, the Mining Charter was in the process of being reviewed by the government and relevant stakeholders, and it was envisaged that this process would be concluded during the first half of the year. Unfortunately, this was not the case and the Amended Mining Charter was only gazetted in September 2010, some few weeks after the submission of the above-stated SLP. On 10 May 2011, the company received a letter from the DMR NW (North West Province) Regional Manager with respect to its application for “Farm Grootdraai” (ML 15/2000), directing it to reconsider some of the provisions of the above stated Social and Labour Plan. This precipitated a process of consultations with the NW DMR, unions and municipalities of Matlosana (operational area), Moqhaka (host communities) and OR Tambo (Labour sending area), aimed at reviewing the above-stated SLP in line with the DMR directive and agreement reached during the consultation process with all the stakeholders. This resulted in the Revised SLP as submitted to the DMR on 16 November 2011. The abovementioned consultations resulted in the company substantially increasing its financial provisions, taking into account the DMR’s directive and recommendations, in particular the recommendation that if “Farm Grootdraai” and Altona have to form part of the VR SLP, it would have to increase its financial provisions parallel to the above review of the SLP. The company has subsequent to the submission of the abovementioned Revised SLP, engaged with the DMR to get guidance on the SLP Implementation Plan. These resulted in the parties reaching the understanding that issues raised by the DMR subsequent to the submission of the abovementioned SLP, will be dealt with in the abovementioned Implementation Plan due for submission together with the 2011 SLP Report. On the 24 July 2012 the company again received another letter similar to the one it received on 10 May 2011. The company was of the view that the DMR was frustrating its efforts to implement its Social and Labour plan projects by continuously moving the goals posts and therefore escalated its grievances in this regard to the office of the Deputy Minister of Mineral resources. A meeting between the parties including the Director of Mineral Regulations was held at the office of the Deputy Minister on 21 August 2012 facilitated by the Head of Department at that office. The parties agreed on the way forward to finalising the Social and Labour Plan which included further consultations with the Matlosana Municipality on the new projects that would replace that the DMR NW office had rejected namely; the James Motlatsi Stadium, Hawkers Shelter and the upgrading of the Market Hall. To this end the company embarked on another process of consultations with the Matlosana Municipality which was concluded on 9 November 2012 when the parties agreed on the replacement projects namely the Swimming Pool in Tigane, The School Sports facilities in Tigane, the Sanitation project in Khuma and Kanana and the Township/ land development in Khuma. The company subsequently forwarded the signed agreement between itself and the Matlosana Municipality to the DMR .On the 5th December 2012 the DMR informed the company in writing that its Social and Labour Plan would be approved provisional to it submitting an updated Social and Labour Plan. The above stated DMR letter also gave permission to the company to proceed with the implementation of its Social and Labour Plan projects. The company submitted the revised VR SLP to the DMR offices on the 5 March 2013 and is awaiting final approval of its VR Operations SLP. The above stated prolonged process leading to the approval of the Social and Labour Plan has led to the delay in the execution of the company’s LED projects. However the company had through its Social and Institutional Fund and its Enterprise Development Fund continued to discharge its social responsibility by continuing to support financially and otherwise the NGOs and SMMEs in Matlosana, Moqhaka and Labour Sending Areas in particular, the OR Tambo District Municipality. Also, the company has, as reported in 2011, already put in place structures, plans, processes and mechanisms that would enable it to deliver all its committed projects from AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

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2010 beginning 2013 once approval was given to it by the DMR.. Now that the DMR has officially approved the company’s Social and Labour Plan, we are confident that all projects committed in the Social and Labour Plan would be delivered as contained in the Implementation Plan and Schedule as submitted to the DMR in the nd 2 quarter of 2013.For example, the Sonata Junior Primary School project at Libode in the Eastern Cape was successfully launched by the Ministers of Minerals and rd Basic Education on the 3 April 2013. The Vaal River Technical High School Laboratory and Computer Center have been completed are ready for launching in the 3 quarter of 2013. During the second quarter of 2013, the company held the Mandating and Implementation Committee meetings with the Matlosana and OR Tambo Municipalities to sign off on the SLP Projects Implementation Schedules. Community Briefing Sessions were held with local NGOs, SMME’s and NPOs in Matlosana and OR Tambo during the course of June 2013. The Future Forum meeting with all the recognised unions to brief them of the progress with regards to the SPL projects and programs was held on the 21 June 2013. In conclusion, much as the above stated consultation process delayed the implementation of the local economic development projects, it has had positive spin offs in the sense that it has fostered a relationship based on trust between the company, the DMR, Labour, NGO’s,, SMMEs, and the Municipalities which would enable the projects to be implemented smoothly as well as paving the way for the smooth SLP approval process into the future.

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B. EXECUTIVE SUMMARY The following are the salient points in this report as they relate to the company’s progress towards achieving its Mining Charter (MC) obligations in the quarter two of 2013 reporting period: 1.

Reporting – The company submitted its 2012 Annual Report to the DMR on the 28th March 2013.

Ownership – The company has achieved 26.8% HDSA ownership as at the end of June 2013.

Housing and Living Conditions – At the end of the reporting period, 90% of the Vaal River (VR) Operations residences were converted into single accommodation against the Mining Charter target of 75%, and 100% of the residences were also converted into family units against the Mining Charter target of 75% during the reporting period. With respect to home ownership the company and organised labour reached an agreement on the ownership scheme which is now in the process of being implemented. Finally, with respect to nutrition, the Chamber of Mines Research Organisation (COMRO) report was used as a guide in terms of the dietary requirements.

Procurement and Enterprise Development – At the end of the reporting period, the VR Operations achieved 42% against the MC target of 30% for” Capital Goods”, 39% against the MC target of 60% for “Services” and 59% against the MC target of 40% for “Consumable Goods”. It should be noted that in the past reports the company reported the figures of the entire South Africa Region Procurement spend whilst beginning this year as per the directive of the DMR we are now reporting Vaal River and West Wits spend separately. The main challenge with respect to Services remains the misalignment between the mining charter requirement and the BBBEE Code of 25% which governs majority of our suppliers who are not obliged to use the MC ownership target as a sole measure of a company’s BEE status. As previously reported, this issue has been brought to the attention of the DMR for noting. Also, with respect to the Multinational Suppliers contribution to the social fund, the company still awaits the finalisation of the fund by the DMR.

Employment Equity (EE) – The VR Operations achieved all the targets as set by the Mining Charter for the reporting period up to the end of June 2013. In the revised SLP the targets have also been set per business unit, as per the directive of the DMR. Much as we have met our targets in all the levels of management, senior management level especially with respect to core function (25.5% achieved against the target of 35%), remains a challenge and appropriate action plans have been put in place to assist in achieving the 2014 targets in this regard.

Human Resources Development (HRD) – Expenditure as a percentage of the total annual payroll for the reporting period is 6.30% against the Mining Charter target of 4.5%. The company has also commissioned Technology initiative intended to develop solutions in deep level mining in order to eliminate safety, risks increase productivity, prolong its life of mine and continue to contribute positively to the socio economic development of its employees and host communities as well as national fiscus. The company has also introduced the Community Human Resource Development Programmes in the Matlosana, Moqhaka and Labour Sending Areas in particular OR Tambo District Municipality with the main objective of alleviating the challenge of youth unemployment.

Mine Community Development – As per the 2011 report in this regard and as stated above, subsequent to the directives by the DRM, extensive consultations were undertaken with the host and labour sending municipalities to review and identify community development projects for the period ending 2014. The financial provision including for community human resources development programmes was substantially increased to make a meaningful impact in the socio-economic wellbeing of the communities in which we operate and in the labour sending areas. Although this resulted in the slowing down of delivery in this particular area, the

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stakeholders have put mechanisms in place beginning in 2012, to speed up the delivery of the above mentioned LED and Community Human Resource Development Programmes. As per the directives of the DMR not all ED projects should be financed as loans, especially those whose beneficiaries are likely to be broad based. In line with this approach the ED projects have been categorised into ‘Income Generating Projects’ financed by way of grants (financed from the LED fund), and ED projects financed by interest free loans (financed from the ED fund). The Mandating and Implementing Committees established in terms of the MOUs signed between the company and the Municipalities of Matlosana and OR Tambo are now functional and are used to speed up delivery of the community development projects in the company’s host and labour sending areas. th The Future Forum constitution was signed by all recognised Trade Unions in February 2012 and was launched on the 24 of August 2012. It is again noted that in the “DMR Mining Charter Report” template reference is been made to the “BBBEE codes hav(ing) a target of 1% NPAT”. In terms of the BBBEE codes the socio-economic element, community development projects are not only confined to LED projects as identified in the IDPs of municipalities but also includes other contributions to the community like community ABET, bursaries, internships, and portable skills. To this end the community development expenditure is inclusive of Community HRD contributions. 8.

9. 10.

Sustainable Development and Growth – With respect to Environment Management the company revised and resubmitted it’s EMP during the fourth quarter of 2011 following the DMR comments on the initial submissions made in 2009. The company also complied with the commitments in the tri-partite action plan on health and safety. Beneficiation - The company’s initiatives in this regards are outlined in the “Beneficiation” section of this report Definition of “employee” – In the engagements with the DMR, it was brought to the attention of the company that the MPRDA’s definition of an “employee” includes those of contractors. An Action Plan has been put in place to engage with the major contractors on how they will have to comply with the relevant pillars of the SLP and submit their reports to the company on an annual basis for inclusion in the company’s SLP Annual Reports to the DMR.

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SECTION 1: PREAMBLE The company lodged its Social and Labour Plan (SLP) in compliance with the requirements of the provisions of Section 23 of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002) hereafter referred to as the MPRDA, for its mining operations in the Vaal River area as outlined in 1, 2 and 3 below on the 31 August 2010. Subsequent to its lodgement of the abovementioned SLP, the company received directives from the North West Department of Mineral Resources (DMR) in letters dated 10 May 2011, 24 July 2012 and 19 February 2013 pertaining to the Social and Labour Plan for “Farm Grootdraai” DMR Reference Number 30/5/1/2/5/2 (14) MR. Consultations between the company and the DMR took place and have subsequently resulted in an agreement between the parties leading to the amendments to the above-mentioned SLP submitted on 15 November 2011, and this subsequent Revision 3 submission of the SLP in respect of the following mining rights : 1. 12/2009MR (DMR Reference Nr: NW30/5/1/1/2/016MR) (“Vaal River Operations: Moab Khotsong, Great Noligwa and Kopanang mines”) 2. 05/2008MR (DMR Reference Nr: NW30/5/1/2/2/04MR) (“Edom and Kleinfontein”) 3. 80/2007MR (DMR Reference Nr: NW30/5/1/2/2/15MR) (“Moab Extension”) And the following old order mining right(s) awaiting conversion:  ML 15/2000 (DMR Reference Nr: NW30/5/1/2/3/2/2/14 MR) in respect of the “Farm Grootdraai” The conversion of this right was executed on Monday,18 February 2013. And in support of the following application for a new order mining right made on the SAMRAD system:  A portion of the Farm Altona 50HP (which is an area adjacent to areas covered by the aforementioned right in 1 above, currently held under 02/2010 PR (NW/30/5/1/1/2/10039MR.) A section 102 Application was submitted on Monday, 18 February 2013 to incorporate the Altona mining right area into the Grootdraai Mining Right. Once S102 has been granted, the Altona Mining Right will be withdrawn. In this section we address: The objectives of the Broad Based Socio Economic Empowerment Charter for the South African industry hereafter referred to as “the Mining Charter”, whose objective is to effect sustainable growth and meaningful transformation of the mining industry as follows: (a) To promote equitable access to the nation’s mineral resources to all the people of South Africa; (b) To substantially and meaningfully expand opportunities for Historically Disadvantaged South African’s (HDSA) to enter the mining and minerals industry and to benefit from the exploitation of the nation’s mineral resources; (c) To utilise and expand the existing skills base for the empowerment of HDSA and to serve the community; (d) To promote employment and advance the social and economic welfare of mine communities and major labour sending areas; and (e) To promote beneficiation of South Africa’s mineral commodities. REGULATION 46 (a) of the Mineral and Petroleum Resources Development Act, 28 of 2002 (MPRDA) requires: The contents of a social and labour plan must include a preamble which provides background information of the mine in question. The following is outlined

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1.1

Background

AngloGold Ashanti's (AGA) vision underpins its mission, values and stakeholder relationships. As a mining company finding, producing and marketing its product AGA seeks to create value for shareholders, employees, host communities and other relevant stakeholders. AGA is a company with 20 global operations of which six are based in South Africa (SA) with two main licensing areas namely West Wits and Vaal River. This Social and Labour Plan (SLP) Report pertains to the Vaal River Operations. AGA South Africa Region has a total workforce of 39 383 employees in the SA Operations, namely, West Wits and Vaal River Operations which includes contractors. In the Vaal River Operations, the company employs 22 220 people. The breakdown of the origin of Employees is detailed in Annexure 1. The Vaal River Operations are situated approximately 180 kilometres (km) west of Johannesburg within the North West Province and Free State. The site is approximately 15km south of Klerksdorp. Other neighbouring towns are Orkney, Stilfontein, which are situated 10km and 10km respectively to the west and east of the mine. The land occupied by the Vaal River Operations straddles the boundary between the Free State and North West provinces. ADDRESS AND CONTACTS: The salient information in regard to the Vaal River Operations is reflected here under in Section 1.2. 1.2 Salient Information : Vaal River Operations Name of the company/applicant:

AngloGold Ashanti Limited

Name of mine or production operation:

Physical address(registered office):

Moab Khotsong, Great Noligwa and Kopanang mines, Edom and Kleinfontein, Moab Extension, “Farm Grootdraai” and “Farm Altona” Farm 69 Chrystalkop, Vierfontein District, Vaal River, Orkney Southern side of the R502, between Orkney and Potchefstroom 41 Buskus Street, Baillie Park, Potchefstroom , 2531

Postal address

PO Box 6119, Baillie Park, Potchefstroom, 2526

Telephone number

018 290 3000 /23/33

Fax number

086 644 2510 / 018 290 3010

Location of mine or Production Operation:

Matlosana

Commodity:

Gold

Life of Mine or Production Operation

2010 to 2046, depending on business unit

Financial year:

01 January to 31 December

Reporting Year:

Annually

Breakdown of Employees per Labour Sending area

See Annexure 1

Locality Map

See Annexure 1.2 of the SLP. S Moloko (Senior Vice President: Sustainability) Cell: 082 650 2543 Telephone No: 018 290 3023 [emailprotected]

Physical address of Mine:

Name of Contact Person at Regional Office:

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1.2

Breakdown of employees per sending area

AGA has a total workforce of 39 383 employees in the SA Operations which includes contractors. In the Vaal River Operations the company employs 22 220 people. Listed below is a breakdown of the origin of employees and this is further detailed in Annexure 1. Contractor Integration into the Social and Labour Plan – Integration and Progress The company is in the process of integrating its contractors into the social and labour planning with a focus on contractor employees who actually work on our operations. The plan includes the development of a contractor compliance framework, contractor engagement and auditing of plans and reports to ensure that it supports the company’s transformational targets. The company plans to have the contractor integration into its social and labour planning and compliance process fully concluded by the end of 2013. The table below provides an outline of the plan where after the main contractors will report their progress to the company on an annual basis. CONTRACTOR INTEGRATION PLAN & PROGRESS 2012

Activities

STATUS

Step 1

Develop SLP Contractor compliance framework

Completed

Step 2

Completed

Step 4

Identify Core Contractors Notify and consult with all contractors on their SLP accountabilities and contributions leading up to 2014, aligned to AGAs SLP commitments Develop and distribute SLP Audit template

Step 5

Workshop with Contractors to Build Capacity in terms of SLP compliance

Step 6

Inform Contractors of Deadline Dates & Collation of Information

Step 7

Baseline assessment and validation of information

Pending

Step 8

Rework of SLP's by contractors (If necessary)

Pending

Step 9

Bi-monthly meetings and quarterly Audits

Step 3

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

AUG

2013 SEP

OCT

NOV

JAN

FEB

MARCH

Completed Completed Completed (11 Oct 2012) Completed

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1.3

Undertakings

AGA has consistently supported the intention behind the spirit of the Mining Charter and its “pursuit of a shared vision of a globally competitive mining industry that draws on the human and financial resources of all South Africa’s people and offers real benefits to all South Africans”. This SLP report details AGA’s efforts to comply with the Mineral and Petroleum Resources Development Act, 28 of 2002 (MPRDA), particularly the transformational requirements as stipulated in the mining charter. In compliance to the mining charter the company’s undertakings are herein detailed. The duration of the SLP is five years for the period of 2010 to 2014. The company shares and understands the objectives of the Social and Labour Plan as follows:  Promote employment and advance the social and economic welfare of all South Africans;  Contribute to the transformation of the mining industry; and  Ensure that AGA contributes towards the Socio-Economic development of the area in which they operate (including the major Labour Sending Communities). In terms of Human Resource Development (Regulation 46 (b)) the company undertakes the following (details further explained in Section 2):

1.3.1

Skills Development

Workplace Skills Plan (WSP) and Annual Training Report (ATR)  Comply with the Skills Development Act.  Submit WSP and ATR to the MQA.  Ensure that training is conducted and that our plan supports business objectives.  Consult organised labour on WSP and ATR.  Ensure that development needs are identified and documented.  Individual development plans are implemented.  Ensure that company receives its mandatory grants.  Provide for management development programmes.  Forge partnerships with academic institutions and service providers.  Encourage employees to their further studies (at management discretion).  Provide financial or other support to employees entering graduate or post graduate studies (at management discretion). Adult Basic Education and Training (ABET)  Provide every employee with the opportunity to become numerate literate.  Provide ABET to communities.  Provide NQF level 1and 2 training.  Introduce foundational learning competence.  Provide facilities for provision of ABET.  Maintain ABET marketing initiatives.  Set ABET targets for the period 2010 to 2014.  Provide computer and life skills training.

1.3.2

Portable Skills

 Provide community members with entry level skills training in mining. AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

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 Provide portable skills training to communities and employees in engineering related skills.

1.3.3    

Internships and Bursaries

Develop skills to address the South African skills shortage. Implement measures to equip and enhance competencies of the talent pool. Provide internships and bursary programmes. Provide learnership programmes.

1.3.4

Career Progression and Mentorship

 Implement the System for People (SP) Model.  Set targets for management development programmes.  Implement career path initiatives.

1.3.5    

Employment Equity

Commit to comply with the Employment Equity Act and Mining Charter Requirements. Set up a five year Employment Equity (EE) plan for transformation of our workplace. Achieve 40 per cent HDSA representation in all management levels by 2014. Draw plans to address visible areas and remove barriers to Employment Equity (EE) community development.

1.3.7

Community Development

In terms of community development we as a company undertake the following:  Build successful and mutual beneficiary relations with stakeholders.  Participate in local government forums.  Conduct community briefing sessions.  Implement management standards for community development.  Identify local economic development projects in consultation with community.  Implement Social Development Projects.  CHRD programmes.

1.3.8

Housing and Living Conditions

In terms of Employee Housing we as a company undertake the following:  Provide Accommodation options to employees.  Implement a project to upgrade residences.  Implement projects to develop family units.  Promote home ownership.  Improve and manage nutrition. AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

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1.3.9

Procurement and Enterprise Development

In terms of procurement we, as a company, undertake the following:  Give HDSA’s preferred supplier status.  Supply a database of BEE suppliers.  Set up targets for BEE procurement.  Implement a plan to measure and facilitate BEE procurement and Local Procurement.  Implement SMME development programmes.

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1.4

Scorecard - Vaal River

The following table indicates Vaal River progress as at the end of June 2013 reporting period, as per the Scorecard for the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry: Element

Reporting

Ownership

Housing and living conditions

Description

Has the company reported the level of compliance with the charter for the calendar year Minimum target for effective HDSA ownership

Conversion and upgrading of hostels to attain the occupancy rate of one person per room. Conversion and upgrading of hostels into family units Home Ownership

Procurement & Enterprise Development

Employment Equity

Procurement spent from BEE entity

Multi-national suppliers contribution to the social fund (New requirement of revised charter) Diversification of the workplace to reflect the country's demographics to attain competitiveness.

Measure

2014 MC Compliance Targets

Progress Achieved By

Documentary proof of receipt from the department

End March

100%

End Jun 2013 N/A

Meaningful economic participation

26% by 2014

26%

26,8%

Full shareholder rights

26% by 2014

26%

26,8%

26.8%

Percentage reduction of occupancy rate towards 2014 target. Percentage conversion of hostels into family units against units available for conversion Implement initiatives to facilitate home ownership e.g. preference surveys, advice on purchasing homes, training on benefits of home ownership

Occupancy rate of one person per room Family units established

29%

46%

64%

90%

40%*

70%*

80%

100%

The company will set out to implement initiatives as recommended by the COM guideline document.

Capital goods

Facilitate home ownership for all mine employees, with organised labour 40%

39%

34%

42%

Services

70%

29%

39%

46%

39%

Consumable goods

50%

40%

52%

53%

59%

Annual spend on procurement from multi-national suppliers

0.5% of procurement value

Awaiting the DMR’s guidance

Top Management (F Band)

40%

25% **

40% **

40%

44.4%

Senior Management (E Band)

40%

22.20 %

26.4%¹

32.1%

31.4%

Middle Management (D Band)

40%

35%

43.4%²

46.7%

46.2%

Junior Management (C Band)

40%

48.5%

52.6% ³

53.2%

52.7%

Core Skills

40%

49.0% **

52.3%

52.4%

51.6%

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

2010 Actual

2011 Actual

2012 Actual

2014

Page 16 of 128

Element

Description

Measure

2014 MC Compliance Targets

Progress Achieved By

5.1%

4.6%

5.82%

End Jun 2013 6.30%

R23 672 979 ****

R 11 751 964.19 (Community Development) plus Community HRD R8 995 509 Which amounts to 1.1% NPAT

R29 272 157

R21 470 820

2010 Actual

Human Resource Development

Development of requisite skills, incl. support for South African based research and development initiatives intended to develop solutions in exploration, mining, processing, technology efficiency (energy and water use in mining), beneficiation, as well as environmental conservation and rehabilitation

HRD expenditure as percentage of total annual payroll (excl. mandatory skills development levy)

2010 = 3% 2011 = 3.5% 2012 = 4% 2013 = 4.5% 2014 = 5%

Mine community development

Conduct ethnographic community consultative and collaborative processes to delineate community needs analysis

Implement approved community projects in line with IDP's of local and major labour sending municipalities.

Up-to-date project implementation

Improvement of the industry’s environmental management

Implementation of the approved EMPs

100%

Improvement of the industry's mine health and safety performance

Implementation of the tripartite action plan on Health and Safety

100%

Utilisation of South African based research facilities for analysis of samples across the mining value chain Contribution of a mining company towards beneficiation (this measure is effective from 2012)

Percentage of samples in South African facilities

100%

To be clarified

Additional production volume contributory to local value addition beyond the base-line

Section 26 of the MPRDA (percentage above baseline)

To be clarified

Sustainable Development

Beneficiation

2011 Actual

2012 Actual

This amounts to 2.78% of NPAT

2014

Implement of community projects in line with IDP's of local and major labour sending municipalities and as committed in company SLP.

The DMR approved the revised Vaal River Environmental Management Programme (EMP) during the 1st Quarter 2012. Formal environmental performance assessments will be conducted on a two-yearly basis from the date of EMP approval. N/A 100% Annual update Annual update

Legend *

Family Units: No specific targets set by the Mining Charter. We have measured ourselves on actual units converted against total units available for conversion

Clarity regarding definition of core skills is required. AGA definition is all employees with core positions within Mining, Engineering, MRM and Metallurgy disciplines.

***

The 4.6% is the figure which includes white males. It should be noted that when we exclude WM, the HDSA contribution is at 6.59%

****

This figure is for the entire AGA-SAR operations including Corporate Office and excluded Community HRD programmes.

29% HDSA representation at Senior Management level. If we take into account the EAP of White females(6%),HDSA representation is 26%

47% HDSA representation at Middle Management level. If we take into account the EAP of White females(6%),HDSA representation is 37%

53% HDSA representation at Junior Management level. If we take into account the EAP of White females(6%),HDSA representation is 51%

Note

Female representation in the workforce currently stands at 13.5% against the previous charter target of 10%

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

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1.5

Ownership

In this section we address the Mining Charter requirements as detailed below. Mining Charter Requirement: In terms of Ownership the amended BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH AFRICAN MINING and MINERALS INDUSTRY states: Effective ownership is a requisite instrument to effect meaningful integration of HDSA into the mainstream economy. In order to achieve a substantial change in racial and gender disparities prevalent in ownership of mining assets, and thus pave the way for meaningful participation of HDSA for attainment of sustainable growth of the mining industry, stakeholders commit to:  Achieve a minimum target of 26 percent ownership to enable meaningful economic participation of HDSA by 2014;  The only off setting permissible under the ownership element is against the value of beneficiation, as provided for by Section 26 of the MPRDA, as elaborated in the mineral beneficiation strategy. The continuing consequences of all previous deals would be included in calculating such credits/offsets in terms of market share as measured by attributable units of production. The Mining Charter scorecard requirements are indicated below along with the AGA WW compliance to date. SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER FOR THE SOUTH AFRICAN MINING INDUSTRY - AGA : VAAL RIVER OPERATIONS PROGRESS ACHIEVED ELEMENT

Ownership

DESCRIPTION

Minimum target for effective HDSA ownership

MEASURE

COMPLIANCE TARGET BY 2012

2012 2010 Actual

2011 Actual

Q1 31 Mar

Q2 30 Jun

Q3 30 Sep

Q4 31 Dec

2013

Meaningful economic participation

26% in 2014

26%

26.8%

26,8%

Full shareholder rights

26% in 2014

26%

26.8%

26,8%

2014

The revised Mining Charter sets an Ownership Target of 15% HDSA Ownership by 2010 and 26% HDSA Ownership by 2014. Through a combination of ownership transactions with ARMgold, Bokamoso ESOP and Izingwe Holdings the company has achieved 26.8% HDSA ownership.

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Page 18 of 128

Ownership & Joint Ventures and the Mining Charter: The “scorecard” which is designed to measure adherence to the mining charter asks the question regarding Ownership & Joint Ventures viz.:  Has the mining company achieved HDSA participation in terms of ownership for equity or attributable units of production of 15% in HDSA hands within 5 years and 26% in 10 years? AGA South Africa Region’s Black Economic Empowerment Ownership Status: AngloGold Ashanti’s BEE ownership contribution is measured in respect of transactions with three BEE entities. Sale of assets to ARMgold Limited (ARM):  Jan 1998 – Sale to ARM of Vaal Reefs No 1-7 shafts  July 1998 – Sale to ARM of Freegold’s Western Holdings shafts 1, 2, 3, 4, 6, 7 and Welkom gold plant  Jan 2002 – Sale of Free State assets (Bambanani, Joel, Matjhabeng, Tshepong, Jeanette shares, plus surface infrastructure) to ARM/Harmony joint venture. By direction of the then DME/DMR, the “credits” AGA is entitled to claim was calculated by the “units of production” provision of the Mining Charter based on AGA and attributable ARMgold production for the 12 months ended March 2004 – the last production data available at the time AGA applied for the conversion of its mining rights. ARMgold’s attributable production in respect of former AGA assets for that period was 848,602ozs. AGA production at its South African assets in the same 12 month period was 3,232,000ozs. AngloGold Ashanti’s overall HDSA participation in respect of ARMgold is therefore 20.8% (848,602ozs as a percentage of 3,232,000 + 848,602ozs). Employee Share Ownership Plan (ESOP) and Izingwe Holdings: When AngloGold Ashanti was awarded its new order mining rights in 2005, one condition was that it fulfills its undertaking to the DMR that it would introduce an ESOP and carry out a further BEE transaction to complete its ownership obligations in terms of the Mining Charter. That obligation was fulfilled after a period of consultation between AGA and, respectively, the unions representing the approximately 30,000 eligible members of the company’s SA workforce at that time and the leadership of Izingwe Holdings, a BEE company chaired by Sipho Pityana. The transactions were announced in October 2006, involving the transfer of 3 840 000 (25% of them free shares and the remainder E shares operating in a manner similar to share options) to an employee share trust, the Bokamoso ESOP Trust, and 1 400 000 E shares to Izingwe. The transactions were vendor-financed, and there is no possibility of any downside for BEE entities. The ESOP transaction comprised a transfer of 4,5% ownership in terms of the charter, and the Izingwe Holdings (Pty) Ltd transaction 1.5% this taking AGA’s total HDSA ownership credit to 26,8%. Between the December 2006 launch date and December 2012, a total of R387,453,443 flowed to members of the Bokamoso Employee Ownership Share Plan. Of this, R14,624,894 was paid in dividends, R316,545,637 as a consequence of the vesting of free and loan shares, and R56,282,912 due to the proceeds of a rights issue in 2009. AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 19 of 128

In the same period our BEE partner Izingwe Holdings received a total of R8,830,500 in dividend flows and R22,252,455 as a consequence of the rights issue. In addition, Izingwe received 39,052 AGA shares as a consequence of the November 2011 vesting date. It is unknown at what price Izingwe sold the shares through its own brokerage house. The share price at which the vesting took place was R358.50. Izingwe received R14,063,603 as a consequence of the November 2012 vesting. Due to international market conditions, the prevailing share price was “underwater” at the dates of the vesting of the first two tranches of E shares in November 2009 and 2010. In response to representations from the ESOP trustees (including union representatives) and Izingwe, AGA management took the view that, while not required in any way by regulation, the situation was compromising the spirit of the empowerment transactions. Management entered into a new phase of consultations with the unions and Izingwe. This led to a restructuring of the transactions in a manner that builds in a guarantee of value of R40 per share in respect of vesting E shares, and the reinstatement of lapsed E shares. Further value will flow to all participants over the remainder of the life of these transactions, which conclude in 2014.

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SECTION 2. HUMAN RESOURCES DEVELOPMENT PROGRAMME Mining Charter Requirement: In terms of Human Resource Development the amended 2010 BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH AFRICAN MINING and MINERALS INDUSTRY states as follows: “The mining industry is knowledge based and thus hinges on human resource development, constituting an integral part of social transformation at workplace and sustainable growth. To achieve this objective, the mining industry must:  Invest a percentage of annual payroll (as per relevant legislation) in essential skills development activities reflective of the demographics, but excluding the mandatory skills levy, including support for South African based research and development initiatives intended to develop solutions in exploration, mining, processing, technology efficiency (energy and water use in mining), beneficiation as well as environmental conservation and rehabilitation; as follows:     

Target for 2010 = 3%; Target for 2011 = 3.5%; Target for 2012 = 4%; Target for 2013 = 4.5%; Target for 2014 = 5%”

The Mining Charter scorecard requirements are indicated below along with the AGA VR compliance to date.

SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER FOR THE SOUTH AFRICAN MINING INDUSTRY - AGA : VAAL RIVER S OPERATIONS

PROGRESS ACHIEVED ELEMENT

Human Resource Development

DESCRIPTION

Development of requisite skills, incl. support for South African based research and development initiatives intended to develop solutions in exploration, mining, processing, technology efficiency (energy and water use in mining), beneficiation as well as environmental conservation and rehabilitation

MEASURE

HRD expenditure as percentage of total annual payroll (excl. mandatory skills development levy)

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

COMPLIANCE TARGET BY 2014

2013 2010 Actual

5.10%

2011 Actual

4.6%***

2012 Actual

5.82%

31-Mar

30-Jun

30-Sep

31-Dec

6.30%

2014

Page 21 of 128

The MPRDA requirements are: REGULATION 46 (b) (i) which states that: The contents of a social and labour plan must include the following: A human resources development programme which must include a skills development plan which identifies and reports on – (aa) the number and education levels of the employees which must be completed in the form of “Form Q” contained in Annexure II; and (bb) the number of vacancies that the mining operation has been unable to fill for a period longer than 12 months despite concerted effort to recruit suitable candidates which must be completed in the form of “Form R” contained in Annexure II. REGULATION 46 (b) (iii) which states: The contents of a social and labour plan must include a mentorship plan and its implementation in line with the skills development plan and the needs for the empowerment groups. REGULATION 46 (b) (v) which states: The contents of a social and labour plan must include a human resources development programme which must include the employment equity statistics which must be completed in the form of “Form S” contained in Annexure II and the mines plan to achieve the 10 per cent women participating in mining and 40 per cent historically disadvantaged South Africans (HDSA) participation in management within 5 years from the granting of the right or the conversion of the old order right. The Human Resources Development (HRD) Strategy of the South African Region supports the business strategy and objectives, as well as the South African legislative and regulatory framework that seeks to address the general skills shortage within the country, as well as ensuring equitable representation in the workplace. This plan outlines a variety of HRD initiatives in place in AGA. In this document we have indicated the plan for the Employees, Communities as well as the State Intervention to the Mineral Sector (SIMS) requirements. Note:

For a more detailed Core and Critical Skills Report refer to the EE Section of this report Form Q as required by the MPRDA is hereby annexured as Annexure 3 Form R as required by the MPRDA is hereby annexured as Annexure 4 Form S is contained in Annexure 2

HRD and the Mining Charter The “scorecard” which is designed to measure adherence to the mining charter asks he following questions regarding HRD viz.:  Has the company offered every employee the opportunity to be functionally literate and numerate by the year 2005, and are employees being trained?  Has the company implemented career paths for HDSA employees, including skills development plans?  Has the company developed systems through which empowerment groups can be mentored? All the above is addressed in the following report.

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2.1

EMPLOYEES: HUMAN RESOUCES DEVELOPMENT PROGRAMME (HRD)

2.1.1

ADULT BASIC EDUCATION AND TRAINING (ABET) - FOR EMPLOYEES (18.1):

ABET The company continues to provide Adult Basic Education and Training to employees of AGA and the communities in which we operate. During the second quarter of 2013, ABET programmes (Pre-ABET, ABET 1, 2, & 3), National Certificate: Introduction to the Mining and Minerals Sector (NQF level 1) at the equivalent of ABET level 4 and Foundation Learning Competence (FLC) were presented in the Vaal River Area. ABET education is provided on a Part-time basis at no cost to employees, albeit in their own time and during the past year participation in these programs in the Vaal River Area decreased despite the fact that participation was being encouraged through various structures such as Skills Development Committees and marketing. Measures have been put in place to address this i.e.:  Literacy level reports have been designed and communicated to business units to make them aware of any literacy level gaps so that these can be addressed.  Target marketing will be applied to attract individuals who do not have an ABET 3 or above. . ABET initiatives were structured into three processes, namely:  Full-time ABET  Part-time ABET and  Community ABET

Foundational Learning Competence (FLC): The Quality Council for Trades and Occupations (QCTO) specifies that learners who wish to enter into occupational qualifications at NQF levels 2 – 4 must have sufficient foundational competence in communication and mathematical literacy (foundational learning competence - FLC) to cope with the occupational learning demands and to benefit from the learning process. The FLC mathematics in full time has been concluded and of the 18 students that were enrolled, 13 passed. The 5 learners who are not yet competent will get a second opportunity to write at the end of June. A workshop was held in June 2013 where key stakeholders such as the MQA, Chamber of Mines, IEB, employer’s representatives and organised labour discussed the challenges experienced during the FLC pilot and to determine a way forward.

National Career Orientated Qualifications (N1 & N2): These were introduced in 2010 in partnership with the Vuselela Technical College in the Vaal River Area. In 2013 year to date, there were 89 interventions for N1 and 109 interventions for N2. Employees (18.1): ABET targets from 2010 to 2013 The strategy of AngloGold Ashanti is to eliminate illiteracy through ABET. The table below reflects the target vs. actual for ABET classroom education during the second quarter of 2013. Enrolments for ABET education in the Vaal River Area is declining over time and measures are in place to address this, however, is it important to note the following factors with regards to the ABET targets: - Approximately 25% of the target population is aged 50 years and older and that also have an impact on the number of individuals interested to enroll AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 23 of 128

for ABET education. - ABET incentives not being forthcoming from the MQA after learners have successfully completed a level. We have addressed this issue with the MQA and anticipate improvement of this aspect during 2013 - Pre-ABET targets were determined by the outcome of the form Q which included a large number of employees with “No Schooling/Unknown”, which isn’t necessary the case due to employee qualification being updated continuously on the AGA system. - When the targets for the 5 year plan were determined, the targets were aspirational and set too high.

The following table shows the Employee ABET, 18.1 actual for 2013 YTD and 2013 target.

ABET: 18.1 (ENROLMENTS ONLY) VAAL RIVER – Q2, 2013 MALE

FEMALE

AFRICAN AFRICAN

AFRICAN COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

FOREIGNER

Pre ABET

ABET 1

TOTAL

OVERALL TOTAL

TOTAL HDSA

FOREIGNER

ACTUAL

PLAN

114

120

ACTUAL

PLAN

157

165

ACTUAL

PLAN

173

182

ACTUAL

PLAN

106

112

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

106

112

ACTUAL

PLAN

715

753

ACTUAL

160

208

369

379

170

NQF 1

FLC

WHITE

ABET 3

NQF 1 FUND

INDIAN

PLAN

ABET 2

NQF 2

COLOURED

TOTALS *Note: ACTUAL: Pre-ABET, ABET 1, 2, 3, NQF L1 & FLC – 18, 31, 56, 51, 42, 10 Africans are foreigners and do not form part of the total HDSA’s. AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 24 of 128

ABET Milestones Milestone 1: Implement FLC and discontinue NQF 1 full qualification and NQF 2 fundamentals. Progress: 1. FLC pilot for 2012 has been concluded. 17 students have enrolled for FLC during the second quarter of 2013. 2. Pilot studies and the directive from the MQA will indicate the future of NQF Level 1. Milestone 2: Improvement of literacy levels - 10% improvement year-on-year is planned. Progress: The Vaal River Literacy Level reveals that 71% AGA employees and 49% Contractors have ABET 3 or above. 9% of the AGA employees and 36% of the Contractors have either No Schooling or Unknown qualifications. The AGA Literacy Levels for 33405 employees including AGA employees and Contractors shows that in total 65% of all employees have ABET 3 and above and 14% of employees have either No Schooling or Unknown qualifications on the HURIS system. Milestone 3: Improvement of pass rates - 2% year-on-year improvement. The 2013 YTD, 18.1 ABET pass rate for ABET is 66% of which VR’s pass rate is 57%. The current pass rate can’t be measured against 2012 as results could not be concluded in 2012 due to the unrest situation in the mining industry. Progress: Strategies implemented to keep improving the pass rate: 1. Increased management involvement from the business units at the Part-time centres to motivate learners through regular centre visits. 2. Benchmarking against other mining houses and liaising with them to standardise and enhance ABET in the mining industry. 3. New learning material was implemented in 2012. 4. Facilitator development in the form of on-going coaching. Milestone 4: Reduction of drop-out rate - 2% year-on-year reduction. The 2013 YTD, 18.1 ABET drop-out rate for ABET is 1.6% of which VR’s drop-out rate is 0.9%. The current dropout rate can’t be measured against 2012 as results could not be concluded in 2012 due to the unrest situation in the mining industry. Progress: Using Educos as a database has assisted in giving a true drop-out rate as this database makes provision for reporting on modular as can be seen in the tables below. Due to this implementation, the true drop-out rate has dropped significantly.

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Page 25 of 128

PART TIME

ENROLLED

WRITTEN

PASSED

PRE-ABET

ABET1

ABET2

ABET3

NQF L 1

TOTAL PART TIME

% PASSED

FAIL

36.4% 68.4% 63.2% 25.0% 0.0%

7 6 7 15 0

49.3%

ENROLLED

WRITTEN

PASSED

PRE-ABET

ABET1

ABET2

ABET3

NQF L 1 COMMUNITY

NQF L 1 FULL TIME

TOTAL FULL TIME

144

FULL TIME / COMMUNITY

CLASSROOM TOTAL

% PASSED

FAIL

100.0% 0.0% 77.8% 60.0% 100.0% 100.0%

0 0 2 6 0 0

80.5%

110

60.9%

% FAIL

63.6% 31.6% 36.8% 75.0% 0.0% 50.7% % FAIL

0.0% 0.0% 22.2% 40.0% 0.0% 0.0% 19.5% 39.1%

DROP OUT

MODULAR PASS

MODULAR FAIL

TOTAL MODULAR

TOTAL DROP & MOD

0.0% 0.0% 3.2% 0.0% 0.0%

0 0 1 0 0

5 4 2 3 0

0 3 9 2 0

5 7 11 5 0

5 7 12 5 0

1.0%

DROP OUT

MODULAR PASS

MODULAR FAIL

TOTAL MODULAR

TOTAL DROP & MOD

0 0 1 0 0 0

0 0 0 2 0 1

0 0 1 0 0 0

0 0 1 2 0 1

0 0 2 2 0 1

% DROP-OUT

0.0% 0.0% 9.1% 0.0% 0.0% 0.0% 2.2% 1.4%

Milestone 5: Phasing out of RPL, except for placement purposes, all qualifications have been confirmed. Progress: A new accurate literacy level report is available and business units are informed of specific literacy level gaps that they need to address, progress will be monitored. Milestone 6: External standard for ABET examinations – ensure that standard is competitive outside of the mining industry. Progress: ABET standard has been measured and areas of improvement have been identified and are being addressed. New ABET learning material was piloted during 2011 and was implemented during Q1 in 2012. External examination for ABET is on the cards as from the 2013/2014 financial year of the MQA as per their directive. Milestone 7 Implement Adult Basic Education Interventions i.e. Computer Skills & Life Skills. Progress: A resource centre has been established at Kopanang and has been equipped with 10 desk top computers. 6 learners have already done the Computer Skills training and 13 learners have gone through the Life Skills training. These are continuous interventions and more learners will go through both interventions during 2013.

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2.1.2

ALTERNATIVE SKILLS TO MINING (ENGINEERING PORTABLE SKILLS) - FOR EMPLOYEES (18.1):

AGA provides voluntary skills training programmes to AGA Employees and community members with skills which are valuable outside of the mining industry through the Engineering Training Centre. The ratio of beneficiaries is 60% employees and 40% community. Portable Skills training helps employees and community members to attain skills (such as, among others bricklaying and basic welding) that are not mining industry specific. Upon completion of the training, learners are provided with a certificate that may enhance their chances of securing employment in other industries. The employees as well as members of the community are trained in portable skills such as basic plumbing, basic computer, basic house wiring, basic bricklaying and basic welding. Training is available during and after hours for volunteers. Employees and Community members will be entitled to a once off course at no cost to the participant. During 2013 YTD, portable skills were provided to 43 employees of whom 35 were HDSA. Recruiting Indians, Coloureds and White females poses a challenge in terms of this intervention as the actual is a reflection of the company’s demographics that are being addressed though affirmative action measures.

VR PORTABLE SKILLS TRAINING: ENGINEERING - EMPLOYEES 18.1 ACTUALS Q2, 2013 MALE

FEMALE

AFRICAN AFRICAN

AFRICAN COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

FOREIGNER

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

FOREIGNER

PLAN

ACTUAL

TOTALS

*Note: ACTUAL – 7 African males are foreigners and do not form part of the total HDSA’s

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2.1.3

INTERNSHIPS – FOR EMPLOYEES (18.1):

Internships - Management Trainees (18.1) The Management Trainee Programme (of approximately three years in duration) gives graduates and diplomats the skills needed for middle management positions. Incumbents are assisted to obtain professional accreditation where appropriate. MT’s are appointed in critical skill areas. After completion of their studies, most bursars enter into the employ of AngloGold Ashanti as MTs. However, the programme is also extended to suitably qualified employees and external applicants. The purpose of the Management Trainee Programme is to prepare trainees to fulfill middle management roles upon completion of the programme.

VR MANAGEMENT TRAINEES – INTERNAL 18.1 – ACTUAL Q2, 2013 MALE MINING ROCK ENGINEERING ENGINEERING MRM METALLURGY HR SHE FINANCE & COMMERCIAL SERVICES TOTALS

FEMALE 0

OVERALL TOTAL 4

TOTAL HDSA 3

0 0

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

3 9

0 0

1 1

ACTUAL

0 0

PLAN

ACTUAL

1 0

0 0

0 1

PLAN

3 5*

0 1

0 0

1 3

0 0

PLAN

ACTUAL PLAN

ACTUAL

1 1

0 0

1 0

1 4

PLAN

ACTUAL

PLAN

ACTUAL

PLAN ACTUAL

1 0

PLAN ACTUAL PLAN ACTUAL

1 1

0 0

1 1

1 5

3 7

0 0

1 0

0 0

1 0

11 20*

1 1

1 0

5 12

*Note: ACTUAL: Engineering - 2 African Males are Foreigners and do not form part of the total HDSA’s.

The actual exceeds the target as MT’s are replaced as soon as any of them become eligible for placement and in mining more MT’s were appointed to mitigate the Mine Overseers age profile which was found to be higher than expected as well as high turnover at Section Manager level.

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2.1.4

INTERNSHIPS - LEARNER OFFICIALS (18.1)

Officials participate in similar schemes to develop into supervisory positions. These are internal company programmes and are not registered with any external entity. During 2013 YTD, there were 39 learner officials in the Vaal River Area exceeding.

VR LEARNER OFFICIALS INTERNAL 18.1 – ACTUALS Q2, 2013 MALE MINING LEARNER OFFICIALS MINING TRAINEE SHIFT BOSSES ENGINEERING MRM HR SHE FINANCE & COMMERCIAL SERVICES TOTALS

FEMALE

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

10 18

0 0

6 14

ACTUAL

*Note: ACTUAL: Mining Trainee Shift Bosses – 1African male is a foreigner and do not form part of the total HDSA’s

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2.1.5

LEARNERSHIP – FOR EMPLOYEES (18.1):

Miners and Artisans are engaged in learnerships, of approximately 1,5 to 2 years duration, which are programmes registered with the Mining Qualifications Authority and the Department of Labour, allowing contracted learners to gain the skills needed for artisan or supervisory positions. During 2013 YTD, 151 employees benefitted from this initiative which generously exceeds the target of 92. This over achievement can be attributed to engineering learners who have completed the level 2 qualification (section artisans) accessing the level 3/4 qualification afterhours i.e. life-long learning. It shows that accessibility of programmes is paramount to the development of employees who wants to succeed in their careers by showing interest and dedication. The over achievement in learner miners can be ascribed to the roll-over from 2012 because of the strikes in the mining industry.

VR LEARNERSHIPS – EMPLOYEES 18.1 – ACTUALS Q2, 2013 MALE

FEMALE

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

AFRICAN AFRICAN FOREIGNER

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

132

151

LEARNER MINERS

LEVEL 2 TEAM LEADER ENGINEERING LEARNERS TOTALS

111

*Note: Learner Miners: ACTUAL – 23 African males are foreigners and do not form part of the Total HDSA’s Note: Level 2 Team Leader: ACTUAL – 1 African male is a foreigner and do not form part of the Total HDSA’s Note: Engineering Learners: ACTUAL – 4 African males are foreigners and do not form part of the Total HDSA’s.

2.1.6

IN SERVICE BURSARS – FOR EMPLOYEES (18.1):

Bursaries were awarded to employees for full-time tertiary studies in specific fields of study critical to the company. These are technical fields where there is a need as per the sector skills shortage plan. Employees who are sponsored for full-time studies are referred to as In-Service Bursars (ISBs). The company provides generous benefits; In-Service Bursars who receive 80% of their salary as well as accommodation and book allowances.

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During 2013 YTD, 6 employees were awarded In-Service bursaries.

VR BURSARIES – EMPLOYEES / INTERNAL 18.1 – ACTUAL Q2, 2013 MALE

Mining

Engineering MRM Metallurgy TOTALS

2.1.7

FEMALE 0

OVERALL TOTAL 3

TOTAL HDSA 2

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

CAREER PROGRESSION – FOR EMPLOYEES (18.1):

MANAGEMENT DEVELOPMENT Appropriate managerial development relative to the employee’s current role and potential capability in accordance with the suite of managerial development programmes (MMP, IMDP, MDP & EDP). Managerial development is focused on the specific needs of the employee, and is aimed at enhancing his/her effectiveness in his/her role and equipping him/her to develop into future roles. The knowledge and skills acquired are broad in nature and aim to equip the employee with the ability to work more efficiently. As part of the company’s management development strategy we offer the following interventions i.e.; 1. Individuals in the D-Upper Band (Stratum II/III) are nominated and selected to participate in the Management Development Program (MDP) offered by the UCT Graduate School of Business. Upon successful completion graduates receive a Post Graduate Diploma in Management Practice at an NQF level 8. 2. Individuals in the D-Lower Band (Stratum II) are nominated and selected to participate in the Intermediate Management Development Program (IMDP) or the Managerial Mastery programme offered by the UCT Graduate School of Business. Upon successful completion graduates receive an Associate in Management Certificate at an NQF Level 5. Selection is based on a set of criteria that is decided upon annually such as the company’s transformational agenda as well as focusing on individuals that form part of the company’s core business such as mining and engineering. AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 31 of 128



The cost per person for management development programmes that includes the course fees, travelling, accommodation and flight tickets are on average as follows:

o o o o

EDP MDP IMDP MMP

= = = =

R360 000 R 83 000 R 83 000 R 75 000

VR MANAGEMENT DEVELOPMENT ACTUALS Q2, 2013 MALE COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

AFRICAN

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

EDP

MDP

IMDP

MMP MBA

FEMALE

TOTALS

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 32 of 128

2.1.8

STAFF DEVELOPMENT PANELS

Staff development panels are used to facilitate the career development of employees. The Staff Development Panel process, the identification of appropriate candidates and the career developmental plans resulting thereof are the accountability of the MoR. During 2013 YTD, a total of 39 individuals attended staff development panels and 59% of these were HDSA’s and 49% females.

VR DEVELOPMENT PANELS – ACTUALS Q2, 2013 MALE

FEMALE

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

FINANCE

ENVIRONMENTAL

MRM

ENGINEERING

TOTALS

2.1.9

TOTAL FEMALE

STUDY ASSISTANCE

In addition to the formal HRD programmes mentioned above, the SA Region also offers employees the opportunity to grow and develop their knowledge and skills through study assistance. Employees are encouraged to further their studies in areas that will enhance the achievement of company objectives as well as individual development. However, employees who wish to further their studies in any field are not rejected. Employees who successfully complete qualifications that are in line with company objectives and their individual development are reimbursed 100% of their course fees upon completion, while employees who successfully complete qualifications unrelated to company objectives and individual development are reimbursed 50% of their course fees. During 2013 YTD, 194 employees received study assistance, 91% being HDSAs

VR STUDY ASSISTANCE- ACTUAL Q2, 2013 MALE

FEMALE

AFRICAN

AFRICAN FOREIGNERS

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

MOAB KHOTSONG

GREAT NOLIGWA

KOPANANG

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 33 of 128

VR STUDY ASSISTANCE- ACTUAL Q2, 2013 MALE

FEMALE TOTAL

OVERALL TOTAL

TOTAL HDSA

194

177

AFRICAN

AFRICAN FOREIGNERS

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

VR SARS

VR METALLURGY

VR AGA HEALTH

133

154

TOTALS

*Note: MOAB KHOTSONG – 6 African males are foreigners and do not form part of the total HDSA’s GREAT NOLIGWA – 3 African males and 1 African female are foreigners and do not form part of the total HDSA’s KOPANANG – 1African male is a foreigner and do not form part of the total HDSA’s

2.1.10

MENTORSHIP PLAN – FOR EMPLOYEES (18.1):

Mentorship in the SA Region takes place against the backdrop of the Manager once Removed (MoR) contact sessions, which take place twice a year. During these sessions, subordinates have an opportunity to raise challenges they may be experiencing and can be coached and guided by their MoR. This system has been implemented for D-Band level employees and will be extended to lower levels in due course. During 2013 YTD, 134 (MoR & SoR) sessions were conducted which is a reflection of the current employment profile of the company. Affirmative Action measures will be applied to ensure that the company profile with time reflects the demographics of the economically active population on all levels as outlined in the company’s employment equity plan. The purpose of this process is to ensure that every individual in the organization is mentored by their manager two levels up.

VR MENTORSHIP PLAN – CONTACT SESSIONS – ACTUALS Q2, 2013 (Mentorship) MALE

FEMALE

AFRICAN AFRICAN

AFRICAN COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

FOREIGNER

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

FOREIGNER

PLAN

ACTUAL

110

134

TOTALS

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 34 of 128

VR MENTORSHIP PLAN – CONTRACT SESSIONS – ACTUALS Q2, 2013 (Coaching) MALE

FEMALE

AFRICAN AFRICAN

AFRICAN COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

FOREIGNER

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

FOREIGNER

PLAN

ACTUAL

118

157

187

COLOURED

INDIAN

WHITE

OVERALL TOTAL

TOTAL HDSA

TOTALS

*Note: 1 African male is a foreigner and do not form part of the total HDSA’s

VR MENTORSHIP PLAN – MoR/SoR – ACTUALS Q2, 2013 MALE

FEMALE

AFRICAN AFRICAN

AFRICAN COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

FOREIGNER

TOTALS

TOTAL

FOREIGNER

PLAN

ACTUAL

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 35 of 128

The system is based on the three tier managerial accountability structure of manager once removed (MoR), manager, and subordinate once removed (SoR), where the manager once removed is accountable for the mentoring and career development of the subordinate once removed. In terms of this every individual will be mentored by the manager two levels up i.e.:

Figure 1: Three Tier Relationship

Manager once Removed

Mentor e.g. Production Manager

Manager e.g. Section Manager

Subordinate once Removed

Mentee e.g. Mine Overseer

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 36 of 128

2.1.10.1

Mentorship for Learners in Development

In addition all learners who have been enrolled into structured development programmes have formal mentors who guide them through the development process as indicated in the table below:

VR Mentorship Q2, 2013 MALE

ACTUAL Eng Learnership 18.1 ACTUAL Bursars 18.1 Level 2 Team Leaders 18.1

ACTUAL ACTUAL

Learner Miners 18.1 Management Trainees 18.1

ACTUAL ACTUAL

Learner Officials 18.1 ACTUAL Eng Learnership 18.2 ACTUAL Bursars 18.2 Eng Learnership (Additional Com) Department of Labour Learners(Additional Com)

ACTUAL

ACTUAL ACTUAL ACTUAL NCV (Additional Com)

TOTALS

OVERALL TOTAL

TOTAL HDSA

238

331

111

130

461

377

AFRICAN

AFRICAN FOREIGNERS

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

COLOURED

INDIAN

WHITE

TOTAL

ACTUAL

Community Interns Bursars (Additional Com)

FEMALE

AFRICAN FOREIGNERS

ACTUAL

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 37 of 128

2.1.10.2

Simunye Team Training

Team Training for lower level employees have been implemented known as Simunye Team Training. The Simunye Team Training Coordinators and Facilitators have been trained by an Industrial Psychologist to be able to identify possible talent of individuals. The names of the individuals that have been identified are forwarded to the human resources and training departments on the various business units for inclusion in the formal talent pool process. This ensures direct input into the Workplace Skills Plan when possible talent is confirmed during the formal talent pool process, with resultant development plans. A total of 833 employees have attended the Simunye training during 2013, YTD in the Vaal River Area. During this process a total of 100 individuals have been identified for the talent pool.

SIMUNYE TRAINING – ACTUAL Q2, 2013 INDIVIDUALS TRAINED Q2, 2013 MOAB KHOTSONG 315 GREAT NOLIGWA 159 KOPANANG 359 TOTAL 833 SIMUNYE TRAINING – ACTUAL Q2, 2013 EARLY TALENT IDENTIFIED Q2, 2013 MOAB KHOTSONG 32 GREAT NOLIGWA 29 KOPANANG 39 TOTAL 100

Further to this; a process is being explored to put individual development plans in place for all lower level employees by means of psychometric assessments to determine potential and specific developmental needs. A talent pool development system is being developed as one of the subsystems of the System for People (SP) in AGA, enabling all employees with the opportunity to develop to their full potential to meet current and future business needs with the objectives being:   

Match individuals to appropriate roles; Identify employee and companywide development needs; and Support employees in their aspiration to develop to full potential.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 38 of 128

2.2

COMMUNITY: HUMAN RESOUCES DEVELOPMENT PROGRAMME (HRD)

2.2.1

ADULT BASIC EDUCATION AND TRAINING (ABET) - FOR COMMUNITY (18.2):

The ABET programmes (Pre-ABET, ABET 1, 2, & 3), National Certificate: Introduction to the Mining and Minerals Sector (NQF level 1) at the equivalent of ABET level 4 and Foundation Learning Competence (FLC) is presented on a full-time basis to the community. The aim is to improve the literacy levels within the communities within which we operate, but also to make community members employable. During 2013 YTD, 194 community members benefitted from this initiative.

ABET: 18.2 (ENROLMENTS ONLY) VAAL RIVER – Q2, 2013 MALE

FEMALE

AFRICAN AFRICAN

AFRICAN COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

FOREIGNER

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

FOREIGNER

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

100

200

ACTUAL

194

184

Pre ABET

ABET 1

ABET 2

ABET 3

NQF 1

NQF 2

NQF 1 FUND

FLC

TOTALS

*Note: ACTUAL: Pre- ABET, ABET 1, ABET2, ABET 3 & FLC – 1, 1, 1, 5, 1, 1 Africans are foreigners and do not form part of the total HDSA’s

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 39 of 128

2.2.2

ALTERNATIVE SKILLS TO MINING (ENGINEERING PORTABLE SKILLS) - FOR COMMUNITY (18.2):

Alternative Skills to Mining training helps community members to attain skills (such as, among others bricklaying and basic welding) that are not mining industry specific. AGA provides voluntary skills training programmes to AGA Employees and community members with skills which are valuable outside of the mining industry through the Engineering Training Centre. The ratio of beneficiaries is 60% employees and 40% community. Training is available during and after hours for volunteers. Employees and Community members will be entitled to a once off course at no cost to the participant.

VR PORTABLE SKILLS TRAINING: ENGINEERING (COMMUNITY) 18.2 – ACTUALS Q2, 2013 MALE

FEMALE

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

FOREIGNER

TOTALS

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

FOREIGNER

PLAN

ACTUAL

*Note: ACTUAL: 4 African males are foreigners and do not form part of the total HDSA’s

2.2.3

MINING SKILLS - FOR COMMUNITY (18.2):

Community members are trained as stope and development team members at the Satellite Training Centres. This strategy is intended to increase the pool of capable people in local communities available for recruitment while reducing the time spent on recruitment and training during the engagement process. Names of the candidates are registered and forwarded to TEBA. After training the individuals have gained knowledge and some practical experience as a capable candidate that is on route towards full competency in the skill trained. During 2013 YTD, 66 community members benefitted from this initiative, recruiting particularly Indians is challenging and intensified marketing will be applied in addressed to close the gap.

VR MINING SKILLS TRAINING – COMMUNITY 18.2 – ACTUALS Q2, 2013 MALE TOTALS

OVERALL TOTAL

TOTAL HDSA

101

FEMALE

AFRICAN

COLOURED

INDIAN

WHITE

PLAN

ACTUAL

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

Page 40 of 128

2.2.4

INTERNSHIPS – FOR COMMUNITY (18.2):

The company continues to work in partnership with the MQA to provide work-integrated learning for external students. These students are selected from the database of MQA-funded learners. Assistance depends on the performance and aspirations of the student as well as the availability of suitable opportunities within the company.

VR EXTERNAL INTERNSHIP PROGRAMMES: NUMBER OF MQA STUDENTS – ACTUALS Q2, 2013 MALE

MQA STUDENTS

2.2.5

FEMALE

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

PLAN

ACTUAL

LEARNERSHIPS - FOR COMMUNITY (18.2):

Engineering skills training is being provided to community members to obtain formal qualifications, which they will be able to apply within the mining sector. The learners will acquire skills and knowledge to the level where they have been found capable to perform the work. During 2013 YTD, 9 community members have benefitted from the initiative. The plan was to train 3 learners but due to the shortage of riggers and instrumentation mechanicals at the business units, we increased the number to cater for the shortage of artisans.

VR LEARNERSHIP – COMMUNITY 18.2 – ACTUALS Q2 2013 MALE

ENGINEERING LEARNERS

FEMALE

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

PLAN

ACTUAL

*Note: ENGINEERING LEARNERS – ACTUAL - 1 African male is a foreigner and do not form part of the total HDSA’s

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 41 of 128

2.2.6

VOCATIONAL BURSARS – FOR COMMUNITY (18.2):

Bursaries are offered to learners engaged in full-time tertiary studies in specific fields of study critical to the company, where there is a skills shortage. These Vocational bursars are accommodated on the AngloGold Ashanti Vocational Bursars (AVB) Scheme and are sourced externally. The difference between the plan and actual is as a result of the availability of eligible bursars in core fields.

VR BURSARIES – VOCATIONAL / EXTERNAL 18.2 – ACTUALS Q2, 2013 MALE

Mining Engineering MRM Metallurgy TOTALS

FEMALE 0

OVERALL TOTAL 4

TOTAL HDSA 3

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

PLAN

ACTUAL

1 8

0 1

0 0

0 3

1 12

1 1

0 0

0 1

1 1

PLAN

3 15

3 12

ACTUAL

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 42 of 128

2.3

YOUTH DEVELOPMENT PROGRAMMES

2.3.1

COMMUNITY BURSARIES:

The company commits to provide open bursaries to community members admitted for full-time degree or diploma studies at approved tertiary institutions, with preference given to learners in the local operational areas. Individuals will not be guaranteed employment but the bursary does not carry any obligation. The initiative was marketed within communities through local newspapers and through internal communication channels. During 2013 YTD, 16 community members were awarded bursaries for studies related to core skills and 14 for non-core fields of study in the Vaal River Area. In total the plan is to provide bursaries to 30 community members in the VR area and during 2013 YTD, 30 were awarded.

VR COMMUNITY BURSARS – ACTUALS Q2, 2013 MALE

CORE TOTALS

FEMALE

AFRICAN

COLOURED

INDIAN

WHITE

PLAN

ACTUAL

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

AFRICAN

COLOURED

INDIAN

OVERALL TOTAL 18

TOTAL HDSA 16

OVERALL TOTAL 12

TOTAL HDSA 11

TOTAL

VR COMMUNITY BURSARS – ACTUALS Q2, 2013 NON-CORE TOTALS

PLAN

MALE AFRICAN

COLOURED

INDIAN

FEMALE WHITE

TOTAL

WHITE

TOTAL

ACTUAL 6* 0 0 0 6 5 1 0 2 8 14 13 *Note: 1 Community Bursars is a foreigner and do not form part of the total HDSA’s Subsequent to screening all CV’s received, the company had to work with the candidates in the applicant pool. Although the company fell short of the target for bursars in core skills, more bursaries were awarded to bursars with non-core skills.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 43 of 128

2.3.2

COMMUNITY TRAINING – MINING SKILLS PROJECT:

The purpose of the Mining skills community project is to provide community members in the Vaal River District the opportunity to enrich themselves by obtaining knowledge and skills, which they will be able to apply within the mining industry. The community learners will be provided the opportunity to obtain Mining and or Development Team knowledge and skills, up to the level where they have been found capable. This implies that they have done all the theory as per unit standard as well as the simulated practical tasks as required by the unit standards. After obtaining capability status their names are placed on a TEBA waiting list for possible engagement. For engagement the candidate needs to comply with AGA selection criteria. The plan for 2013 is to enrol 175 community members. 2013 YTD, 133 have already been enrolled.

VR COMMUNITY TRAINING – MINING SKILLS PROJECT - SIMS – ACTUALS Q2, 2013 MALE TOTALS

2.3.4

OVERALL TOTAL

TOTAL HDSA

175

162

133

126

FEMALE

AFRICAN

COLOURED

INDIAN

WHITE

PLAN

ACTUAL

110

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

123

121

TOTAL

DEPARTMENT OF LABOR LEARNERS (TEAM LEADERS) – COMMUNITY:

The MQA have granted AGA funding for Community Team Leader Learnerships to be used for community learner. The company will partner with the DOL where they will provide us with the required learners from the DOL Employment Services for South Africa (ESSA) data base.

VR DEPARTMENT OF LABOUR (TEAM LEADERS) – SIMS COMMUNITY – ACTUALS Q2, 2013 MALE TOTALS

2.3.5

OVERALL TOTAL

TOTAL HDSA

FEMALE

AFRICAN

COLOURED

INDIAN

WHITE

PLAN

ACTUAL

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

COMMUNITY INTERNSHIPS:

The company commits to provide supervised work experience which can lead to future employment opportunities for community members with degrees or diplomas to extend the theoretical knowledge acquired through their studies in a practical way. The focus will be on the areas where the company has the technical expertise required to provide the interns with the necessary exposure.

During 2013 YTD, 26 Community members received internships. 7 for Core and 19 for Non-Core internships. AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 44 of 128

VR COMMUNITY INTERNSHIP - ACTUAL Q2, 2013 MALE

CORE

OVERALL

FEMALE

TOTAL HDSA

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

PLAN

ACTUAL

OVERALL

TOTAL

VR COMMUNITY INTERNSHIP - ACTUAL Q2, 2013 MALE

NONCORE

2.3.6

FEMALE

HDSA

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

PLAN

ACTUAL

INVOLVEMENT WITH FET COLLEGES:

A contract has been signed with the Vuselela Technical College for the: • • • • •

Development of teachers: Practical exposure for teachers: Student visits to Training Centers: Aligning of learning material with Industry needs: Second hand examples of equipment to be provided to colleges:

In partnership with Vuselela Technical College management, 13 lecturers (11 AM & 2 AF) have been enrolled into Engineering Learnerships. Workplace experience for these lecturers will commence during July 2013.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 45 of 128

NCV PRACTICAL’S:

2.3.7

The plan was to host 40 NCV students during 2013. So far 48 have already received practical work exposure as they complete their studies through the Vuselela Technical College.

VR NATIONAL CERTIFICATE (VOCATIONAL) SIMS COMMUNITY – ACTUALS Q2, 2013 MALE

NCV

TOTALS

OVERALL

FEMALE

HDSA

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

PLAN

ACTUAL 25 0 2 0 27 21 0 0 0 21 *Note: The challenge remains that some demographic races do not pursue engineering studies (Coloured males & females; White males and females; Indian female)

2.3.8

TOTAL

COMMUNITY YOUTH PORTABLE SKILLS:

Portable Engineering Skills training will be provided to the youth who may include those unemployed within close proximity of the AGA operations. The Training Centre will consider the youth needs and the needs of the communities in host areas in order to determine appropriate courses. The youth and members of the community will be entitled to a once of course free of charge to the participant. During 2013 YTD, 137 community members benefited from this initiative, recruiting Indians for this initiative have proven challenging and intensified marketing will be applied in an attempt to address these gaps. The target was exceeded as the company accommodated additional learners as request by the Matlosana Mandating Committee. Attracting White, Coloured and Indian females and Indian males for this intervention remains a challenge and during 2013 we will partner with the Matlosana Municipality to source other groupings like Indians, Coloureds and Whites.

VR YOUTH PORTABLE SKILLS TRAINING – SIMS COMMUNITY – ACTUALS Q2, 2013 MALE

FEMALE

AFRICAN AFRICAN

AFRICAN COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

FOREIGNER

TOTALS

COLOURED

INDIAN

WHITE

TOTAL

OVERALL TOTAL

TOTAL HDSA

FOREIGNER

PLAN

ACTUAL

137

135

*Note: ACTUAL - 1 African female is a foreigner and do not form part of the total HDSA’s

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 46 of 128

2.3.9

COMMUNITY TRAINING FOR ENROLLED NURSING AUXILIARIES:

The company endeavors to train an additional 20 Enrolled Nursing Auxiliaries (ENA’s) in the Vaal River Operations per annum. The ENA course is a one year course delivering ENA’s on NQF level 4. An ENA’s responsibilities include a number of general, elementary nursing duties such as taking vital signs (observations), bathing patients, caring at the bedside, assisting with other activities of daily living, such as feeding patients unable to help themselves and assisting senior nurses and doctors in hospitals and clinics. This will be done in accordance with regulations as set out by the South African Nursing Council (SANC). The SAQA Act, 1995, accredits SANC as an ETQA in order to enforce quality assurance of Nursing Education in South Africa. Prospective candidates will have to meet the entry level requirements as prescribed by SANC and the Goldfields Nursing College. The ENA course is a one year full time course and after successful completion of the course the candidate is registered as an Enrolled Nursing Auxiliary.

VR ENROLLED NURSING AUXILIARIES – ACTUALS Q2, 2013 MALE

TOTALS

OVERALL

FEMALE

TOTAL HDSA

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

PLAN

ACTUAL

*Note: The overachievement is because of a roll-over of the 2012 candidates who completed their programme in April.

2.3.10

COMMUNITY ENGINEERING LEARNERSHIPS & APPRENTICES:

Engineering skills training will be provided to community members in the North West Provence to provide them with the opportunity to obtain formal qualifications, which they will be able to apply within the mining sector. The learners will acquire skills and knowledge to the level where they have been found capable to perform the work. This will imply that they will gain theoretical knowledge as per curriculum as prescribed by MQA (Mining Qualification Authority) as well as simulated practical tasks as required by die programme. The learners must meet the criteria set by AGA and also meet the MQA requirements to enter the Community Learnership programme. Learners were recruited from the surrounding areas where AGA operates with the assistance of the Department of Labour Centres. Preference was given to “shadow of the headgear” candidates when recruiting learners who have the correct qualifications to meet the entry level requirements.

VR ENGINEERING LEARNERSHIPS & APPRENTICES – ACTUALS Q2, 2013 MALE

TOTALS

OVERALL

FEMALE

TOTAL HDSA

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

AFRICAN

COLOURED

INDIAN

WHITE

TOTAL

PLAN

ACTUAL

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 47 of 128

2.4

EMPLOYMENT EQUITY PLAN

The company has put in place measures to respond to the requirements as outlined in both the Mining Charters (2002 and as amended in 2010) as well as in the MPRDA regulations. These have been aligned with the company’s business requirements so as to be sustainable into the future. The following is an outline of the above stated Mining Charter and MPRDA Regulations requirements: a) Mining Charter Requirement: The original Mining Charter scorecard which was designed to measure compliance requires the company to put in place measures to answer the following questions:  Has the company published its employment equity plan, and reported on its annual progress in meeting that plan?  Has the company published a plan to achieve a target for HDSA participation in management of 40% within five years, and is implementing this plan?  Has the company identified a talent pool and is it fast tracking it? The 2010 BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH AFRICAN MINING and MINERALS INDUSTRY provides as follows with regards to Employment Equity: “Workplace diversity and equitable representation at all levels are catalysts for social cohesion, transformation and competitiveness of the mining industry. In order to create a conducive environment to ensure diversity as well as participation of HDSA at all decision-making positions and core occupational categories in the mining industry, every mining company must achieve a minimum of 40% HDSA demographic representation at:     

Executive Management (Board) level by 2014; Senior management (EXCO) level by 2014; Core and Critical skills by 2014; Middle management level by 2014; Junior management level by 2014; and

In addition, mining companies must identify and fast-track their existing talent pools to ensure high level operational exposure in terms of career path programmes. The reporting period for all of the above-mentioned targets is March of the following year. For the purpose of reporting against the Mining Charter targets at the end of the reporting periods, the following definitions apply:  “Executive Management (Board)” shall be defined as follows: “Executive Management” shall mean “Top Management” in line with the Employment Equity Act reporting requirements and is based at the Corporate Office, save for the South Africa Region (SAR) Executive Vice President, who is based at the Potchefstroom Regional Office; and “Board” shall mean the AGA Board in terms of the company’s Articles of Association. The Board comprises South African and non- South African based members and will be so reported. (It should be noted that Top Management refers to the South African based managers reporting directly to the Chief Executive Officer and who are part of the company’s Executive Committee, i.e. the key decision makers of the company).  “Senior Management (EXCO)” shall be defined as follows: “Senior Management” “shall mean employees who are at Paterson Grade E- Band and reported as “Senior Management” in line with the Employment Equity Act reporting requirements; and” Exco” shall mean the SAR Exco comprising the SAR Executive Vice President and his direct reports based at the SAR Regional Office in Potchefstroom. AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 48 of 128

 Middle Management is stated as “Professionally Qualified” in line with the Employment Equity Act reporting requirements.  Core and Critical Skills are defined as all occupations within the Mining, Engineering, MRM and Metallurgy disciplines.  Corporate Office, while based in Johannesburg is a contributor to the SAR Operations, i.e., Vaal River and Vaal River Operations’ Talent Pool and the reports will reflect scenarios whereby it is included as well as excluded. (as per the guidance of the DMR).  “The Vaal River operation” comprises the following business units: Kopanang, Moab Khotsong, Great Noligwa, Vaal River Metallurgy, Vaal River AGA Health, Vaal River SA Regional Services, the South Africa Regional Office in Potchefstroom and the Vaal River Corporate Office portion which is proportionately divided between the Vaal River and West Wits operations, the newly acquired Mine Waste Solutions based in Stilfontein in the North West.  The Vaal River HDSA targets are also aligned to the company’s DoL 5 Year Employment Equity Plan leading to 2014 targets.

PROGRESS ACHIEVED BY MEASURE

Top Management (Board) Senior Management (Exco) Middle Management Junior Management

COMPLIANCE TARGET BY 2014 MC 2012 2012 Achieved

MC 2013 2013 Achieved MC 2014 2014 Plan

Weighting

The Mining Charter scorecard requirements are indicated below along with the AGA Vaal River (inclusive of Corporate Office) compliance as at end June 2013:

MC 2010

2010 Acieved

MC 2011

2011 Achieved

40%

20%

25.00%

40.0%

30.0%

40%

35%

44.4%

40%

20%

25.30%

25.00%

26.4%

30.00%

32%

35%

31.4%

40%

30%

43.70%

35.00%

43.4%

40.0%

46%

40%

46.2%

40%

56%

40%

51.20%

40.00%

52.6%

40.0%

53%

40%

52.7%

40%

64%

40%

15%

51.10%

20.00%

52.3%

30.0%

52%

35%

51.6%

40%

Core Skills

MPRDA Requirement: In terms of the MPRDA, REGULATION 46 (b) (v) states: The contents of a Social and Labour Plan must include a human resources development programme which must include the employment equity statistics which must be completed in the form of “Form S” contained in Annexure II and the mines plan to achieve the 10 per cent women participating in mining and 40 per cent historically disadvantaged South Africans (HDSA) participation in management within 5 years from the granting of the right or the conversion of the old order right. The following constitutes the company’s approach to the above mentioned questions.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

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The company submitted its five year Employment Equity (EE) Plan to the Department of Labour (DoL) in 2010 for the period August 2009-July 2014. This plan was used to develop the EE Plan in compliance with the MC requirements. The company is also required to report to the DoL on an annual basis, as well as to the DMR. The DoL EE reports are also posted on the company’s website on an annual basis. In terms of the Skills Development Act, the company submits its Annual Training report (ATR) th and the Workplace Skills Plan (WSP) on the 30 of June of each year. The Workplace Skills Plan outlines the process of identifying the talent pool and fast-tracking the HDSAs in line with the target as set in the EE plan. In developing the EE Plan the WSP and the ATR, the company embarks on consultations with the recognised trade unions as required by the EE and Skills Development Act. In light of the above, a process is in place to establish an additional forum ( Bi-Regional Employment Equity Steering Committee) to develop , implement and create awareness, to oversee the compliance obligations with regard to employment equity, to align stakeholders and develop a shared understanding and consensus concerning employment equity in the company, in alignment with the broader SP ( System for People) and BPF (Business Process Framework) transformation and change initiatives, collectively known as ONE , and to monitor employment equity targets , plans and progress. In addition, there are two monitoring structures, the SAR Management Committee and the AGA Board’s the Social, Ethics and Transformation Committee (Board Committee) whose terms of reference includes the company’s performance with respect to the Mining Charter. These two Committees meet (separately) once every quarter with the Board Committee reporting progress made in the area of Transformation and Human Resources Development to the Board on a quarterly basis. AngloGold Ashanti – Vaal River continuously engages in the following processes in an aim to address employment equity transformation challenges: Continuous Gap analysis  Special effort in the appointment of Senior Management  Enhancement of the Talent Pipeline aided by Mentorship and coaching  Additional development of skill through bursary scheme  Benchmarking of competitive remuneration for key skills  Role description and accountabilities In implementing the five years EE Plan, the following initiatives have been put in place during the period leading to 2014;  The recruitment, selection and appointment strategy will continue to apply a 60/40 short listing split in favour of HDSAs to increase the chances of HDSA appointments and enhance the achievement of EE targets;  Training and Development initiatives will be intensified through its management development programmes and other interventions with the purpose of strengthening HDSA representation in the talent pool;  Bursary Schemes and Development Programmes will strengthen the demographical representation in the long term, leading to 2014 targets. The Bursary take into account the EAP in order to promote the development and progression of the HDSA in line with the EE targets as outlined in this Plan;  Organised Labour engagement – targets contained in the EE Plan will be continuously monitored and reported on a monthly, quarterly and annual basis in consultation with organised labour.  Targets contained in the EE Plan will be continuously monitored and reported on a monthly, quarterly and annual basis.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

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2.4.1

The 2010 - 2014 Vaal River (VR) operations Employment Equity (EE) Plan aims to achieve the targets as outlined in the Amended Mining Charter of September 2010.

The following three (3) tables depict the AGA Board of Directors, AGA Top Management level (Board) based at Corporate Office in Johannesburg, and the SA Region Management Committee consisting of Senior Vice Presidents and Vice Presidents based at Potchefstroom Office. TABLE A:- ANGLOGOLD ASHANTI BOARD OF DIRECTORS AS AT 30 JUNE 2013 Males

Occupational Levels

Females

Foreign National

Male

Total

2013 MC % HDSA Targets

2013 % HDSA Actual

AFRICAN

COLOURED

INDIAN

AFRICAN

COLOURED

INDIAN

WHITE

MALE

FEMALE

AGA BOARD

35%

46%

GRAND TOTAL

27%

46%

100%

35%

46%

Note: It is well noted that if the non-South African Directors are excluded on the total actual figure, the HDSA representation stands at 83%. TABLE B:- ANGLOGOLD ASHANTI TOP MANAGEMENT LEVEL (EXCO) AS AT 30 JUNE 2013 Males

Occupational Levels

Females

Foreign National

Male

Total

2013 MC % HDSA Targets

2013 % HDSA Actual

AFRICAN

COLOURED

INDIAN

AFRICAN

COLOURED

INDIAN

WHITE

MALE

FEMALE

Top Management

35%

44%

GRAND TOTAL

11%

22%

33%

22%

100%

35%

44%

It should be noted that the Top Management Structure operates within all areas of AngloGold Ashanti, including West Wits. The 44% % HDSA achievement on Top Management is calculated at the actual HDSA representation for AngloGold Ashanti`s Top Management structure based at the Corporate Office, not in the Vaal River. TABLE C:- SA REGION MANAGEMENT COMMITTEE LEVEL AS AT 30 JUNE 2013 Foreign Males Females Male 2013 MC 2013 % National Occupational Levels Total % HDSA HDSA AFRICAN COLOURED INDIAN AFRICAN COLOURED INDIAN WHITE WHITE MALE FEMALE Targets Actual Top Management

35%

57%

GRAND TOTAL

43%

14%

43%

100%

35%

57%

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

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The following reflect the EE Plan for the Vaal River operations for the year 2013. EE PLAN : 2013 TABLE 2.4.1D: TOTAL VAAL RIVER 2013 PLAN Male

Occ. Levels African Senior Management Prof.qual. - Mid Mngmnt. Skilled Technical Semi-skilled U/skilled & Def. dec. making Total Permanent Non-Permanent Employees GRAND TOTAL

Coloured

Female Indian

African

Coloured

Indian

White

Male

Foreign National

White

Male

Total

Female

14% 23% 41% 54% 51% 49%

4% 3% 2% 0% 1% 1%

3% 3% 0% 0% 0% 0%

6% 9% 9% 8% 16% 13%

3% 1% 1% 1% 1% 1%

1% 2% 1% 0% 0% 0%

5% 12% 8% 2% 1% 3%

62% 45% 32% 2% 1% 8%

2% 2% 6% 33% 29% 25%

0% 0% 0% 0% 0% 0%

20% 49%

0% 1%

0% 0%

49% 13%

0% 1%

0% 0%

15% 3%

16% 8%

0% 25%

0% 0%

2013 Mining Charter % HDSA

% HDSA Target

Targets

100% 100% 100% 100% 100% 100% 100% 100%

35% 40% 40%

No Target

36% 53% 62% 65% 70% 67% 84% 67%

The following tables reflect the status report with respect to Vaal River operations percentage of HDSA as at end 30 June 2013 against the targets as set in the 2013 Mining Charter. The status report also highlights Vaal River Operations including and excluding Corporate Vaal River operations. VAAL RIVER: WORKFORCE PROFILE AS AT 30 June 2013 EE ACTUAL TABLE 2.4.1E: TOTAL VAAL RIVER INCLUDING CORPORATE OFFICE - 2013 ACTUAL AGAINST TARGETS AS PER TABLE 2.20.D IN THE SLP Male

Foreign National

African

Coloured

Male Indian

African

Coloured

Indian

White

Male

Female

Senior Management

10.9%

2.3%

0.8%

1.6%

10.9%

57.8%

8.6%

Prof.qual. - Mid Mngmnt.

17.4%

2.3%

7.0%

1.2%

1.6%

16.0%

48.5%

Skilled Technical

34.0%

1.1%

0.0%

8.7%

0.5%

0.3%

8.4%

Semi-skilled

53.5%

0.4%

0.0%

10.3%

0.3%

0.0%

U/skilled & Def. dec. making

57.4%

0.3%

0.0%

14.3%

0.0%

Total Permanent

50.6%

0.6%

0.1%

11.8%

0.2%

Non-Permanent Employees

17.2%

4.0%

1.0%

15.2%

GRAND TOTAL

50.4%

0.6%

0.1%

11.8%

Occupational Levels

Female

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Total

Actual % HDSA

2.3%

100%

31.3%

2.3%

1.6%

100%

47.7%

39.2%

7.5%

0.2%

100%

53.1%

1.6%

2.2%

31.5%

0.1%

100%

66.2%

0.0%

0.1%

1.0%

26.4%

0.5%

100%

72.1%

0.1%

2.6%

9.7%

24.0%

0.4%

100%

65.9%

1.0%

2.0%

18.2%

37.4%

2.0%

100%

58.6%

0.3%

0.1%

2.7%

9.9%

23.8%

0.4%

100%

65.9%

Page 52 of 128

TABLE 2.4.1F: TOTAL VAAL RIVER EXCLUDING CORPORATE OFFICE - 2013 ACTUAL AGAINST TARGETS AS PER TABLE 2.20.E IN THE SLP Occupational Levels

Male

Female

Male

Foreign National

Total

Actual % HDSA

African

Coloured

Indian

African

Coloured

Indian

White

Male

Female

Senior Management

15.5%

2.8%

1.4%

2.8%

0.0%

8.5%

69.0%

0.0%

100%

31.0%

Prof.qual. - Mid Mngmnt.

18.8%

2.8%

1.5%

6.6%

0.4%

1.1%

14.9%

52.7%

1.1%

0.0%

100%

46.2%

Skilled Technical

34.4%

1.1%

0.0%

8.5%

0.3%

0.1%

8.0%

39.8%

7.6%

0.2%

100%

52.5%

Semi-skilled

53.4%

0.4%

0.0%

10.3%

0.2%

0.0%

1.6%

2.3%

31.7%

0.1%

100%

65.9%

U/skilled & Def. dec. making

57.4%

0.3%

0.0%

14.3%

0.0%

0.1%

1.0%

26.4%

0.5%

100%

72.1%

Total Permanent

51.1%

0.6%

0.1%

11.8%

0.2%

0.1%

2.3%

9.5%

24.2%

0.3%

100%

66.0%

Non-Permanent Employees

23.1%

4.6%

0.0%

18.5%

1.5%

0.0%

12.3%

38.5%

0.0%

1.5%

100%

60.0%

GRAND TOTAL

51.0%

0.6%

0.1%

11.8%

0.2%

0.1%

2.3%

9.6%

24.1%

0.3%

100%

66.0%

Vaal River operations have progressively achieved their targets as set in the 2013 Mining Charter. As at the end of Q2 of 2013, the Vaal River operations have achieved 31.3% of HDSA in senior management, 47.7% in middle management, 53.1% in junior management and 52%in core and critical skills. This shows a great progress with respect to the 2013 Mining Charter targets. Business Units in the Vaal River operations have accordingly put in place EE Plans with set targets which aim to address the obligations as contained in the Amended Mining Charter. Business Units` actual achievements are enclosed in this report. The Vaal River operations have been able to achieve positive trends in advancing equitable representation in the management structures as well as gender representation as can be seen in the graph below with respect to progression of HDSA in management occupational levels, core and critical skills, and female representation since the year 2010 - 2013.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 53 of 128

Progress % HDSA: 2010 - 2013 60.0%

50.0%

% HDSA

40.0%

30.0%

20.0%

10.0%

0.0%

Top Management

Senior Management

Middle Management

Junior Management

% Core Skills

% Females

2010

25.0%

43.7%

51.2%

51.1%

12.0%

2011

40.0%

26.4%

43.4%

52.6%

52.3%

12.6%

2012

40.0%

32.1%

46.1%

52.5%

52.4%

14.0%

2013

44.4%

31.3%

47.7%

53.1%

51.6%

15.0%

Graph 1: Progress HDSA representation from 2010 –2013

The above graph gives an indication that Vaal River operations are making positive progress towards achievements of its transformation commitments. The Vaal River operations have achieved the 2012 HDSA targets in all of its occupational levels measured by the Mining Charter and there is great progress in achieving the 2013 Mining Charter targets. Even though these achievements have been positive and significant in compliance with the Mining Charter obligations, the company realises that there is a need to maintain these positive achievements progressively towards 2014 and beyond.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 54 of 128

Vaal River operations adheres to the Chamber of Mines (COM) guidelines, which advises that, to comply with “representative of demographics” white women should only be accounted for a maximum of 6% contribution to the HDSA population. Applying this guideline, the following graph depicts a comparison between the total percentage of HDSA representation per occupational level for Vaal River operation and the percentage HDSA representation when white females are calculated at maximum 6%. 60.0%

53.1% 50.0%

50.7%

47.7%

52.0% 52.0%

40.0%

37.7% 31.3% 30.0%

26.4%

20.0%

15.0% 15.0% 10.0%

0.0% Senior Management

Middle Management

Junior Management

Actual % HDSA All

% Core Skills

% Females

% HDSA at Max 6% white females

Graph 2: HDSA representation with white females calculated at maximum 6%

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Page 55 of 128

2.4.2

Core and Critical Skills

The targets as set in the Amended Mining Charter for Core and Critical skills are as follows:  15% by end of 2010  20% by end 2011  30% by end 2012  35% by end 2013; and  40% by end 2014. For the purpose of this submission, core and critical skills are defined as occupations within the Mining, Engineering, MRM and Metallurgy disciplines. The company’s skills development and employment equity strategies are aimed at achieving a demographically representative workforce. To this end, the company’s strategy in this regard is guided by the provisions of the Skills Development and Employment Equity Acts in terms of both planning and reporting, including with respect to “Core and Critical skills”. Through the company’s participation and collaboration with (i) the Mining Qualification Authority, (ii) compliance with its obligations pertaining to the Workplace Skills Plan and the Annual Training Report, (iii) conducting of skills audits (iv) initiatives to identify scarce and critical skills (through participation in the Sector Skills Plan and Scarce Skills initiatives) intensive attempts are made to improve the HDSA representation in all core and critical skills occupations which is still lagging due to the skills challenges faced by the industry in this respect. The human resources development interventions to address the abovementioned challenge include a variety of initiatives such as (i) Management Trainee Programmes, (ii) Bursary Schemes, (iii) Trainee Programmes, and Learnerships which is contained in the HRD section of this SLP Report. In reporting the identified hard to fill vacancies as we have reported on our Workplace Skills Plan submitted to the Mining Qualifications Authority (MQA), Form R in the annexures depicts critical and scarce skills for the period ending 2013. The following table reflects the status with respect to Core function for total Vaal River operation as at 30 June 2013. TABLE. 2.4.2 A: TOTAL VAAL RIVER CORE FUNCTION AS AT 30 June 2013 Male Occ. Levels

Female

AFRICAN

COLOURED

INDIAN

Senior Management

Prof.qual. - Mid Mngmnt.

Skilled Technical

638

Semi-skilled

2110

U/sklled & Def. dec. making Total Permanent Non-Permanent Employees GRAND TOTAL

Male

AFRICAN

COLOURED

INDIAN

4285

909

7095

1082

7095

1082

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

WHITE

Foreign National Total

2013 MC % HDSA Targets

VR % HDSA Actuals

WHITE

MALE

FEMALE

25.5%

153

269

40.1%

876

180

1829

1559

3871

1977

7319

1226

3724

13339

62.5%

100.0%

1226

3724

13340

62.5%

42.2% 35%

57.5% 71.4%

Page 56 of 128

TABLE. 2.4.2 B: TOTAL VAAL RIVER SUPPORT FUNCTION AS AT 30 June 2013 Occupational Levels

Male

Female

Male

Foreign National

Total

Actual % HDSA

35.1%

306

54.2%

146

781

78.6%

1265

92.7%

African

Coloured

Indian

African

Coloured

Indian

White

Male

Female

Senior Management

Prof.qualified. - Mid Management

126

Skilled Technical

249

166

172

Semi-skilled

639

430

U/skilled & Def. dec. making

142

192

397

84.6%

Total Permanent

1028

819

334

343

148

2826

80.0%

58.2%

1045

834

351

380

150

2870

80.8%

Non-Permanent Employees GRAND TOTAL

2.4.3

Vaal River: Women in Mining workforce as at end June 2013

The Vaal River operation commits to employing women, to achieve the targets as set in the Mining Charter and will continue to develop females. Thus, adhering to the guidelines with respect to Women in Mining as set in the Mining Charter by committing to 10% women representation in the total workforce. The approved employment equity plan for the Vaal River operations includes women representation in the total workforce. The integration of women into the entire workforce and initiatives which are aimed at creating a conducive environment for women is firmly embedded in the Vaal River operations. The Vaal River Operation has progressed significantly towards achieving the 10% target women in mining as set by the Mining Charter by exceeding the target in achieving 14% as at the end of June 2013. Notwithstanding the fact that the mining environment remains challenging for women, the Vaal River Operations has adopted a variety of initiatives to support the integration of women such as (i) change houses for women, (ii) promoting an environment free from sexual harassment, (iii) private and secure ablution facilities underground and (iv) working with industry to address issues of protective clothing for women. The following tables reflect the total numbers with respect to Women in Mining in the Vaal River operations as at June 2013. TABLE 2.4.3.A: VAAL RIVER: WOMEN IN MINING Occ. Levels

Female

Total Local

Foreign National

Senior Management

Prof.qual. - Mid Mngmnt.

148

157

Skilled Technical

228

220

469

474

Semi-skilled

529

628

635

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Female

Grand Total

% WIM incl. Conventional functions

15% of women against the total workforce of 16165

Page 57 of 128

TABLE 2.4.3.A: VAAL RIVER: WOMEN IN MINING Occ. Levels

Female A

Foreign National

Total Local

Female

Grand Total

U/skilled & Def. dec. making

1101

1108

1149

Total Permanent

1901

414

2373

2438

Non-Permanent Employees GRAND TOTAL

1916

432

2409

2476

% WIM incl. Conventional functions

The following table reflects the total numbers with respect to Women in mining in the core function at Vaal River operations as at 30 June 2013. TABLE 2.4.3.B: VAAL RIVER: WOMEN IN MINING - CORE FUNCTION Female

Occ. Levels

Total Local

Foreign National Female

Senior Management

Prof.qual. - Mid Mngmnt.

Skilled Technical

113

114

Semi-skilled

104

110

U/skilled & Def. dec. making

909

914

952

Total Permanent

1082

1174

1220

1082

1175

1221

Non-Permanent Employees GRAND TOTAL

Grand Total

% WIM core function only

7.5% of women in women in core function against the total workforce of 16165

The following table reflects the total numbers with respect to Women in Mining in the support functions at Vaal River operations as at 30 June 2013. TABLE 2.4.3.C: VAAL RIVER: WOMEN IN MINING - SUPPORT FUNCTION Female

Occ. Levels Senior Management

Total Local

Foreign National Female

Grand Total

Prof.qual. - Mid Mngmnt.

108

116

Skilled Technical

166

172

356

360

Semi-skilled

430

524

525

U/skilled & Def. dec. making

192

194

197

Total Permanent

819

334

1199

1218

Non-Permanent Employees

GRAND TOTAL

834

351

1234

1255

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

% WIM Support function only

7.7% of women in women in core function against the total workforce of 16165

Page 58 of 128

The company’s Employment Equity strategy with respect to Women in Mining is to accord women an equal opportunity to be employed in all occupations, depending on their ability to match the inherent requirements of job as per the Employment Equity guidelines. Further steps have been put in place to further support integrating women in the workplace. Section 19 Audit as conducted in terms of the Employment Equity Act are used to identify the barriers that prevents women from advancing their careers in the company and to develop affirmative action measures, aimed at assisting women to achieve their career goals within the company. These audits are an important barometer to ascertain and identify barriers to employment equity and supports robust implementation of affirmative action measures. Going forward the company will from time to time carry out Section 19 Audit as required by the Employment Equity Act. These audits are an important barometer to ascertain and identify barriers to employment equity and supports robust implementation of affirmative action measures.

2.4.4

Vaal River business units’ progress

Business Units in the Vaal River operations have accordingly put in place EE Plans with set targets which aim to address the obligations as contained in the Amended Mining Charter. The following tables below reflect the percentage targets and the achievements of the Business Units within Vaal River operations as at the end of quarter two (2) of 2013. The status report herein, forms part of the Form S as required to be reported in the Mining Charter. Number of employees (NOTE: Place an employee in the category that best resembles his/her job. Do not double count) Category

African

Coloured

Indian

White Female

Subtotals (A)

White Male

Grand totals (B)

Male

Female

Male

Female

Male

Female

Top management

Senior management

114

Middle Management

100

274

279

553

Junior Management

887

228

220

1386

1022

2408

Core & Critical Skills (1)

6395

1008

7450

160

7610

Total of the above

7397

1280

335

9154

1538

10692

(1) These are skills necessary and inextricably linked to day-to-day operations OR skills that enhance the performance of an operation and are in scarce supply. This could include artisans, engineers incl rock engineers, professionals (i.e. recognized by a professional body), specialists (e.g. surveyor, safety, geologist, metallurgist, winding engine driver, environmental, etc.), technologists, technicians, and persons with mining specific qualifications or licenses. Percentage HDSAs at different levels Subtotals as in table above (A)

Grand totals as in table above (B)

A as percentage of B

2010

2011

2012

2013

2014

Maximum

Target

Points (office use only)

Top management

57.14

20%

25%

30%

35%

40%

Senior management

114

35.09

20%

25%

30%

35%

40%

Middle Management

274

553

49.55

30%

35%

40%

Junior Management

1386

2408

57.56

40%

Core and Critical Skills

7450

7610

97.90

15%

20%

30%

35%

40%

TOTAL

9154

10692

85.62

Awarded (2)

2) Note: One point will be deducted for every full 0.5% below target AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

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SECTION 3: COMMUNITY DEVELOPMENT Mining Charter: Section 2.6 of the amended 2010 BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER FOR THE SOUTH AFRICAN MINING AND MINERALS INDUSTRY which provides as follows: “Mine communities form an integral part of mining development, there has to be meaningful contribution towards community development, both in terms of size and impact, in keeping with the principles of the social license to operate. Stakeholders must adhere to the following:  Consistent with international best practices in terms of rules of engagement and guidelines, mining companies must invest in ethnographic community consultative and collaborative processes prior to the implementation/development of mining projects;  Mining companies must conduct an assessment to determine the developmental needs in collaboration with mining communities and identify projects within the needs analysis for their contribution to community development in line with Integrated Development Plans (IDPs), the cost of which should be proportionate to the size of investment.” The Mining Charter scorecard requirements are indicated below along with the AGA Vaal River compliance to date: SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER FOR THE SOUTH AFRICAN MINING INDUSTRY- AGA : VAAL RIVER

ELEMENT 7 Mine community development

DESCRIPTION Conduct ethnographic community consultative and collaborative processes to delineate community needs analysis

MEASURE Implement approved community projects in line with IDP's of local and major labour sending municipalities.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

COMPLIANCE TARGET BY 2014

PROGRESS ACHIEVED BY 2010 Actual

2011 Actual

2012 Actual

2013

Up-to-date project implementation.

Projects were selected in the Host Communities and Labour sending areas which are listed and aligned with the IDPs.

Budget for LED, ED and Social projects were secured for 2012 leading up to 2014 for implementation. The future Forum was established.

Budget for LED, ED and Social projects were secured for 2012 leading up to 2014 for implementation. The future Forum was launched.

Implement of community projects in line with IDP's of local and major labour sending municipalities and as committed in company SLP.

2014

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REGULATION 46 (c) (iii) of the MPRDA requires that the contents of a social and labour plan must include: c) A local economic development programme which must includei. The social and economic background of the area in which the mine operates; ii. The key economic activities of the area in which the mine operates; iii. The impact that the mine would have in the local and sending communities; iv. The infrastructure and poverty eradication projects that the mine would support in line with the Integrated Development Plan of the area in which the mine operates and the major sending areas; v. The measures to address the housing and living conditions of the mine employees. AngloGold Ashanti agreed on a strategic framework to facilitate and realize the company value that “Communities and Societies in which we operate will be better off for AngloGold Ashanti having been there.” The main guidelines to the framework are:  Focus on the optimum resolution of cross discipline projects / issues, based on best consulting practice underpinned by robust project management principles.  Joint venture projects at scale, given agreed selection criteria, to ensure alignment with regulatory requirements as set out in the Mining Charter and related codes of good practice.  Align and incorporate the development strategies of stakeholders e.g. Spatial and Current Integrated development plans. Key principles when deciding on the nature of involvement in IDP, LED, ED and Infrastructure projects will be:  Sustainable and be continued beyond the life of mine  Meaningful and responsive to the prevailing socio-economic conditions  Encourage the involvement and self-reliance of communities  Realistic and feasible for AGA  Collaboration between stakeholders and especially between peers.

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3.1

Social and Economic Background Information of Host and Labour Sending Communities

The company operations in the Vaal River are located within Matlosana local Municipality and our largest labour sending area is OR Tambo district municipality. The socioeconomic information of Matlosana and OR Tambo municipalities are summarised below respectively.

3.1.1.

Matlosana Municipality

The Vaal River operations are located near the towns of Klerksdorp and Orkney in the North West Province. Klerksdorp houses the Matlosana City Council, while the Dr Kenneth Kaunda District Council is located in Orkney. The Matlosana municipality comprises the following areas: Klerksdorp, Stilfontein, Orkney and Hartebeesfontein.

3.1.2.

Labour Sending Area: OR Tambo District Municipality

The Eastern Cape represents one of AGA’s major labour sending areas and to a lesser degree, with countries such as Lesotho and Mozambique. For the purpose of this SLP report and the Mining Charter requirements, focus is on the Eastern Cape and in particular the OR Tambo District Municipality. This does not mean that the AGA only focuses in OR Tambo. The company supports/contributes to projects in many other parts of the Eastern Cape and Kwa Zulu Natal including labour sending areas in Lesotho, Mozambique and Swaziland. The socio-economic information of OR Tambo Municipalities are summarised below. For the South African operations the OR Tambo District municipality is the largest labour sending communities. The OR Tambo district is located in the Eastern Cape; it covers 80 per cent of what used to be known as Transkei, and comprises seven local municipalities viz:     

King Sabatha Dalinyebo Local Municipality; Nyadeni Local Municipality; Port St John’s Local Municipality; Ngquza Hill Local Municipality; Mhlontlo Local Municipality

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3.2

Community Consultation and Involvement/ Stakeholder Engagement

In advancing, tracking progress and ensuring implementation and delivery of our SLP commitments AGA SAR continued with its community and stakeholder engagements initiatives to ensure continuous synergy and collaborative work among key stakeholders in our commitment and responsibility to better the lives of all. To this end, the following meetings were held with the various stakeholders during the first six months of 2013: 

   

  

  

AGA SAR delivered the first Local Economic Project of 2013, in the form of Sonata Junior Primary School in Libode, Eastern Cape. This is part of the Social and Labour Plan commitments for the duration of 2010 to 2014. The school is delivered within an MoU signed with the NUM, OR Tambo Municipality, the Department of Mineral Resources and the Department of Basic Education. The newly built school, previously a mud school was handed over to the Minister Susan Shabangu and Minister Angie Motshekga by the SAR Executive Vice President Mike O’Hare. The Minister of Basic Education made a special plea to AGA SAR to assist in addressing the mud schools eradication in the Eastern Cape. She requested AGA SAR to share and help them duplicate AGA’s high quality, high speed and within budget delivery model which the Department has an interest in integrating in their nationwide school built project. The first Future Forum Meetings were held and attended by representatives from the NUM, UASA and Solidarity. A copy of the Constitution confirming the Future Forum establishment in both regions were submitted as per statutory requirement to the Department of Mineral Resources. Owing to the delivery turn-around time of our infrastructure development projects the Gauteng MEC for Integrated Infrastructure, MEC Qedani Mahlangu has requested AGA SAR to share some of its best practices with her Department which is responsible for the micro and macro roll out of built infrastructure projects in the Province. AGA SAR started off the year well by identifying and funding SI Projects in Merafong, Matlosana and OR Tambo municipality, with a total of over R3.3 million disbursed to qualifying projects. Community cheque hand-over events to present cheques of over R100 000 to NGOs and Community Based Organisation were well attended and applauded by both recipients and present community members. This has contributed to relationship building and strengthening between AGA, Government and communities. AGA SAR hosted a high profile and analysts investor visit from for USA Investor and a group of investors and analysts. Both visits were hosted at Mponeng, Moab Khotsong and the ROC in West Wits. AGA was invited to the Gauteng Department of Health Budget Vote Speech at which MEC Hope Papo called for more public private partnerships to help address the Province’s health challenges. AGA SAR has already partnered with the Department as reported in this report. AGA SAR hosted successful project launches in the West Wits area where a Computer Laboratory and a Science Laboratory were handed over by AGA to the Department of Mineral Resources and the Department of Education represented received by Deputy Minister of Mineral Resources, MPL Godfrey Oliphant, Gauteng MEC for Education, MPL, Barbara Creecy and the Executive Mayor of Merafong, Councillor Maphefo Mogale-Letsie. The facilities are part of the AGA ‘s Community Human Resources Development Social and Labour Plans projects for our five year Social and Labour Plan commitments in the West Wits area for the years 2010 to 2014. The facilities which will contribute immensely towards the support and development of science and technology studies were handed over by Billy Mawasha Senior Vice President Underground Operations and Senior Vice President Sustainability Simeon Mighty Moloko. AGA SAR handed over the Carletonville Hospital Medical Step-Down Facility and Kideo Wards to Minister of Health, MP Aaron Motsoaledi, Deputy Minister of Mineral Resources, MP Godfrey Oliphant, Gauteng MEC for Health, MPL Hope Papo and the Executive Mayor of Merafong, Councillor Maphefo Mogale-Letsie. This is one of the Social and Labour Plan projects for the years 2010 to 2014, contained in the Merafong Municipality’s Integrated Development Plans. The Merafong Local Municipality and Department of Mineral Resources represented by Executive Mayor Maphefo Mogale-Letsie and Deputy Minister Godfrey Oliphant received the Khutsong Community Park which was also launched on 14 June 2013 in Khutsong attended by community members. The park also forms part of the West Wits Social and Labour Plans. The Carletonville Medical Step-Down Facility and Kideo Wards at Carletonville Hospital has been completed and were launched on 14 June 2013 by the Deputy Minister of Mineral Resources MP Godfrey Oliphant, the Minister of Health MP Aaron Motsoaledi, Gauteng MEC for Health MPL Hope Papo.

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

AGA SAR received positive media coverage on the coverage of Social and Labour Plan Project launches for Wedela Technical High School Science and Computer Laboratories, the Carletonville Hospital Medical Step-Down Facility and the Khutsong Community Park. We received coverage for our Tera Pecena Youth Day Project was covered by Aganang FM. Additional media coverage was received from OFM for the AGA SAR blanket drive. In addition to this we received positive media coverage for the AGA and OFM Winter Blanket Drive. The Minister reported during the Department of Mineral Resources Budget Vote Speech that public comments from critical stakeholders have been received and being considered for incorporation into the Act which is currently under review and will be amended.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

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3.3

Community Development th

On the 24 July 2012 the company again received a letter from the DMR which directed it to again review its SLP that was submitted to the DMR on the 15 of November 2011. After the engagements with the office of the DMR North West to bear any positive results with respect to the point of difference between it and the officials of the DMR the company escalated its queries to the office of the Deputy Minister for mediation. The parties met in August 2012 with the office of the Deputy Minister and agreed that the company should further consult with the Matlosana Municipality with respect to the projects which the DMR North West Office rejected, namely, 1.Extension of the Market Hall, Upgrading of the Oppenheimer Sports Centre and Hawkers Shelter projects. The Matlosana Municipality and company agreed on the following replacement projects which were subsequently approved by the DMR in their letter dated 5 December 2012 in which the company’s SLP was provisionally approved pending the submission of an updated submission of the SLP which the company submitted on 5 March 2013.    

Swimming Pool Tigane (LED 13) School Sports Facilities– Tigane (LED 14) Township/Land Development – Khuma (LED 15) Sanitation – Khuma and Kanana (LED 16)

3.3.1

LED Projects

The following is a summary of the progress made against the projects as committed in the 2010-2014 SLP as revised and re-submitted to the DMR.

Project Name: LED 1 Slaughter and Meat Processing Plant

Project Objectives

2012-2014: Total Budget

Compile a bankable business plan supported by business analysis to verify and outline strategies, action plans and secure investor commitments to the value of approximately 100 Million Euro to establish and implement an international competitive slaughter and meat processing plant

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

R5m

Socio-economic impact of the project New industry beyond mining based on competitive and comparative advantages of the host community with considerable up and down stream linkages to cooperative & commercial farming. Creation of about 500 jobs once the project is completed

Milestones achieved in 2013 The project was dormant given the difficulties in meeting several complex governance compliance issues of the respective stakeholders, even after involvement of National Treasury and advises by the audit committee and procurement sections of the District Council. The intervention by the Provincial Treasury after a meeting with NW Premier has not release the impasse and the project stakeholders has been advised that if significant progress is not achieved before Sep 2013 the project will be transferred to the next SLP window.

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Project Name: LED 2 Enterprise Development Center (ORT)

Project Objectives Develop SMMEs and meet local procurement and associated empowerment targets embedded in the mining charter by establishing the Enterprise Development Center to identify, train, support and mentor entrepreneurs/enterprise development and link procurement profiles of stakeholders with the relevant regions’ demand profile.

2012-2014: Total Budget R10m

Socio-economic impact of the project Creation of 205 enterprises over a 3 year period which has the potential to deliver jobs at an estimated rate of 2.5 jobs per enterprise (400).

Milestones achieved in 2013 A Memorandum of Agreement was signed between OR Tambo, NUM and AGA. The scope and key performance areas of the preferred service provider was agreed with stakeholders (NUM, Cosatu, NAFCOC & Council) after several open community workshops and steering committee meetings and a service level agreement entered into between OR Tambo, NUM and AGA and the service provider. OR Tambo Municipality has identified office space for the ED Park.

LED 3 Enterprise Development Center (VR )

Community Centres:

Develop SMMEs and meet local procurement and associated empowerment targets embedded in the mining charter by establishing the Enterprise Development Center to identify, train, support and mentor entrepreneurs/enterprise development and link procurement profiles of stakeholders with the relevant regions’ demand profile. To enable the communities to perform their social functions in their residential areas instead of in nearby towns.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

R15m

Creation of 205 enterprises over a 3 year period which has the potential to deliver jobs at an estimated rate of 2.5 jobs per enterprise (513).

Application for additional funds was lodged Job Fund to match the R18m budgeted for this project to close the funding gap in line with the objective is to create 205 enterprises over a 3 year period which will deliver jobs at an estimated rate of 2.5 jobs per enterprise (513). Letter of support for the concept was obtained from Matlosana Council. Jobs Fund application was lodge to obtain the funding required to launch the project at maximum impact levels.

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2012-2014: Total Budget R2m

Project Name:

Project Objectives

LED 4 Community Centers (MQH)

To enable the communities to perform their social functions in their residential areas instead of in nearby towns.

LED 5 Community Centers (ORT)

To enable the communities to perform their social functions in their residential areas instead of in nearby towns.

R2m

LED 6 Schools / Education Facilities

Assist government in its plans to improve teaching conditions and create an environment that is condusive to producing better results and students.

R12m

Vaal Reefs Technical High LED 7 Solid waste management system

To establish a solid waste sites to replace current sites which is at capacity and to generate alternative energy for cleaner healthier communities?

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Socio-economic impact of the project Rammulotsi has a population of about 30 000 households who will be impacted by this project.

Milestones achieved in 2013 This project was subsequently rejected by the Municipality but was later reinstated after a Council resolution to this effect. A new plan has been put in place to deliver the project.

An average village has about 1000 households who stand to benefit from the project.

The project is scheduled beyond the reporting period

The movement of people from rural to urban areas makes it difficult for urban schools to cope with the increasing number of learners. More than 10 000 learners will benefit from the upgrading and additional classes planned for the Vaal River area. Thus contributing to the better results.

An agreement has been reached with the department of North West Education and the District with respect to the seven schools that should benefit from this initiative. So far the following progress has been made; Bill of Quantities (BOQ) completed at Vuyani Mawethu Secondary School (Khuma 5 classrooms), Arebokeng Primary School (Kanana 5 classrooms), Thea Merafe Primary School (Jouberton 4 classrooms) The following professional consultants have been appointed for building of these facilities: • Quantity Surveyor • Electrical engineer • Geo – Tech engineer. At Vaal River refurbishment is at 90% complete.

The health and energy benefits of this project will extend to the whole community of the City of Matlosana.

The project is in feasibility stage and its date of completion is beyond the reporting period

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Project Name: LED 8 Schools (ORT)

1. Ludeke Primary

2. Sonata Junior Primary School

Project Objectives Assist government in its plans to improve teaching conditions and create an environment that is conducive to producing better results and students.

2012-2014: Total Budget R6m

Assist government in its plans to improve teaching conditions and create an environment that is conducive to producing better results and students. Four additional classrooms were built at a cost of R1.5 million. Building 6 classrooms, administration block and a block of toilets for students and teachers to eliminate mud school and improve educational outcomes as stated above.

LED 9 Urban Planning & Formalisation of non-urban AGA Land & Property Holdings

To incorporate the mine communities into the spatial and urban planning of the greater Matlosana Municipality, so as to prepare communities viability post the closure of mines.

LED 10 Agricultural Projects

To foster the spirit of entrepreneurship and create jobs in particular for women, youth and the disabled, as well as to develop the capacity of cooperative / project owners to run commercially viable agricultural projects.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Socio-economic impact of the project It is estimated that more than 20 000 learners will benefit from our school projects which include the building new schools (replacing mud schools) additional classrooms to existing schools and building of science laboratories.

Milestones achieved in 2013 The project is on track. For individual projects see below. Bill of Quantities completed for Bolani Primary School and the tenderers have been invited.

Project was completed and launched in 2012.

R14m

R4m

To restore the dignity of the pupils, teachers and community as well as reducing the distance the learners travelled to school. The total capacity of this school is over 240 learners per annum. This project will connect the bulk services of the mine and that of the local municipality. The revenue stream for the municipality will improve and will also merge the mining villages with the existing towns. 2144 mine houses will be incooperated to the Vaal River area. Normalisation mining areas It is envisaged that a cooperative of about 20 local youth and women will benefit from this project.

Project was launched on the 3 April 2013 by the Minister of Mineral Resources Ms. Susan Shabangu, Minister of Basic Education Mrs Angie Motshekga and South African Region Chief Operating Officer Mr. Mike O’ Hare. AGA appointed a service provider to help it in the formalisation process.

A number of service providers made presentations to AGA. Two service providers were visited to determine the viability of the project, namely, Food and Trees for Africa and Umtali. Their programmes and models of doing business have so far been found satisfactory.

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Project Name:

Project Objectives

2012-2014: Total Budget R100k

Socio-economic impact of the project The nature the spirit of entrepreneurship amongst the youth, while at the same time contributing towards a cleaner and healthier environment. To enable informal car wash businesses within communities in which we operate to be have successful car wash businesses by erecting formal structures, skills development and training, and to offer mentorship programmes for sustainable job creation purposes. An estimated 50 000 young people per year will benefit from this project.

Milestones achieved in 2013

LED 11 Tlokwe Compost

To financially support the upcoming entrepreneurs through an interest free loan scheme in establishing a compositing plant.

Led 12 Youth Multi Car Wash

The objective of the project is to formalise the car wash enterprises in Matlosana by providing grant funding to ensure formal structures and appropriate equipment to youth cooperatives are available with the assistance of the local authorities.

R1m

LED 13 Swimming Pool Tigane

To enhance a culture of sports in the youth of the community and to reduce youth delinquency, which will ultimately contribute towards youth development.

R2.5m

LED 14 Schools Sports Facilities

To enhance a culture of sports in the youth of the community and to reduce youth delinquency, this will ultimately contribute towards youth development.

R1.5m

An estimated 3 000 young people will benefit per year from the facilities.

The project is one of the new projects replacing the ones that were rejected by the DMR. The project is in feasibility stage and its date of completion is beyond the reporting period.

LED 15 Khuma Township Development

To assist the Matlosana Municipality in getting an alternative land to resettle people currently residing in an informal settlement not properly demarcated in terms of township planning requirements. To eradicate the bucket system and contribute towards improved health and hygiene of community members.

R3.5m

1500 residents will be resettled in a properly demarcated area that will result in them having access to clean water, electricity and housing into the future.

The project is one of the new projects replacing the ones that were rejected by the DMR. The project is in feasibility stage and its date of completion is beyond the reporting period.

R5m

This infrastructure project will restore dignity and privacy to an estimated 5 500 residents of respective townships and improve their quality of life.

The project is one of the new projects replacing the ones that were rejected by the DMR. The project is in feasibility stage.

LED 16 Sanitation Khuma and Kanana

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Business plan and purchase agreement for the business was concluded with the beneficiaries (H. MMongale, G. ka Qhele, E. Mfumba , S. Zoyi.) and approved by the ED Fund committee. Funding was released and project in the monitoring & support phase. The project has passed the feasibility stage and would be presented to the DMR for final approval.

The project is one of the new projects replacing the ones that were rejected by the DMR. The project is in feasibility stage and its date of completion is beyond reporting period.

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The following additional LED projects were also undertaken by the company:

Project Name:

Project Objectives

Khayalethu Residence

Redevelop and transfer ownership of an underutilized residence to accommodate the North West Emergency Medical Rescue Service College

Aardklop

AGA sponsored a group of 33 crafters to exhibit at the Aardklop festival in Potchefstroom which is an annual event aimed at contributing to both cultural and economic well-being of the communities in entire Dr Kenneth Kaunda District

Kabi Solar

2012-2014: Total Budget

To generate alternative energy and feed it into the Eskom supply so addressing state need for alternative energy sources.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

R1m

R323,600

Socio-economic impact of the project

Milestones achieved in 2013

The project has created 60 jobs not including the number of trainees that are employed in the emergency services of the state and beyond.

Project was concluded with the sign off by Provincial North West Government on the legal agreements. The project has created 60 jobs not including the number of trainees that are employed in the emergency services of the state and beyond.

These crafters lack business skills and are ill equipped to present their products in a professional manner. AGA undertook to provide business skills training and practical training on building and decorating a stall. The project entails, over and a above solar park development, community involvement via a trust which will hold 15% of the project equity. In addition 2% of the project revenue will be utilized for LED development in the impact area. AGA will transfer the land being earmarked at a market value of R 6m and associated rental income of R 251 000/annum to the trust.

Completed with significant empowerment of the traders involved. Procurement linkages beyond AGA and empowerment with the Enterprise Development are being explored.

Land agreements approval all pending a successful Department of Energy bid process was concluded. Project now await the Dept of Energy approvals in Sep 2013 *Some 1400 jobs will be created in the construction phase of the project

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3.4

Social Investment Spending Beyond Compliance

As stated previously, in 2011 the company reviewed its approach to socio-economic issues and has put in place a socio economic development model aimed at not only complying with the requirements of the law but also being responsive to the needs of the communities in which we operate and have traditionally sourced our labour from. To this end the Corporate CSI Fund was complimented by the above mentioned SI Fund with a particular focus on the Host and Labour Sending areas while the Corporate CSI Fund caters for all other areas not covered in the Social and Institutional Development Fund (SID Fund). Embedded in our Social and Institutional Development Fund are the following initiatives as outlined in the Millenium Development and Government priority goals:       

Poverty and Hunger Education Gender Equality Maternal Health HIV/ Aids Environmental Sustainability and Partnerships

To this end the company has allocated the following budget to the SID Fund initiatives for the Vaal River operations: Project Description ( R000)

TOTAL

2012

2013

2014

Social Fund (SVP & EVP 50 %)

R22,5 M

R7,5 M

TOTAL SOCIAL FUNDS

R22,5 M

R7,5 M

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The following table is a breakdown of the first half of 2013 Social and Institutional Development Initiatives with respect to the Vaal River and Labour Sending areas: TABLE 3.4.1: Social Funds Expenditure: January – June 2013 Name of Beneficiary Kanana Soup Kitchen Tecford centre Khaya Tshepo Motheo wa Tumelo Juveniles Yeoman Service Group Phakamile Home Based Care Rorisang Men and Youth Development Santa NW Kopano Support Group Le Rona Re Batho Leseli CANSA NG Welsyn Hearts of Gold - Blanket drive Mamosa Home Based Care Phatsimo Ntlhane Re Ka Thusa Primary Health Care Vissioned Youth Organisation Amampondo Health Care District Office Laptops Faith and Hope RUCC Cares Siyahana Youth Outreach Siyakhathala Caring Network Sonata Junior Primary School Catholic Development Centre Amampondo Health Care REAP (Rural Education Access Programme) Terra Peccana Farm School – Youth Day Project Eluxolewni Umtata Child Care programme

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Sector Poverty and Hunger Job Creation Poverty & Hunger Health Youth Development Health Youth Development Health HIV/AIDS Poverty and Hunger Walfare Health Sponsorship Sponsorship Health Sponsorship Poverty and Hunger Youth Development Health Sponsorship HIV/AIDS Education Youth Development Gender Equality Education Job Creation Health Education Education Youth Development

Vaal River

Labour Sending 5,383.70 355,848.59 144,317.40 450,000.00 34,600.00 75,000.00 69,060.00 53,800.00 75,000.00 62,000.00 75,000.00 10,000.00 10,000.00 15,000.00 75,000.00 45,000.00 46,620.00 75,000.00 100,000.00 178,305.58 100,000.00 200,000.00 100,000.00 100,000.00 190,000.00 152,820.00 100,000.00 400,000.00 68,910.05 75,000.00

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TABLE 3.4.1: Social Funds Expenditure: January – June 2013 Name of Beneficiary Siyakhanyisa GRAND TOTAL SOCIAL FUND EXPENDITURE

Sector

Vaal River

Labour Sending

HIV/Aids

75,000.00 R1,840,035.63

R1,676,629.69

The following figures show a breakdown of the January to June 2013 community investment by the company’s Local Area Committee on social projects: TABLE 3.4.2: Local Area Committee Expenditure: January – June 2013 Name of Beneficiary Sector Rethabile Children's Home Katy B Promotions The Cancer Association of SA (CANSA) NG WELSYN REK 1 Hearts of Gold - Blanket drive Rethabile Children's Home house no 2 School Shoes Mahube School - Buffeldoring South Africans againts drunk driving Crime Awareness Project Kopano Home Base Care Dienssentrum vir bejaardes Naledi Christian Pre-School CANSA Relay for Life Sparkling Support Foundation Shine Tswaraganang Potchefstroom akademies and SAAHST MCSA Potchefstroom E.M.S. Chaplaincy Baillie Park Primary Emmanual Hospice Leopards rugby team Hearts of Gold - Blanket drive Potchefstroom SPCA GRAND TOTAL LOCAL AREA COMMITTEE EXPENDITURE

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Education Welfare Health Sponsorship Sponsorship Education Education Health Youth Development Welfare Welfare Education Health Poverty and Hunger Education Sponsorship Sponsorship Welfare Education Welfare Sponsorship Sponsorship Sponsorship

Vaal River

Labour Sending 8,770.75 2,631.58 10,000.00 10,000.00 15,000.00 6,928.95 4,165.00 10,000.00

R67,496.28

R1,846.90 R2,339.00 R15,000.00 R11,285.84 R15,000.00 R15,000.00 R1,024.14 R1,200.00 5,000.00 10,000.00 5,000.00 14,989.02 7,500.00 10,000.00 5,000.00 R120,184.90

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Monies spent during January – June 2013 on philanthropy projects by the Vaal River business units are detailed as follows: Business Unit

Kopanang Mine

Project Name / Organisation

Project Description

The Cancer Association of South Africa (CANSA)

Shavathon fund raiser in aid of cancer

R2,300.00

Bethel Old Age Home - Bothaville

Donating of 20 blankets for the old age people

R3,000.00

OFM, Vodacom, Pep Winter Warm-Up campaign

Blanket Campaign

Orkney Welfare

Tekkie Tax Stickers Fund Raiser

Business Unit

Western Reefs Primary Khaya Home of Hope CANSA Shavathon

Project Description Assisted with the renovations of bus that was earlier donated by AGA - Vaal River LAC Supporting the home with their Valentine initiative during Feb 2013

OFM/Pep Blanket Drive

Supported the Annual OFM/Pep blanket drive

R 20,000.00

Project Name / Organisation

Project Description Supported the Annual Cansa Shavathon and donated money to CANSA

Tekkie Tax

Buy a sticker and wear your tekkies fund raiser

Blanket Drive

Vodacom/Pep/Ofm Warm Up Drive

TOTAL PHILANTHROPIC EXPENDITURE BY GREAT NOLIGWA MINE

Project Name / Organisation CANSA CANSA Pep OFM Blanket Drive

Project Description Annual CANSA shavethon held and raised money from employees that was donated to CANSA. Annual CANSA shavethon held and raised money from employees that was donated to CANSA. Donations were collected for Donating Blankets to the needy.

TOTAL PHILANTHROPIC EXPENDITURE BY SOUTH AFRICAN REGION SERVICES

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

R25 911.35 R 3,500.00

R82,441.35

CANSA Shavathon

Business Unit

Company Donations

R 5,000.00

Orkney Child Welfare

Easter Initiative

R15,000.00

R 15,030.00

R13,000.00

Business Unit

SARS

Hearts of Gold – Employees’ Donations

Supported the Annual Cansa Shavathon and donated money to CANSA Donated and visited various charities and people in the area - handed out blankets and Easter hampers to the people Supported Takkie Taks and donated and sold tickets for the cause

TOTAL PHILANTHROPIC EXPENDITURE BY MOAB KHOTSONG MINE

Great Noligwa Mine

R360.00 R5,660.00

Project Name / Organisation

Company Donations

R 15,000.00

TOTAL PHILANTHROPIC EXPENDITURE BY KOPANANG MINE

Moab Khotsong Mine

Hearts of Gold – Employees’ Donations

Hearts of Gold – Employees’ Donations R3,890.00

Company Donations

R 466.00

R 300.00

R 770.00

R10,000.00

R5,126.00

R10,300.00

Hearts of Gold – Employees’ Donations

Company Donations

R 5,580.00 R 6,130.00 R 4,310.00

R 5,000.00

R16,020.00

R5,000.00

Page 74 of 128

Business Unit

Metallurgy

Project Name / Organisation

Project Description

Manyokole Family

Both parents (worked for Metallurgy) passed away - assisted with groceries

OFM/PEP Blanket Drive

Blanket Drive - blankets still to be distributed to NGO's

R 4,000.00

CANSA

CANSA Shavathon fund raiser

R 6,020.00

TOTAL PHILANTHROPIC EXPENDITURE BY METALLURGY

Business Unit

Project Description Tickets were purchased for their fund raising event

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Company Donations

R940.00

R10,960.00

Project Name / Organisation

The Foundation for Social Change through Choice" (FSCC) TOTAL PHILANTHROPIC EXPENDITURE BY AGA HEALTH AGA Health

Hearts of Gold – Employees’ Donations

Hearts of Gold – Employees’ Donations R 2,810.00

R 15,000.00

R15,000.00

Company Donations

R2,810.00

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The following social investment initiatives were the highlights for the first half of 2013: VAAL RIVER Tecford Centre - Investment R355 848.59 Tecford is an enhancement Centre for disability. It first began with a four roomed building in Jouberton (Matlosana). The Centre has 60 disabled people; the ladies crochet and knit, and the men take a much added interest in manufacturing wire table mats and wire frames. The Centre received a contract from AngloGold Ashanti (VR) to manufacture wire hose clamps and they supply Orkney gold mine with them. Khaya Tshepo – Investment R144 317.40 Khaya Tshepo is a centre for vulnerable children. The centre runs as an independent NPO and offers children a haven and providing them with nutrition and age appropriate educational stimulation combined with lots of love and care. All this is provided by caregivers from the community who furthered their studies in Early Childhood Development. Assisted by a community liaison officer, Nomonde Lehloo, families receive assistance on psycho-social issues and medical care. Motheo wa Tumelo – Investment R450 000 Motheo wa Tumelo which means ‘Foundation of Faith’ was founded by an Anglican priest in 2002. The organisation is in the North West Province, in the Kanana Township on the outskirts of Orkney in Matlosana District. The organisation is operating from St Monica's Anglican Church in Kanana. Some of its staff compliment comprises retired professional nurses and volunteers who are trained in Home-Based Care. The following are programmes/activities are run by the organisation: • DOTS (Directly Observed Treatment Support) Short Course • Home Based Care Counselling • Condom distribution • OVC

LABOUR SENDING REAP (Rural Education Access Programme) – Investment R400 000 Rural Education Access Programme in an Association Body of the Southern African Cathloic Bishops Conference (SACBC) established in 2001. REAP is a national programme operating from Cape Town, but supporting students nationally. REAP’s objective is that the poor, but academically able, young women and men from rural areas gain access to Higher Education and receive the support needed to attain a useful qualification and develop as independent professionals, with the acquisition of skills and competencies they will be able to escape marginalisation and poverty, be economically productive and develop an ethos f service to the community. RUCC Cares – Investment R200 000 RUCC Ministries is the umbrella structure for a dynamic multifaceted ministry organisation. The organisation has over 20 satellites scattered across the Eastern and Western Cape Provinces. They are a community-based organisation operating through a network of local churches and NGOs providing spiritual transformation to people especially at grassroots level, healthcare, agriculture and food security, education, skills development, prison rehabilitation humanitarian relief, poverty alleviation and eradication. The objectives of the organsiation are as follows; • Seeks to alleviate poverty and disease in remote rural areas where health service are limited, addressing HIV/Aids and the stigma associated with it. • To restore human dignity by creating opportunity for the poor to eliminate their poverty through income generating projects. • To address social ills like drugs and immorality amongst youth, lack of basic needs in rural areas like water, sanitation and education

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3.5

Social Leases

As part of AGA’s initiatives to go beyond compliance, AGA assists organisations and individuals in the community with the requisite infrastructure for service delivery by providing premises at nominal rental rates. Deserving organisations and individuals benefit from the social leases scheme. In Vaal River there are currently 20 social type leases. The table below shows a list of such entities with their nominal rentals charged vs. Market related rates applicable as at end June 2013. TABLE 7.5: SOCIAL LEASES PROPERTY LEASE RENTALS No.

NAME OF ENTITY

SQM

MARKET RELATED RENTAL FOR PREMISES P/M

NOMINAL RENTAL FOR JANUARY

NOMINAL RENTAL FOR FEBRUARY

NOMINAL RENTAL FOR MARCH

NOMINAL RENTAL FOR APRIL

NOMINAL RENTAL FOR MAY

NOMINAL RENTAL FOR JUNE

APOSTOLIC FAITH MISSION CHURCH

320

3, 840

378

CITY COUNCIL OF MATLOSANA (OFFICES & LIBRARY)

725

8,700

DEPARTMENT OF HEALTH (CLINIC)

285

3, 420

CORLINE 128 T/A JUNGLE BUDDIES

500

6,000

408

EARLY SALVATION CHRISTIAN CHILD CARE CENTRE

1,285

15,420

449

494

MOSALA T/A JOLLY KIDS

960

194

NTSIE (UMUZIMUHLE PRE PRIMARY)

148

1,776

439

483

ORKNEY CHILD & FAMILY WELFARE

Unit

1 ,488

8.5833333333

ORKNEY ANIMAL SHELTER

458

5,496

13.9166666667

MATLOSANA RUGBY ACADEMY

502

6,024

399

438

ST. JOHNS APOSTOLIC CHURCH

242

2, 904

IRON MAIDEN MOTORCYCLE CLUB

360

20.29111111

21.33333333

DEPT. PUBLIC WORKS (KANANA POLICE STATION)

900

10,800

5 430

5 864

VAAL REEFS TECHNICAL HIGH SCHOOL

10,045

120, 540

0.0833333333

VAAL REEFS PRIMARY SCHOOL

2,750

33, 000

0.0833333333

UNITED PRIMARY SCHOOL

1,159

13,908

0.0833333333

EL-BETHEL CHRISTIAN WORSHIP MINISTRY

922

11,064

182

UMUZIMUHLE CONGREGATION

100

1,200

281

303

MOLALE SECURITY SERVICES (UD)

Unit/s

3, 780

0.0833333333

MINEWORKERS PROVIDENT FUND

200

2,400

0.0833333333 -

TOTALS TOTAL SOCIAL SPENDING P/M TOTAL SOCIAL SPENDING FOR QTR 1 & QTR 2 TOTAL SOCIAL SPENDING FOR FIRST HALF OF YEAR AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

253, 080

8, 254

8, 298

8, 320

8, 412

8, 846

8, 864

244 826

244 782

244 760

244 668

244 234 733 135

244 216

734 367 1, 467, 502.00

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3.6

Housing and Living Conditions

Mining Charter Requirement: In terms of Housing and Living Conditions the 2010 Amended BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH AFRICAN MINING AND MINERALS INDUSTRY provides as follows: “Human dignity and privacy for mineworkers are the hallmarks to enhance productivity and expedite transformation in the mining industry in terms of housing and living conditions. In this regard mining companies must implement measures to improve the standards of housing and living conditions for mineworkers as follows:   

Convert or upgrade hostels into family units by 2014; Attain the occupancy rate of one person per room by 2014; Facilitate home ownership options for all mine employees in consultation with organised labour by 2014.”

The Mining Charter scorecard requirements are indicated below along with the AGA VR compliance to date.

SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWEREMENT CHARTER FOR THE SOUTH AFRICAN MINING INDUSTRY - VAAL RIVER REGION -JUNE 2013

PROGRESS ACHIEVED BY No ELEMENT

DESCRIPTION

MEASURE

Conversion and upgrading of Percentage reduction of hostels to attain the occupancy occupancy rate towards 2014 rate of one person per room. target.

Conversion and upgrading of hostels into family units 3

Note on West Wits Operations Housing and from AngloGold Ashanti. living conditions

Percentage conversion of hostels into family units.

COMPLIANCE TARGET BY 2014 MC 2010

2010 Acieved

MC 2011

2011 Achieved

MC 2012

2012 Plan

MC 2013

Jun-13

2013 Plan

MC 2014

2014 Plan

Occupancy rate of one person per room

Base-line

29%

25%

46%

50%

64%

75%

90%

100%

Family units established

Base-line

55%

25%

70%

50%

80%

75%

100%

80%

100%

Implement initiatives to facilitate home ownership eg. Preference surveys, advice on purchasing homes, training on benefits of home ownership -

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

The company will set out to implement initiatives as recommended by the COM (Chamber of Mines) guideline document. Housing survey to be conducted in 2011.

Pilot project for 100 homes has been given AGA Board approval. Budget approved. Financial institution and developer have been identified and appointed. Land consolidation and subdivision in progress. House designs and

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REGULATION 46 (c) (iv) of the MPRDA stipulates that the contents of a social and labour plan must include measures to address the housing and living conditions of the mine employees. Housing and Living Conditions and the Mining Charter In terms of the 2003 Mining Charter scorecard, provides as follows with regards to Housing and Living Conditions:  

“For company provided housing, has the mine, on consultation with stakeholders, established measured for improving the standard of housing, including the upgrading of the hostels, conversion of hostels to family units and promoted home ownership options for mine employees? Companies will be required to indicate what they have done to improve housing and show a plan to progress the issue over time, and is implementing the plan? For company provided nutrition, has the mine established measures for improving the nutrition of mine employees? Companies will be required to indicate what they have done to improve nutrition and show a plan to progress the issue over time and is implementing the plan?”

The following is an outline of how the company has addressed the aforementioned issues. The company has, in consultation with the unions and housing forums agreed to the following measures aimed at improving the standard of housing aimed at improving the housing and living conditions of its employees. The following accommodation options are currently available to the employees:     

Living out allowance - this is paid as part of remuneration as agreed between the company and labour unions, to 8114 employees, including AHS. Boarding houses that provide varying degrees of accommodation facilities to 262 single employees. Residences that provide full accommodation to 5130 single employees. Attached to the residences, some 176 visiting wives units are available in the Vaal River area. Family accommodation of 3175 units are provided in municipal areas and mining areas.

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3.6.1

Upgrading of residences into single room accommodation

The following has been agreed to, in the various consultation forums, as the strategic basis for residence upgrading:   

Increased levels of privacy are pursued through the redevelopment of communal accommodation units into private rooms. Redevelopment work started in 2005. At the end of the June 2013 reporting period, 4188 single rooms were developed to a cost of R122.74 million. The revised plan to convert communal rooms into private rooms is scheduled to be completed by 2014 in order to comply with the Mining Charter. AngloGold Ashanti developed 108 single rooms in Kopanang Residence, 154 single rooms at Itireleng Residence and 128 single rooms at Noligwa Residence at the end of June 2013.

The following table shows the planned and actual Privacy and Upgrading projects undertaken in 2013: Table 3.6.1.

Planned 2013

Actual 2013 ( Bi Annual)

No. of rooms for upgrading

Estimated Capital

No. of upgraded rooms

Capital

Kopanang

1089

R21,87M

108

R6,87M

Noligwa

128

R424K

128

Itireleng

496

R10,86M

154

R254K R3,34M

Note: The rooms completed were less than the planned number due to the unprotected strike action and the late tender adjudication process. To date the number of rooms completed at Koponang Residence is 1332 at the end of June 2013. At Noligwa Residence a total of 2113 private rooms have been completed at the end of June 2013 and a further 744 private rooms completed at Itireleng Residence. The above constitutes an achievement of 90% against the 2013 75% MC target. To ensure that adequate female ablutions and change house facilities are available, the company has established female change houses at Kopanang and Noligwa residences. Kopanang female change house has the capacity to accommodate 300 females while Noligwa residence female change house can accommodate 450 females.

3.6.2

Redevelopment of residences to family units

As part of AngloGold’s Ashanti’s residence redevelopment for sustainable development, redundant residences have already been converted into family units. This approach has also been incorporated into the company’s future planning. Progress achieved to date is as follows:  To date a total of 170 family units have been redeveloped at a total cost of R37.74 million The above constitutes an achievement of 100% against the 2013 75% MC target.

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During 2013, AGA is using the services of four building contractors for the privacy redevelopment projects in the Vaal River region. The contractors are shown in the table below: Table 3.6.2.1 Contractor

Project site

BEE Status

Moshoao and Moll Civils

Kopanang Residence – Privacy Project

Level 4 – 50% Black Ownership

2K Construction

Koponang Residence – Privacy Project

Level 5

Vision Build

Itireleng Residence – Privacy Project

Level 1 – 50% Black Ownership

Sizwe Driehoek

Kopanang Residence– Privacy Project

Level 4 – 50% Black Ownership

3.6.3

Promotion of Home Ownership

Charter Compliance - 2014 AngloGold Ashanti have finalised a capital plan to create private room accommodation for all employees who choose to take up the option to reside in the residences, and also for the conversion and development of family accommodation in areas with spare capacity.  Privacy room conversion of residences is to be completed in 2014.  Family unit conversion of underutilised residences is planned to be completed in 2014. Promote and facilitate home ownership AngloGold Ashanti, in conjunction with recognised trade unions, is in the process of investigating the opportunity to create an affordable home ownership scheme for all employees. The following is an outline of the process that has been followed in this regard:      

Initial pilot project of 100 houses has been Board approved. BEE developer has been identified. Stakeholder alignment achieved. Local employment / job creation will be achieved. Scheme framework and affordability analysis complete Suitable land in the process of being identified for the pilot project.

Incorporation of AngloGold Ashanti land and property into the local Municipality and the creation of a sustainable future. AGA is in the process of formalising the incorporation of its mining villages into the Municipality of Matlosana.

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3.6.4

Nutrition

In this section we address: REGULATION 46 (v) of the MPRDA which requires that the contents of a social and labour plan must include measures to address the nutrition of the mine employees. AngloGold Ashanti has for several years been active in this field and the current status is 18 000 kilojoules per person per day which exceeds the Chamber of Mines benchmark of 13 000 kilojoules per person per day. The implementation of a new menu is being introduced together with kitchen access control measures. Benchmarking and internal and external reviews are conducted on a scheduled basis. The external specialist / consultant contracted to do this is Ms E Bredenhann in conjunction with the company‘s internal dietician Measures to address Nutrition at Residences: Background: A dietary analysis of the current menu indicates that it adequately caters for the energy and nutritional requirements of workers including underground workers performing moderate to hard work. Criteria used is the COMRO (Chamber of Mines Research Organisation) reference report no 11/91 to establish the energy requirements of underground workers as well as other international recognized measures such as the DRI (Daily Recommended Intake) and the Harris Benedict equation. The table below shows the kJ intake for work load category. Table 3.6.4.1 : KJ intake Moderate Work

Work Category

Moderate Light Work

Energy expenditure

12000Kj

13000kJ

Electrician Mine Overseer Loco Crew

Equipping team Team leader Stope team Miner Assistant Cleaning team

Examples of workers

Moderate Hard Work

Hard Work

14000kJ

15000kJ

Loader Driver Winch Driver

Driller Drill assistant

Diet plan and number of meals: The diet plan refers to the list of food groups incorporated in each meal as opposed to a menu which is a list of specific dishes served at each meal. In order to ensure that balanced meals are served, the numbers of meals, as well as the food groups to be served at each meal are taken into consideration. Traditionally only a pre-shift or a breakfast and a post shift or main meal was served in the Residences, but now a third meal is also served. A mid-shift supplement is also available to all underground workers (Morvite / Go Ahead Cereal). Food and nutritional evaluation: Consumption and Participation per person is measured. This procedure is maintained by a registered dietician.

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The following minimum criteria are used to evaluate the food and nutritional intake: Table 3.6.4.2: Daily Recommended Intake Minimum criteria per person

Source

Energy (kJ)

13000

COMRO 11/91

Carbohydrate (g)

500g

DRI

Protein (g)

130g

DRI

Fat (g)

DRI

Vitamin C (mg)

250

SA Mine recommendation

Vitamin A (IU)

1000

DRI

Calcium

1000

DRI

Meal Participation

90%

Staff Competency: In a process of acquiring an external facilitator who will provide training to catering staff to ensure that they are competent and sufficiently skilled to perform catering functions within AGA . On the job training is offered to staff members on an on- going basis to refresh them in food preparation and hygiene management

Measures to Address Nutrition: In order to minimize menu fatigue and accommodate customer preferences, meetings are held with worker representative structures with the aim of incorporating the residents’ proposals into the menu

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SECTION 4: PROCUREMENT Mining Charter Requirement: In terms of Procurement and Enterprise Development the amended 2010 BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH AFRICAN MINING AND MINERALS INDUSTRY states as follows: “Local procurement is attributable to competitiveness and transformation, captures economic value, presents opportunities to expand economic growth that allows for creation of decent jobs and widens scope for market access of South African capital goods and services. In order to achieve this, the mining industry must procure services of BEE entities in accordance with the following criteria:   

Procure a minimum of 40% of capital goods from BEE entities by 2014; Ensure that multinational suppliers of capital goods annually contribute a minimum of 0.5% of annual income generated from local mining companies towards socioeconomic development of local communities into a social development fund from 2010; Procure 70% of services and 50% of consumer goods from BEE entities by 2014.

The targets above are exclusive of non-discretionary procurement expenditure.”

Weighting

The Mining Charter scorecard requirements are indicated below along with the AGA compliance to date:

SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWEREMENT CHARTER FOR THE SOUTH AFRICAN MINING INDUSTRY - VAAL RIVER REGION - Q4 2012 PROGRESS ACHIEVED BY No

ELEMENT

DESCRIPTION

MEASURE

COMPLIANCE TARGET BY 2014 MC 2010

Procurement spent from BEE entity

Multinational suppliers contribution to the social fund

Capital goods Services Consumable goods

2010 Acieved

MC 2011

2011 Achieved

MC 2012

2012 Achieved Q4

MC 2013 2013 Act (May)

MC 2014

2014 Plan

40% 70%

5% 30%

39% 29%

10% 40%

43% 24%

20% 50%

34% 46%

30% 60%

42% 39%

40% 70%

5% 5%

50%

10%

40%

15%

51%

25%

57%

40%

59%

50%

0.5%

Fund details still being worked out by DMR. Our suppliers are willing to contribute and have been informed to set aside contributions in own trust fund, pending finalisation of fund by DMR and COM task team.

0.5%

Annual spend on procurement from multinational suppliers

Procurement & 4 Enterprise Development 0.5% of procurement value

REGULATION 46(v) of the MPRDA requires that the contents of a social and labour plan must include a local economic development programme which must include:

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The procurement progression plan and its implementation for the HDSA companies in terms of capital goods, services and consumables and the breakdown of the procurement which must be completed in the form of Form T contained in Annexure 5.

4.1

Report back on 2005 to 2013 performance against targets

The information required in terms of “Form T” is appended to this report. It should be noted that AngloGold Ashanti South African Region’s procurement activities are managed centrally and regionally. To this end the section on procurement covers both corporate and regional performances. The 2003 MC scorecard provides as follows:   

Has the mining company given HDSA’s preferred supplier status? Has the mining company identified current level of procurement from HDSA companies in terms of capital goods, consumables and services? Has the mining company indicated a commitment to a progression of procurement from HDSA companies over a three to five-year time frame in terms of capital goods, consumables and services and to what extent has the commitment been implemented?

4.1.1

AGA Corporate against the Mining Charter

The company has since 2005 put a plan in place to achieve the above stated requirements of the Mining Charter and has identified levels of procurement from HDSA companies in line with the targets set for capital goods, consumables and services and keeps track of this. The procurement spend with BEE Entities has grown positively over the past eight years as depicted in the graphs above.

4.1.2

Progress and Status based on the Mining Charter as at end of May 2013

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a) Total SAR Spend Base Significant progress has been made over the last five years as depicted in the table below and the trend is continuing with the introduction of the revised Mining Charter during September 2010. The following table shows the growth in spend profile from HDSA companies for between the period 2010 and May 2013 in the SA Region:

Table 4.2: Mining Charter Compliance Progress as at the end of May 2013

The table above shows that as at end of May 2013, the company achieved the Mining Charter targets with respect to BEE Capital spend and consumable spend at 37% against the target of 30% and 55% against the target of 40%, respectively. With regards to Services spend, AGA achieved 46%, a 14% below target of 60%. This is due to the precarious situation the mining companies find themselves in as most of the suppliers of services are regulated by the BBBEE Codes and not by the Mining Charter. In terms of the above mentioned codes unlike the Mining Charter, a BEE company is not required to have a minimum of 25% + 1 ownership status. In addition to this, such companies are not solely dependent on the mining industry for their existence which makes it difficult for mining companies to enforce compliance as per the Mining Charter. The implication of this is that it would be extremely difficult to achieve the 70% target set for services by 2014. We have pointed out this predicament to the DMR during our engagements including at the annual audits sessions. Multi Nationals are being addressed as an industry collective with the Chamber of Mines and the Department of Minerals Resources.

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b) Vaal River Region: Local Supplier Base The company continues to seek and acquire HDSA suppliers that can supply products required by our business units and also encourages our traditional suppliers to embark on a transformation process to ensure compliance with BEE requirements. AGA has spent R467.6m with qualifying BEE suppliers with a minimum of 25% Black ownership status, achieving 52% towards the 2014 targets, as at the end of May 2013.

Table 4.2: Spend Profile between traditional Suppliers and BEE Suppliers

2012 Full Year

Spend Categories

May 2013 YTD

2013 Target

% BEE Actual

R58.9m

30%

45%

R222.4m

R90.4m

60%

41%

R766.84m

R552.9m

R318.3m

50%

58%

R1.59bn

R907.3m

R467.6m

Total Spend

BEE Spend

Total Spend

BEE Spend

Capital

R651.7m

R223.9m

R131.9m

Services

R1.32bn

R605.4m

Consumables

R1.33bn

Total Spend

R3.31bn

52%

If the multinational contribution is discounted due to the Multinational Fund not yet being established by DMR and agreed upon by the industry, the company has actually achieved a score of 97% in this area. Multi Nationals are being addressed as an industry collective with the Chamber of Mines and the Department of Minerals Resources.

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4.2

High – Level Action Plan

AngloGold Ashanti has identified the following key action items to progress the attainment of the BEE targets by 2014 and beyond:

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4.3

Linking Procurement with Enterprise Development

As outlined in the above stated revised SLP, AGA Procurement Department is working in conjunction with AGA Enterprise Development to ensure that qualifying beneficiaries of the Enterprise Development programme are considered and accorded opportunities to participate in the AngloGold Ashanti supply chain and beyond. AGA established the SMME development programme in 1998 aimed at assisting emerging entrepreneurs and start-ups to enter the formal economy but with limited success. Following extensive consultations and strategic thinking an Enterprise Development Fund based on a R10m pa budgeted from 2012 to 2014 per operational / host community resulted in an total commitment of R 90m. All proposed projects are subject to an initial social impact criteria and business viability test and if it meets the requirements then it would migrate to feasibility, funding approval and implementation phases. SMMEs is also planned to be established and supported via Enterpise Development Centers and will be linked to the AGA procurement opportunities and with other companies as well. The Enterprise Development Center , is detailed above in the LED section 3.3 of this SLP. As an interim measure pending the establishment of the Enterprise Development Centers, the company has assigned dedicated personnel that assist aspirant entrepreneurs develop business plans and access funding to establish their businesses. The support to entrepreneurs continues until such time that the entrepreneur no longer requires such support. Focused interventions are put in place to ensure that skills are transferred rapidly to the entrepreneurs. The value chain of AGA enterprise development is depicted in the diagram below. Diagram : AGA Enterprise Development

Opportunity Search

Feasibility

Funding / Creation

Incubation & Support

Enterprise Improvement

Opportunity search entails meetings with aspirant entrepreneurs who approach AGA through networking with the relevant stakeholders such as the local councils, business chambers, community briefing sessions and on an individual basis. Such projects will be subject to an initial social impact criteria and business viability test and if they meet the requirements they would migrate to feasibility stage. The feasibility stage entails formulation of business plans and presentation of these plans to the Fund for finance assistance. Once approved the entrepreneur is assisted to register the business and comply with the requisite regulations for establishing his/her business. The entrepreneur is further assisted to source the right equipment, stock, and people and to find suitable premises to run the business from (also see “commercial leases”). During the incubation and support stage the entrepreneur is exposed to various interventions to ensure that the business becomes operational / implemented as per the business plan. Enterprise improvement is the last stage with focused interventions to help the business grow and become fully sustainable. Enterprise improvement also entails assisting entrepreneurs to secure business contracts inside and outside AGA for a sustainable business.

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The following table outlines the SMMEs that were supported by the Enterprise Development Fund and personnel during the 2013 reporting period: Projects Name

Project Objectives

Brick Making Plant Tlokwe

Brick manufacturing and hardware. Empowerment of current employees to obtain part ownership and enable business to become sustainable

2012-2014 Total Budget

R1 500 000

Total Expenditure as at 2012

Estimated Employment Opportunities

R 1 501 535

Operating business with the beneficiaries (H. MMongale, G. ka Qhele, E. Mfumba , S. Zoyi.) and approved by the ED Fund committee.

Milestones achieved in 201

Wood Wedges Manufacturing Plant

Empowerment if the current employees to obtain ownership and enable the business to become sustainable

R1 500 000

R 1 516 323

Operating business with the beneficiaries (Jan Gaspalangwe Williams, Lucas Lekgoa Thabaagae, Titus Matshobane Mokaleng, Joseph Lengekile Majola, Petrus Sandisile Majola, Kampie Piet Koloane, Werner Havenga, Milwa Shadrack Mogoje . Direct linkages to AGA procurement is being explored with the release of AGA based plantations to the business.

Light Engineering Workshop

Empowerment of current enterprise to deliver increased standard and volume of business to become sustainable

R 406 000

R 180 955

Operating business with the beneficiary (Stephan and Sarah Lipeere). Conversion of indirect to formal linkages to AGA procurement being explored.

This enterprise was linked to AGA procurement requirements but has now reached the stage where additional equipment and capacity is required to become a sustainable business.

R 100 000

R 85 000

R 21 179

Operating practice with the beneficiary Mr Langa. Linkage with AGA legal service who entered into service level agreement with this entity

Mpuse Trading

Russia Langa

Panel Beaters Ntsokolo

fa*gan & Son

The service provided by this business is severely limited due to the lack of an office and other resources, it is also, once capacitated, to be linked to AGA legal services.

Operating business with beneficiary as Mpuseletso Loeto with direct AGA procurement linkages.

The enterprise to qualify for larger volume and insurance approved work need industry standard equipment and facilities. This level of targeted assistance will increase volume to the business especially from state departments

R 910 000

R 750 664

Operating business with the beneficiaries Ntsokolo Thom and his wife Hester Sanders. Equipment aligned with industry standards were installed and procurement linkages are being explored to insurance companies with Nissan approval in place.

The business is a community base entity that require resources to improve services to sustainable levels too township residents

R 60 000

R 63 344

Operating business with the beneficiary fa*gan Stout and required stock of merchandise obtained.

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Projects Name

Cafe - Zimele Mfazi

Rathabo Funerals

Projects Name

Project Objectives

2012-2014 Total Budget

Existing client base is currently informally catered for and the project will provide the enterprise with the necessary equipment and resources to formalize the business

R 73 000

The business was establish by a previous loan advanced by AGA. The market has now expanded to the degree that additional equipment and resources are required.

Project Objectives

Tigane Bakery

Supplier development. This business lacks basic financial and administration systems and skills The initiative here is to provide them with the necessary financial and administration skills to become legally compliant and to determine what is required to grow the business

Hydroponic Farming Project

The Dept of Agriculture provided four tunnels that is fully equipped with irrigation and heating systems, but no working capital to start production. AGA assisted with startup capital

Soap Shop

Client saw an opportunity to buy washing detergents in bulk, repack and sell to local community. AGA assisted with Startup capital

VR Compost Plant

Turn waste streams into compost for rehab projects thus creating jobs and empowering local communities.

R 70 000

2012-2014 Total Budget

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

R25000

R290 000

R95 000

R1 439 083

Total Expenditure as at 2012

R 52 943

R 68 000

Total Expenditur e as at June 2013

R1 535

Estimated Employment Opportunities

Milestones achieved in 201 Operating business with the Nokuphumla Matholengwe, Sheila Magadaza, Khuluwa Matholengwe. Business had to relocate creating cashflow difficulties and is being assisted with revised repayment schedule Operating business with the beneficiary Abel Sebohuli. Exploring of potential extension of services to employee base of AGA.

Milestones achieved in 2013

Funding was approved to appoint a service provider to assist the business. Links to potential buyers in Tigane will also be explored via Mining Forum

Funding was approved by the funding committee. Enterprise Creation with beneficiaries: Clara Mojaki, Palesa Memane, Rebecca Mojaki, Neo Bokako and Nnete Mojaki is in progress

Funding was approved by funding committee. Enterprise creation with beneficiaries: Mpumelelo Phatosane and son is in progress Agreenco was approved as the preferred service provider to do the capacity building of DMBE. Agreenco will also be responsible for the 1st year of compost production.

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Projects Name

Waste Recycling Project

Mobile Fridges

Project Objectives

2012-2014 Total Budget

The company currently does not have the capacity to handle waste in bulk which is essential to ensure growth. The objective is to assist the company to move into a new growth cycle Entrepreneur needs funding to expand his business. He provides mobile fridges for functions in the Matlosana area. He currently has 2 fridges and it is fully booked every weekend. AGA will finance the expansion.

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

R451 000

R300 000

Total Expenditur e as at June 2013

R394 730

R120 000

Estimated Employment Opportunities

Milestones achieved in 2013 Funding was approved by the funding committee. The beneficiaries are Chriselda Moagi and Gabriel Knox. The suppliers of equipment has been paid and delivery is expected in the next month Funding was approved by the funding committee. The beneficiaries are Siyabonga Khuzwayo and Busisiwe Khuzwayo. The suppliers of equipment has been paid for 2 of the 4 mobile fridges and delivery is expected in the next month

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The projects listed in the following table were financed by AGA before 2012 but are still repaying the loans and are also still in the incubation and support framework. TABLE 4.3: Incubation and support projects Entrepreneur

Loan Amount Granted

Roel Canteen

15 000

Eva Shoes

10 900

Magetse Cell C

35 000

Augustine Public Phones

35 000

Shoroma Catering

30 000

Kena Telephones

30 000

Mathlare Garden Services

108 500

VR Auto

55 000

Melk Diphoko Construction

75 000

Matlosana Home of Biscuits

380 000

Molale Security

55 000

Rathabo Funerals

70 000

Vuka Msanzi

35 000

Dynamic Butchery

450 000

Triest Training Centre

Incubation

Mpuse Trading

Incubation

Tsebo

Incubation

VR Liquor Outlets

Incubation

In addition to these direct business initiatives AGA is also doing regular community workshops (3) in co-operation with the local business forums and other community forums. These workshops are aimed at motivating and giving people the first steps in how to start their own businesses. Community briefings and engagements are held quarterly to enhance the understanding and interaction with host communities especially business resulting in strong demand for services being offered.

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SECTION 5. MEASURES TO AMELIORATE THE IMPACT OF DOWNSCALING & RETRENCHMENT In this section we address: REGULATION 46(d) of the MPRDA requires that the contents of a social and labour plan must include: A process pertaining to management of downscaling and retrenchment which must includei. The establishment of the future forum; ii. Mechanisms to save jobs and avoid job losses and a decline in employment; iii. Mechanisms to provide alternative solutions and procedures for creating job security where job losses cannot be avoided; and iv. Mechanisms to ameliorate the social and economic impact on individuals, regions and economies where retrenchment or closure of the mine is certain.

5.1

Background

AngloGold Ashanti is committed to manage downscaling and retrenchments at its Business Units within the purview of the principles of the Social Plan requirements of the Minerals and Petroleum Resources Development Act, 2002 (Act 28 of 2002), the Charter for the Socio – Economic Development of the Mining Industry of South Africa and consistent with applicable labour legislation. The approach to managing downscaling and retrenchments takes cognizance of the tripartite relationship between government, the company and organized labour in proactively devising strategies to deal with the decline and closure of operations. The approach to managing downscaling and retrenchments is based on the following:  The establishment of a Future Forum;  Steps that may be undertaken to avoid job losses;  Initiatives to address instances where job losses cannot be avoided and  Steps to ameliorate the impact job losses may have on employees, and the assistance provided to retrenched employees. During the first half of 2013 AngloGold Ashanti’s South Africa Region continued with all operations in the Vaal River without downscaling of employment, in spite of the negative effect of the unprotected strike in the last quarter of 2012 that lasted for at least four weeks, and other debilitating factors such as rising costs, lowering grades and adverse economic conditions which impacted on the business. Establishment of a Future Forum Following the establishment of the Future Forum in terms of the MPRDA during 2012, the functioning of the Future Forum further gained momentum. The Future Forum in the Vaal River convened on 15 March 2013.

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5.2

Mechanisms to save jobs and avoid job losses, as well as a decline in employment

There is an understanding amongst role-players in the gold industry that the future sustainability of the industry depends on a variety of steps and initiatives to address the continuing fall in production. In this regard a framework agreement to co design arrangements at the effective utilisation of mining assets was signed to address, the continuing fall in production. It must be borne in mind that all unions are involved in this process. The company has also adopted a community and socio economic development strategy with an economic stream that seeks to create jobs, develop entrepreneurs and create employment opportunities for employees and communities outside of mining. The Future Forum in the Vaal River, plays an important role in pro actively addressing issues of job security, employment and alternative solutions when job losses are unavoidable. The future forum which consists of management, organised labour, municipalities and other relevant stakeholders are enjoined in terms of the forums constitution to: “Explore solutions and procedures for creating job security to sustain and improve the life of employees and their dependents in the event where job losses and retrenchment is unavoidable, and thereby ameliorating the social and economic impact on individuals, regions and economies where retrenchments are certain, and Enhancing effective communication and transparency between management, employees and organized labour in the furtherance of the Future Forum; and ensuring compliance with the requirements of the Mining Charter as well as the Mineral and Petroleum Resources Development Act and its Regulations in relation to the Future Forum.”

5.3

Downscaling and Retrenchments

Notwithstanding the unfavorable conditions as a result of amongst others the lowering gold price; declining grades and the rising costs in the SA operations; no employer initiated retrenchments in terms of s189 of the Labour Relations Act occurred during the first half of 2013. Given the current planning and budget cycle compounded by a low gold price, low outputs and prevailing economic conditions, the second half of 2013 will be approached with this in mind.

5.3.1

Section 189 of the Labour Relations Act, 66 of 1995 (LRA)

The company did not dismiss any employees due to employer initiated operational reasons during the first half of 2013.

5.3.2

Section 52 of the Mineral and Petroleum Resources Development Act, 2002 (MPDRA)

There was no need to invoke sec. 52 (1) of the Mineral, Petroleum Resources Act, 2002, as the company did not contemplate retrenchments during the first half of 2013.

5.3.3

Measures undertaken to ameliorate the impact on Downscaling and Retrenchment

The company is committed to manage downscaling and retrenchments in a manner that subscribes to fair labour practice as required by the applicable legislation, and in terms of company policy. During the first half of 2013, company forced retrenchments, as envisaged by sec. 189 of the LRA and sec. 52(1) (a) and (b) of the MPDRA were avoided by continuing with the strategy as highlighted at par. 5.2. AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

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The 2011 Chamber of Mines Wage Agreement provides for the minimum payment of R20 000.00 (Twenty Thousand Rand) severance pay in the event of employer initiated retrenchments. When it might become necessary to retrench or to downscale operations the company will comply with the constitution of South Africa , the Labour Relations Act, 1995, the Minerals and Petroleum Resource Development Act, 28 of 2002, and any applicable ILO Convention in particular convention 158. .

5.3.4

Steps undertaken to avoid job losses

As previously reported, the growth path of the company is based on (i) redesigning, (ii) rebasing, (iii) improvement, and (iv) cost saving and reduction. It enabled the company to ward off employer initiated downscaling during the first half of 2013. Excess labour was managed in a manner to avoid retrenchments and job losses, by amongst others transferring employees from Business Units where there was excess staff to Business Units where there was a need for particular skills. The company will continue to apply the following strategies to address excess labour by avoiding job losses as long as such approach proves sustainable:    

Allowing for natural attrition; Placing a moratorium on recruitment and promotions (except in respect of scarce skills), and Allowing for voluntary exit arrangements and; Invoking the company’s retirement policy.

5.3.5

Communication and Consultation with Stakeholders

Communication with organised labour about the company’s growth strategy and operational and business sustainability challenges occurred at (i) national leadership level, (ii) regional leadership level and at (iii) local leadership level. Consultation and communication occurred in the following instances:  AGA/ NUM steering committees;  Quarterly Result Presentation sessions to Organised Labour  Focused briefs to AMCU;  Communication to employees by the newly appointed CEO;  Meeting of the Future Forum;  Regular interface with UASA and Solidarity,  Utilization of the company’s print and electronic media;  Community Briefings;  Interaction with organised labour at the Optimisation of mining assets / Sindisa Gold project, and

5.3.6

Compliance with the Labour Relations Act

As mentioned above, there was no need to invoke the provisions of the Labour Relations Act, 66 of 1995, particularly with reference to sec. 189 (2) and (3), as the company did not contemplate retrenchments.

5.4

Utilisation of the Training Lay-Off Scheme

The approach in the rebasing exercise without retrenchment of employees, made it unnecessary to utilise the Training Lay-Off Scheme during the first half of 2013. AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

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SECTION 6. FINANCIAL PROVISION REGULATION 46 (e) of the MPRDA stipulates that the contents of a social and labour plan must: (e)

6.1

provide financially for the implementation of the social and labour plan in terms of the implementation ofi. The human resource development programme; ii. The local economic development programme; and iii. The processes to manage downscaling and retrenchment

Human Resource Programme

The following indicates the January - June HRD Expenses for Vaal River which includes the AGA Employees (18.1) & Community (18.2) Vaal River 55,118,442 10,801,441

TABLE 11A: HUMAN RESOURCE DEVELOPMENT PROGRAMME EXPENDITURE JAN-JUNE 2013 1. ATDS Training Cost Operational (Allocated on TEC excl MGT) ABET (Allocated on WKM TEC)

3,430,375

Learners

17,232,982

Managers in Training (Allocated on MGT TEC)

10,241,530

Bursars & Diplomats Training Cost from BU's Add back : MQA Grants received Revenue from external clients 4. Course fees not on Training activity 5. Study Assistance 6. Salaries of Replacement Labour (BU only) TOTAL TRAINING AND DEVELOPMENT COST

13,412,113 21,031,803 6,096,182 6,804,494 8,531,978 554,906 20,950,454 119,088,260

2. 3.

In terms of HRD the following budgets are planned going forward for the Vaal River operations and Labour Sending areas for 2013 to 2014. TABLE 11.B HUMAN RESOURCE DEVELOPMENT PROGRAMME: FINANCIAL PROVISION FOR VAAL RIVER Mining Charter HRD Financial Extra SIMS Total Financial Year HRD % of Payroll Requirement Provision Financial Provision Provision 2013 R215 082 978 4.5% R196 000 000 4.66% R19 082 978 2014

5.0%

R216 000 000

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R19 082 978

R235 082 978

Total % of Payroll 4.71% 5.18%

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6.2

Local Economic Development Programme

REGULATION 46 (e) (ii) of the MPRDA which stipulates that the contents of a social and labour plan must: (e)

provide financially for the implementation of the social and labour plan in terms of the implementation ofii The local economic development programme

The Jan-June expenditure for the host and labour sending communities in terms of Community Development is indicated in the following tables. The detail of this is further broken down in this report. Indicated in the table below is the YTD expenditure figures for Enterprise Development Projects undertaken:

Enterprise Development Butchery Brick Making Plant Tlokwe Wood Wedges Manufacturing Plant ( Mogugene) Light Engineering Workshop (Lepere) New Ventures Ntsokolo Panel Beaters Mpuse Russia Langa fa*gon & Sons Zimele Mfazi Rest Rathabo Funeral Parla Tigane Bakery Phokeng Soap Shop Mobile Fridges Waste Recycling Hydroponic Farming VR Composting Tigane Bricks Total Enterprise Development

Total Budget 450,000 1,500,000 1,500,000 406,000 21,795,917 910,000 100,000 85,000 60,000 73,000 70,000 25,000 95,000 300,000 451,000 290,000 689,083 1,200,000 30,000,000

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2013 Budget 6,851,917 910,000 100,000 85,000 60,000 73,000 70,000 25,000 95,000 300,000 451,000 290,000 689,083 10,000,000

2013 YTD June Actual -25,000 89,471 6,285 11,335 -5,844 8,474 -10,000 107,719 394,730 149,031 726,201

2013 Available 25,000 -89,471 6,851,917 903,715 100,000 73,665 65,844 64,526 80,000 25,000 95,000 192,281 56,270 140,969 689,083 9,273,799

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Local Economic Development TOTAL BUDGET Business Development Park 15,000,000 Kabi Solar Park Development (Land Donation) Khayalethu Residence 1,000,000 Schools/ Education Facilities 12,000,000 Urban Planning & Formalization of non-urban AGA Land & Property Holdings 14,001,000 Community Centers (MQH) 2,000,000 Swimming Pool- Tigane 2,500,000 School Sports Facilities 1,500,000 Township/Landscape Development 3,500,000 Sanitation-Khuma and Kanana 5,000,000 Contingency Funds 7,874,200 Total Local Economic Development 64,375,200

2013 Budget 5,000,000 2,000,000 3,500,000 2,500,000 3,762,000 16,762,000

Income Generating Projects Solid Waste Management Agric Projects Meat Processing Plant Aardklop Entrepreneurial Training Youth Coop Car Wash Printing and Stationery Shop (Greenville) Income Generating Contingency funds Total Income Generating

2013 Budget 2013 YTD June Actual 5,000,000 2,000,000 7,000,000 -

Total Budget 5,000,000 4,000,000 5,000,000 323,600 1,000,000 70,000 15,393,600

2013 YTD June Actual -5,000 33,600 245,736 274,336

2013 Available 5,000,000 5,000 1,754,264 2,500,000 3,762,000 13,021,264

2013 Available 5,000,000 2,000,000 7,000,000

Local Economic Development Labour Sending Business Development Park (ORT) VR SLP Community Centers (ORT) VR SLP Schools (ORT) VR SLP Total Local Economic Development LS

Total Budget 10,000,000 2,000,000 6,000,000 18,000,000

2013 Budget 5,000,000 1,000,000 2,000,000 8,000,000

Income Generating Projects Labour Sending Agric Projects VR SLP Total Income Generating

Total Budget 5,000,000 5,000,000

2013 Budget 2013 YTD June Actual 5,000,000 5,000,000 -

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

2013 YTD June Actual 624,990 624,990

2013 Available 5,000,000 1,000,000 1,375,010 7,375,010 2013 Available 5,000,000 5,000,000

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6.3

Downscaling and Retrenchment

In this section we address: REGULATION 46 (e) (iii) of the MPRDA which stipulates that the contents of a social and labour plan must: (e)

provide financially for the implementation of the social and labour plan in terms of the implementation of iii) the processes to manage downscaling and retrenchment

The company provides for the management of downscaling and retrenchment in terms of its Business plan process. The Labour Relations Act’s process and requirements will precede any downscaling that may lead to retrenchments. In the 2011-2013 Wage Agreement entered into between organized labour and the company, through the Chamber of Mines, provides for the payment of a minimum severance pay of not less than R20 000.00. It further undertook to pay a severance pay of not less than two weeks’ pay for every year worked. The company provides for the following when contemplating downscaling:   

An ex-gratia payment equivalent to one month’s basic pay. 50% of the retrenchee’s monthly basic pay for every completed year of continuous service. Unions may in addition negotiate severance pay at company level while engaging companies in terms of s 189 of the Labour Relations Act, provided that the existing practice of two weeks’ basic pay per year of service will not be reduced.

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SECTION 7: REPORTING (MONITORING AND EVALUATION) In this section we address the Mining charter requirements and MPRDA as detailed below. Mining Charter Requirement: In terms of Reporting (Monitoring and Evaluation) the amended BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH AFRICAN MINING AND MINERALS INDUSTRY states:

Weighting

Every mining company must report its level of compliance with the Mining Charter annually, as provided for by Section 28(2)(c) of the MPRDA. The Department shall monitor and evaluate, taking into account the impact of material constraints which may result in not achieving set targets. The Mining Charter scorecard requirements are indicated below along with the AGA VAAL RIVER compliance to date.

SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWEREMENT CHARTER FOR THE SOUTH AFRICAN MINING INDUSTRY - VAAL RIVER REGION - SECOND QUARTER 2011 PROGRESS ACHIEVED BY No ELEMENT

DESCRIPTION

MEASURE

COMPLIANCE TARGET BY 2014 MC 2010

1 Reporting

7.1.

Has the company reported the level of compliance with the Charter for the Calendar year

2010 Acieved

MC 2011

Submitted 31 March 2011

March 2012

2011 Achieved

MC 2012

2012 Achieved

MC 2013 2013 Plan

MC 2014 2014 Plan

Documentary proof of receipt from the department Annually- 31 March

March 2011

Submitted 31 March 2012

March 2013

Submitted March Submmitted March 2014 2013 March 2013

June 2014

Y/N

Monitoring

The Senior Vice President: Sustainability is charged with responsibility to ensure implementation of the Social and Labour Plan in conjunction with the relevant functional managers. A Sustainable Development Management Committee (SDMC) comprising all the relevant line functionaries, the Senior Vice President: Human Resources and the Vice President: Finance and Commercial Services oversee and monitor the implementation of the Social and Labour Plan programs and report to the SA Region Executive Committee which in turn reports to the AngloGold Ashanti Board Transformation Committee on a quarterly basis.

7.2.

Reporting

The Senior Vice President: Sustainability oversees the preparation and submission by the SA Region of AngloGold Ashanti Ltd on an annual basis, of reports to the DMR. Such reports will be in accordance with the financial year-end, and shall reflect expenditures and progress in accordance with the undertakings contained in the Social and Labour Plan.

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SECTION 8: SUSTAINABLE DEVELOPMENT AND GROWTH 8.1

Environmental Management

AngloGold Ashanti received approval of its revised Environmental Management Programme (EMP). AGA conducted an internal Environmental Performance Assessment th during the 4 Quarter 2011 to serve as a baseline for compliance to the EMP. Environmental performance assessments will be conducted on a two-yearly basis from the date of EMP approval. Closure liability assessments were updated (annually) and the closure trust fund, with bank guarantees fully providing for premature closure. AGA SA Region's environmental management strategy remains focussed on Integrated Water Management, Closure Planning, Waste Management and Knowledge Management, Legal Compliance, and the alignment of the environmental management programme with AngloGold Ashanti business management processes and overall sustainable development objectives: All AGA business units have retained ISO14001 certification since 2006. External legal compliance audits are conducted (2-yearly), supplemented by specific internal compliance assessments on key environmental authorisations such as water use licences, waste authorisations, certificates of registration, etc.

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8.2

Health and Safety Compliance Report

NB. This reporting template is currently under review by the Mine Health & Safety Council for the 2013 annual reporting period, and may change significantly going forward. TABLE 8 A - NB. This reporting template is currently under review by the Mine Health & Safety Council for the 2013 annual reporting period, and will change significantly going forward. Measure

Implementation of culture transformation framework Percentage of employees embarking on OHS representative training Percentage of leading practices from MOSH Learning Hub investigated for implementation Percentage of research findings from MHSC investigated for implementation Health: Percentage of mandatory occupational health reports submitted Health: Adherence to HIV/AIDS and TB guidelines

Achievement current year Annual update Note 8.2.1 in annual report Annual Update Note 8.2.2. in annual report Annual update. Note 8.2.3 in annual report Annual update. Note 8.2.4 in annual report 100% Note 8.2.5 Achieved Note 8.2.6

TARGETS

Points (Office use only)

2011

2012

2013

2014

Maximum

Awarded

50%

75%

100%

Yes

TOTAL POINTS (1) Only those leading practices and research findings completed during the current reporting period need to be investigated

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8.2.1

Percentage of mandatory Occupational Health reports submitted

TABLE 8.B - NB. This reporting template is currently under review by the Mine Health & Safety Council for the 2013 annual reporting period, and will change significantly going forward. Mandatory Reports A.

Date Submitted

Medical Report 1.

Submitted (Y/N)

Annual Medical Report

Yes

28 Feb 2013

Hygiene Reports 1.

Particulates Personal Exposure Report Form - 21.9(2)(a).

Yes

GNM 9 Jan 2013, Kop 21 Feb 2013, Moab 11 Feb 2013

Thermal Stress Exposure Report Form - 21.9(2)(c).

Yes

GNM 03 May 2012, Kop 04 Jun 2012, Moab 26 Mar 2012

Personal Noise Exposure - Report Form - 21.9(2)(e)

Yes

GNM 13 Jan 2013, Kop 14 Dec 2012, Moab 11 Feb 2013

TOTAL

4/4

8.2.2

Adherence to HIV/Aids and TB guidelines

NB. This reporting template is currently under review by the Mine Health & Safety Council for the 2013 annual reporting period, and may change significantly going forward. TB Guidelines compliant to:

NTBCP

DMR Guidance note

Is your HIV Guideline compliant to: 1. HIV/AIDS National Guidelines

TOTAL

Do you have a signed off TB policy? (Y/N)

Date TB Policy signed

Compliance to existing Guidelines – Yes TB & HIV programmes are aligned to the National TB Control Programmes, the DMR Guidance Note on TB, and the National HIV/AIDS Guidelines. Given the changing National policy framework and the new NSP, TB & HIV policies & procedures are under review to update and align with the new National Strategic Plan 2012-2016. Do you have a signed off HIV policy? (Y/N)

AGA Health approved TB Policy – Oct 2009, revised 2012

Compliance to existing Guidelines – Yes TB & HIV programmes are aligned to the National TB Control Programme, the DMR Guidance Note on TB, and the National HIV/AIDS Guidelines. Given the new NSP (2012-2016) TB & HIV policies & procedures are under review to update and align with the new National Strategic Plan 2012-2016.

AGA Board approved HIV Policy – April 2005.

2/2

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

Given the new NSP, TB & HIV policies & procedures are under review to update and align with the new National Strategic Plan 2012-2016. Discussed with DMR on 20 March 2012 for clarity, and numerous times centrally thereafter. Awaiting clarity and proposed amendments to the MPRDA Act. Date HIV Policy signed

Annual TB programme review done (Y/N) Yes – Chamber of Mines External TB Reviews Yes – DMR Mass H&S Audits

Date reviews done

Report on HCT uptake (Y/N) Yes

Date submitted to COM

2/2

Total = 4/4

Given the new NSP, TB & HIV policies & procedures are under review to update and align with the new National Strategic Plan 2012-2016.

23-24 January 2012 VR February & March 2012 VR

Previously submitted quarterly to SABCOHA – reports submitted electronically (Discussed with COM for submission and not required)

Discussed with DMR on 20 March 2012 for clarity, and numerous times centrally thereafter. Awaiting clarity and proposed amendments to the MPRDA Act.

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8.2.3

Progress against Industry Milestones

NB. This reporting template is currently under review by the Mine Health & Safety Council for the 2013 annual reporting period, and will change significantly going forward. Safety

Number of Fatalities

Number employees including contractors*

16752

Health

Kopanang – 0 Great Noligwa – 0 Moab Khotsong - 0 Percentage of individual personal respirable crystalline silica exposure measurement results (i.e. each sample taken) that exceeds the OEL (0.1 mg/m3) 0.75%

Number of machines that exceed 110dB (A) Readings to be taken as per CIoM instruction OH-5 2005. All installed/in use equipment should be included. 0

AngloGold Ashanti Social and Labour Plan Report Half Year 2013- Vaal River – Rev 00

FFR per Million Hours (No. of Fatalities/(No. of employees x 2200) x 1,000,000) 0.000

FIFR per Million Hours ([No. of fatalities x 1000000]/actual man hours recorded) 0.000

Number of workplaces that exceed 110 dB (A). Readings to be taken as per CIoM instruction OH-5 2005. 3

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SECTION 9: BENEFICIATION 9.1

Beneficiation in South Africa

AngloGold Ashanti is the world’s third largest gold producer, with 21 operations in 10 countries and is domiciled in South Africa. In all the countries in which we operate, governments are focusing on value-adding activities that benefit the local economies, either by increasing revenue or up skilling their people. Adding value to our mineral product before export from the country of origin is a serious aspect of the business. For AngloGold Ashanti, the notion of beneficiation or adding value to our product has been an integral part of the company’s strategic vision and marketing activities since the inception of its marketing department in 1999. This was, at that time, a novel approach in an industry that had hitherto failed to consider that its responsibility continued after mining activity and went beyond the refinery to the end consumer. Since then, AngloGold Ashanti has undertaken a number of initiatives to support both upstream and downstream activities. AngloGold Ashanti is a member of the World Gold Council and has been instrumental in initiatives that are aimed at supporting the gold market beyond South Africa. The main emphasis of our activities has been in jewellery design and manufacturing because we believe that the jewellery market provides the “floor” that supports the gold price. We are also investors in Rand Refinery (Pty) Limited, because gold refining is an important part of the process to convert our mined product to a metal form that can be used in inter alia jewellery, investment and technology.

9.2

Beneficiation initiatives in South Africa

AngloGold Ashanti has, over the past decade, committed itself to support the beneficiation of gold. This has included the provision of structural support to assist the growth and development of downstream industries.

9.2.1

Oro Africa

Our single largest beneficiation commitment is our long-term investment in Oro Africa, South Africa’s largest jewellery manufacturer and exporter. The company invested in the region of $6.1m when it acquired its shareholding in 2000. AngloGold Ashanti recently increased its stake in Oro Africa to 36% from 25%. This investment demonstrates our pledge to downstream activities, and presents potential for South Africa to leverage the depth of experience in terms of viable technical skills and practical business models in a highly competitive global jewellery market. As South Africa’s largest manufacturer and exporter of jewellery, Oro Africa continues to recruit and train scores of talented young South Africans in the art of jewellery creation. It serves clients throughout South Africa, North and South America, the United Kingdom, Australia and Mauritius, and is also looking to Dubai, the Middle East, India and China. See www.oroafrica.co.za for more information.

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9.2.2.

AuDITIONS (The Global Gold Couture Jewellery Design competition)

AuDITIONS, the world’s largest gold design competition celebrated its 12th anniversary in 2012. It is held biennially in South Africa, Brazil and China with the objective of inspiring designers to innovate with gold design. The competitions strive to increase gold’s desirability and to advance and extend the boundaries of design by encouraging bold, new creations in high caratage gold. Entry to these competitions is targeted at design students and professionals, but is in fact open to all residents of the respective countries. The Brazilian jewellery market is vibrant and the competition there centres around collaboration and sustainable development of the industry. By comparison, AuDITIONS China uses the competition to leverage jewellery consumers and increase trade through retail outlets. These initiatives are each unique and have their own brand equity. In South Africa, entrants are invited to attend jewellery design seminars which provide valuable exposure to local and international best practice and design trends. Thereafter, entrants submit design renderings. An independent panel of judges selects the designs which best meet the competition brief and theme, and which are innovative and creative in terms of design. Using 18 carat gold sponsored by AngloGold Ashanti, the finalists work with the best South African manufacturers to produce the finalists’ artefacts and jewellery pieces. This provides the students and amateur designers a first-hand opportunity to learn about the manufacturing side of the jewellery business. The 2011/2012 South African gold couture collection was launched at a prestigious event in Johannesburg in July 2012 and the winners joined an international group of contributing designers who have over the past decade created the most valuable, modern, bespoke gold collection in the world. As in this collection of gold jewellery and artefacts is valued at more than $3.2m. At the AuDITIONS Gold Design Awards in 2012, Minister of Mineral Resources, Susan Shabangu spoke about the importance of gold beneficiation, as well as its historical and economic significance. She said jewellery manufacturing fits well within South Africa’s beneficiation strategy and has been identified as requiring support. The challenges include a shortage of skills, under- investment in research and development and the rising price of gold. She added that buying jewellery overseas is a trend that needs to be reversed, and that a more co-ordinated framework of research, development and investment is needed to enable the country to develop a competitive edge in the production of jewellery. “If we are to make the increased beneficiation of our minerals a reality, we need to get real about skills and enterprise development,” said Shabangu. “Without education, we will not be able to change the lives of ordinary people in South Africa. We are aware that this cannot solely be a government process. It needs to be developed and driven by all stakeholders and, therefore, we welcome what AngloGold Ashanti is doing,” she told those present. Speaking at the South African launch, the CEO of AngloGold Ashanti stated: “It is not the activity of gold mining that fascinates the world or evokes emotions, but the actual metal itself – as it is transformed through design into splendid, valuable items that define success, beauty and wealth. AngloGold Ashanti through its AuDITIONS programme continues to demonstrate the importance of investing in design talent. Every season designers and manufacturers raise the bar of technical excellence, innovation and design, presenting yet another astonishing gold collection showcasing South Africa’s talent.” See www.goldauditions.com for more information.

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9.2.3

Gold of Africa Museum

In February 1999 AngloGold Ashanti acquired 350 West African gold artefacts from the Barbier-Mueller museum in Geneva, Switzerland to preserve the art of African goldsmithing and inspire contemporary design. As a result of this acquisition, AngloGold Ashanti established – and continues to support – the Gold of Africa Museum in Cape Town. This exclusive Museum attracts local and international visitors, allowing them to experience the ancient, sometimes mystical, relationships that exist between the African continent and this precious metal. Although primarily home to the Barbier-Mueller collection, the Museum – with its state-of-the-art visuals and artistic displays – also exhibits objects from the ancient gold civilisations of southern Africa. Temporary exhibits from countries as diverse as India, Brazil, Mali and Egypt explore the commonality of the historical gold theme as it crosses geographical borders and cultural divides. The Museum not only preserves gold history and educates visitors; it is in addition a developing cultural hub, providing space for other local art endeavours (such as women from KwaZulu-Natal who specialise in weaving highly sought-after wire bowls). It also hosts the only gold-based scholars programme in the country. See www.goldofafrica.com for more information.

9.2.4

Rand Refinery

AngloGold holds a 42.41% iterest in Rand Refinery (Pty) Limited, a key player in the beneficiation/value-added chain in South Africa and on the African continent. Rand Refinery was established in 1920 and is certified by the London Bullion Market Association. This means it complies with the highest standards required by bullion banks, commodity traders and coin distributors. The Refinery goes beyond just refining doré; it produces gold cast bars, minted bars, semi-finished product, coins and certified gold. These products are available to the South African and the global market. AngloGold Ashanti’s investment in terms of time and resources in the Refinery places South Africa in a competitive position, opening up various beneficiation opportunities. See www.randrefinery.co.za for more information

9.2.5

The Gold Zone

The Refinery itself has a number of other beneficiation initiatives. The Gold Zone offers both local and international jewellery manufacturers a cost-effective location for their manufacturing facilities. Additional benefits include access to bulk manufactured semi-fabricated jewellery components and proximity to the Refinery. The latter is important as it provides easy access to facilities for re-refining any scrap gold produced in the jewellery manufacturing process. This initiative aims to assist gold jewellery manufacturers to beneficiate African gold for export and to assist local communities with skills development. The Gold Zone, assisted by the African Growth Opportunity Act, offers the added advantage of exporting jewellery to the USA. The facility also houses a number of skills development projects aimed at uplifting local communities, and with a view to employment in the jewellery manufacturing industry.

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The following projects are located in the Gold Zone: Richline SA was established in 1978 by Alan Mair as South African Manufacturing Jewellers (SAMJ), Richline Group Inc. acquired the assets of SAMJ in October 2012. The new company now operates as Richline SA (Pty) Ltd and is located in the Gold Zone. The company is committed to delivering innovative jewellery design and manufacturing, a legacy of SAMJ. While the company will continue to produce gold and silver jewellery, it specialises in “bonded gold”; a product that combines two precious metals, gold over silver, in a technologically sophisticated process. The firm intends to revitalise its focus in both the South African local market and also exports into Africa and other areas of the world. See www.richlinegroup.com for more information. Gold Reef City Mint has been a dealer and manufacturer of fine, classic and modern numismatic (study or collecting of coins or medals) items for more than 30 years. It is one of two privately-owned mints in South Africa that have minted South African legal tender coins. It manufactures a variety of coins, medals, corporate gifts, badges, key rings, medallions and trophies. The Mint is also an approved distributor of the South See www.grcmint.co.za for more information. Intsika Skills Beneficiation Project (Intsika) is a section 21 organisation. Using precious and semi-precious minerals and stones, it teaches skills in mineral beneficiation. Founded in 2002, it began operating in 2004 at its current location in the Gold Zone. The project was developed to assist in the development of the youth, particularly given the high rate of unemployment in the area, as well as the need to promote beneficiation, encourage entrepreneurship and reduce poverty among young people from historically disadvantaged backgrounds. Trainees earn credits by participating in the project, and these can usually be applied towards a National Certificate in Jewellery Manufacturing. The Ekurhuleni Jewellery Project was launched in mid-2009, and caters for industry-based skills programmes and the development of small, medium-sized and microenterprises (SMMEs). Learners receive some theoretical training, and participation in the project adds the necessary practical skills. It also provides them with a nationally recognised qualification. After a training period, learners are upskilled for the relevant industry. These SMME incubators offer qualified, emerging jewellers access to fully-equipped workshops, production services and technical support. These entrepreneurs are provided with an opportunity to develop their own businesses in a secure and enabling environment sponsored by the Ekurhuleni municipality. The Ekurhuleni Jewellery project provides support for the industry by providing accredited short courses, skills programmes and has a recognition-of-prior-learning system in its Training for the Trade programmes. See www.randrefinery.co.za for more information.

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ANNEXURES Annexure 1- Breakdown of employees Vaal River Country AUSTRALIA

Province

Contr

Mine

BOTSWANA

DEMOCRATIC REP OF CONGO

LESOTHO

359

MALI

2086 2

MOZAMBIQUE

470

1297

634 397 428 104 147 80 3600 35 10

2838 1014 690 362 182 88 6762 67 7

SWAZILAND

452

ZAMBIA

SOUTH AFRICA

EASTERN CAPE FREE STATE GAUTENG KWAZULU NATAL LIMPOPO MPUMALANGA NORTH WEST NORTHERN CAPE WESTERN CAPE

ZIMBABWE

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Annexure 2: Form S VAAL RIVER: BUSINESS UNITS % HDSA ACTUALS TABLE S.1: KOPANANG MINE 2013 EE PLAN Male

Female

Male

Foreign National

Occupational Levels

Total

AGA % HDSA Target

Male

Female

Senior Management

28%

16%

56%

100%

44%

Prof.qual. - Mid Management

30%

12%

48%

100%

52%

Skilled Technical

48%

36%

100%

60%

Semi-skilled

56%

13%

14%

100%

72%

U/skilled & Def. dec. making

49%

14%

26%

100%

70%

Total Permanent

50%

12%

22%

100%

70%

Non-Permanent Employees

GRAND TOTAL

50%

12%

22%

100%

70%

TABLE S. 2: KOPANANG MINE 2013 EE ACTUAL Male

Female

Male

Foreign National Total

Actual % HDSA

2013 MC % HDSA target

0.0%

100%

75.0%

35%

3.2%

0.0%

100%

41.3%

40%

35.2%

12.9%

0.2%

100%

51.7%

40%

0.4%

1.6%

38.7%

0.1%

100%

59.6%

0.0%

1.1%

25.8%

0.7%

100%

72.4%

0.0%

0.8%

5.9%

28.2%

0.4%

100%

65.5%

0.0%

8.2%

0.0%

0.8%

5.9%

28.2%

0.4%

100%

65.5%

Occupational Levels A

Male

Female

Senior Management

50.0%

0.0%

25.0%

0.0%

Prof.qual. - Mid Management

25.4%

0.0%

1.6%

0.0%

1.6%

12.7%

55.6%

Skilled Technical

41.2%

1.4%

0.0%

4.6%

0.0%

4.6%

Semi-skilled

55.5%

0.1%

0.0%

3.5%

0.1%

0.0%

U/skilled & Def. dec. making

60.1%

0.4%

0.0%

11.9%

0.0%

Total Permanent

56.1%

0.4%

0.0%

8.2%

Non-Permanent Employees

0.0%

GRAND TOTAL

56.1%

0.4%

0.0%

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Page 111 of 128

TABLE S.3: GREAT NOLIGWA MINE 2013 EE PLAN Male

Female

Male

Foreign National

Occupational Levels

Total

AGA % HDSA Target

100%

42%

100%

52%

34%

100%

58%

12%

100%

76%

28%

100%

71%

29%

100%

67%

100%

11%

29%

100%

67%

Male

Female

Senior Management

28%

14%

58%

Prof.qual. - Mid Management

34%

48%

Skilled Technical

47%

Semi-skilled

46%

24%

U/skilled & Def. dec. making

50%

18%

Total Permanent

52%

11%

Non-Permanent Employees

GRAND TOTAL

52%

TABLE S.4: GREAT NOLIGWA MINE 2013 ACTUAL Male

Female

Male

Total

Actual % HDSA

2013 MC % HDSA target

Foreign National

Occupational Levels A

Male

Female

Senior Management

0.0%

100.0%

0.0%

100%

0.0%

35%

Prof.qual. - Mid Management

28.6%

2.9%

0.0%

2.9%

0.0%

2.9%

60.0%

2.9%

0.0%

100%

37.1%

40%

32.4%

0.7%

0.0%

3.0%

0.0%

4.1%

44.9%

14.9%

0.0%

100%

40.2%

Semi-skilled

47.0%

0.0%

3.7%

0.0%

1.1%

48.0%

0.3%

100%

50.6%

U/skilled & Def. dec. making

52.9%

0.2%

0.0%

10.2%

0.0%

0.1%

0.4%

35.6%

0.6%

100%

63.4%

Total Permanent

48.5%

0.2%

0.0%

7.4%

0.0%

0.5%

6.4%

36.6%

0.4%

100%

56.6%

Non-Permanent Employees

0.0%

100.0%

0.0%

100%

0.0%

GRAND TOTAL

48.4%

0.2%

0.0%

7.4%

0.0%

0.5%

6.6%

36.5%

0.4%

100%

56.5%

Skilled Technical

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

40%

No Target

Page 112 of 128

TABLE S.5: MOAB KHOTSONG MINE 2013 EE PLAN Male

Female

Male

Foreign National Total

AGA % HDSA Target

100%

42%

100%

50%

36%

10%

100%

54%

10%

100%

84%

30%

100%

69%

28%

100%

65%

100%

11%

28%

100%

65%

Occupational Levels A

Male

Female

Senior Management

28%

14%

58%

Prof.qual. - Mid Management

30%

50%

Skilled Technical

40%

Semi-skilled

48%

26%

U/skilled & Def. dec. making

51%

18%

Total Permanent

52%

11%

Non-Permanent Employees

GRAND TOTAL

52%

TABLE S.6: MOAB KHOTSONG MINE 2013 ACTUALS Male

Female

Male

Total

Actual % HDSA

2013 MC % HDSA target

Foreign National

Occupational Levels A

Male

Female

Senior Management

20.0%

10.0%

0.0%

10.0%

60.0%

0.0%

100%

40.0%

35%

Prof.qual. - Mid Management

18.8%

4.2%

0.0%

5.2%

0.0%

1.0%

9.4%

60.4%

1.0%

0.0%

100%

38.5%

40%

Skilled Technical

39.0%

0.7%

0.0%

4.1%

0.2%

0.0%

4.1%

40.2%

11.6%

0.0%

100%

48.1%

40%

Semi-skilled

51.1%

0.1%

0.0%

4.4%

0.0%

0.3%

1.9%

42.0%

0.2%

100%

55.8%

U/skilled & Def. dec. making

55.6%

0.1%

0.0%

14.4%

0.0%

0.6%

28.9%

0.5%

100%

70.1%

Total Permanent

51.1%

0.3%

0.0%

9.8%

0.0%

0.9%

7.8%

29.7%

0.3%

100%

62.1%

Non-Permanent Employees

0.0%

100.0%

0.0%

100%

100.0%

GRAND TOTAL

51.1%

0.3%

0.0%

9.8%

0.0%

0.9%

7.8%

29.7%

0.3%

100%

62.2%

No Target

TABLE S.7: COMBINED METALLURGY 2013 EE PLAN Occupational Levels Senior Management

Male

Female

Male

Foreign National

Total

AGA % HDSA Target

Male

Female

28%

58%

100%

42% 52% 62%

Prof.qual. - Mid Mgmt.

22%

12%

46%

100%

Skilled Technical

40%

32%

100%

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TABLE S.7: COMBINED METALLURGY 2013 EE PLAN Male

Occupational Levels

Female

Semi-skilled

54%

U/skilled & Def. dec. making

50%

Total Permanent

49%

Non-Permanent Employees

20%

GRAND TOTAL

49%

Male

Foreign National

Total

AGA % HDSA Target

Male

Female

34%

100%

64%

16%

30%

100%

69%

13%

25%

100%

67%

41%

25%

14%

100%

86%

13%

25%

100%

67%

Total

Actual % HDSA

2013 MC % HDSA target

TABLE S.8: COMBINED METALLURGY 2013 ACTUAL Occupational Levels

Male

Female

Male

Foreign National

Male

Female

Senior Management

25.0%

0.0%

12.5%

0.0%

12.5%

50.0%

0.0%

100%

50.0%

35%

Prof.qual. - Mid Mgmt.

32.1%

1.2%

0.0%

10.7%

1.2%

3.6%

14.3%

35.7%

1.2%

0.0%

100%

63.1%

40%

Skilled Technical

40.5%

1.4%

0.0%

8.3%

0.5%

0.3%

6.0%

41.7%

1.0%

0.2%

100%

57.1%

40%

Semi-skilled

68.2%

1.0%

0.0%

17.8%

0.3%

0.1%

1.4%

4.4%

6.5%

0.1%

100%

88.9%

U/skilled & Def. dec. making

69.7%

2.0%

0.0%

18.1%

0.4%

0.0%

0.2%

2.8%

6.6%

0.2%

100%

90.4%

Total Permanent

58.7%

1.4%

0.1%

14.7%

0.5%

0.3%

3.1%

16.5%

4.7%

0.2%

100%

78.6%

Non-Permanent Employees

66.7%

0.0%

33.3%

0.0%

100%

100.0%

GRAND TOTAL

58.7%

1.4%

0.1%

14.8%

0.5%

0.3%

3.1%

16.5%

4.7%

0.2%

100%

78.7%

No Target

TABLE S.9: VR METALLURGY 2013 EE ACTUAL Male

Female

Male

Total

Actual % HDSA

2013 MC % HDSA target

Foreign National

Occupational Levels A

Male

Female

Senior Management

16.7%

0.0%

16.7%

66.7%

0.0%

100%

33.3%

35%

Prof.qual. - Mid Management

26.7%

1.7%

0.0%

8.3%

1.7%

20.0%

40.0%

0.0%

100%

60.0%

40%

Skilled Technical

35.7%

1.9%

0.0%

8.4%

0.5%

5.8%

46.3%

0.7%

0.2%

100%

52.8%

40%

Semi-skilled

68.3%

1.2%

0.0%

18.0%

0.5%

0.0%

1.6%

5.1%

0.2%

100%

89.6%

U/skilled & Def. dec. making

68.5%

2.2%

0.0%

20.9%

0.4%

0.0%

0.4%

3.7%

0.4%

100%

92.3%

Total Permanent

56.6%

1.6%

0.0%

15.2%

0.5%

0.2%

3.4%

18.8%

3.3%

0.2%

100%

77.7%

Non-Permanent Employees

66.7%

0.0%

33.3%

0.0%

100%

100.0%

GRAND TOTAL

56.6%

1.6%

0.0%

15.3%

0.5%

0.2%

3.4%

18.8%

3.3%

0.2%

100%

77.7%

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

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Page 114 of 128

TABLE S.10: COMBINED ANGLOGOLD ASHANTI HEALTH (AGAH) 2013 EE PLAN Male

Occupational Levels

Senior Management

15%

Prof.qual. - Mid Mgmt.

26%

Skilled Technical

25%

Semi-skilled

35%

U/skilled & Def. dec. making

33%

Total Permanent

49%

Non-Permanent Employees GRAND TOTAL

Female I

Male

10%

15%

45%

52%

28%

49%

Foreign National

Total

AGA % HDSA Target

Male

Female

61%

100%

39%

20%

16%

100%

83%

22%

100%

96%

100%

98%

59%

100%

96%

32%

100%

93%

56%

12%

100%

96%

32%

100%

93%

TABLE S.11: COMBINED ANGLOGOLD ASHANTI HEALTH ( AGAH) 2013 ACTUAL Occupational Levels

Male

Female

Male

Foreign National

Total

Actual % HDSA

2013 MC % HDSA target

0.0%

100%

35.7%

35%

0.0%

100%

84.8%

40%

2.9%

0.4%

0.7%

100%

96.0%

40%

7.2%

0.8%

1.2%

0.0%

100%

97.9%

0.0%

3.1%

0.0%

100%

96.9%

0.0%

13.3%

3.0%

1.0%

0.2%

100%

95.7%

0.0%

6.3%

1.6%

0.0%

100%

98.4%

0.0%

12.8%

2.9%

1.0%

0.2%

100%

95.9%

Male

Female

Senior Management

14.3%

0.0%

7.1%

0.0%

14.3%

64.3%

0.0%

Prof.qual. - Mid Mgmt.

27.3%

0.0%

6.1%

30.3%

3.0%

0.0%

18.2%

15.2%

Skilled Technical

19.5%

0.4%

0.0%

47.8%

1.8%

0.0%

26.5%

Semi-skilled

29.8%

0.4%

0.0%

59.6%

0.8%

0.0%

U/skilled & Def. dec. making

21.5%

0.0%

73.8%

1.5%

Total Permanent

25.6%

0.3%

54.9%

1.3%

Non-Permanent Employees

38.1%

0.0%

50.8%

3.2%

GRAND TOTAL

26.5%

0.3%

54.6%

1.4%

No Target

TABLE S.12: VR ANGLOGOLD ASHANTI HEALTH ( AGAH) 2013 ACTUAL Male

Female

Male

Total

Actual % HDSA

2013 MC % HDSA target

Foreign National

Occupational Levels A

Male

Female

Senior Management

12.5%

0.0%

25.0%

62.5%

0.0%

100%

37.5%

35%

Prof.qual. - Mid Management

28.6%

0.0%

14.3%

35.7%

0.0%

14.3%

7.1%

0.0%

100%

92.9%

40%

Skilled Technical

20.6%

0.0%

56.0%

0.7%

0.0%

17.7%

3.5%

0.0%

1.4%

100%

95.0%

40%

Semi-skilled

29.6%

0.8%

0.0%

59.6%

1.7%

0.0%

6.7%

1.3%

0.4%

0.0%

100%

98.3%

U/skilled & Def. dec. making

17.9%

0.0%

76.9%

2.6%

0.0%

2.6%

0.0%

100%

97.4%

Total Permanent

25.3%

0.5%

58.1%

1.4%

0.0%

10.2%

3.2%

0.5%

100%

95.9%

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Page 115 of 128

TABLE S.12: VR ANGLOGOLD ASHANTI HEALTH ( AGAH) 2013 ACTUAL Male

Female

Male

Foreign National

Occupational Levels

Total

Actual % HDSA

Male

Female

Non-Permanent Employees

27.3%

0.0%

45.5%

0.0%

18.2%

9.1%

0.0%

100%

90.9%

GRAND TOTAL

25.4%

0.4%

57.8%

1.3%

0.0%

10.4%

3.3%

0.4%

100%

95.8%

2013 MC % HDSA target

Note: SA Regional employees based at the Potchefstroom Office are incorporated in the SA Regional Services plan below

TABLE S.13: COMBINED SOUTH AFRICAN REGIONAL SERVICES (SARS) 2013 EE PLAN Males

Occupational Levels

Females

Male

Foreign National

Total

AGA % HDSA Target

Male

Female

Senior Management

11%

65%

100%

35%

Prof.qual. - Mid Mgmt.

24%

12%

46%

100%

52% 69%

Skilled Technical

35%

11%

20%

29%

100%

Semi-skilled

60%

15%

10%

100%

84%

U/skilled & Def. dec. making

64%

19%

16%

100%

83%

Total Permanent

50%

14%

10%

16%

100%

75%

Non-Permanent Employees

20%

42%

22%

16%

100%

84%

GRAND TOTAL

50%

14%

10%

16%

100%

75%

TABLE S.14: COMBINED SOUTH AFRICAN REGIONAL SERVICES (SARS) 2013 ACTUAL Occupational Levels

Male

Female

Male

Foreign National

Total

Actual % HDSA

2013 MC % HDSA target

Male

Female

Senior Management

14.0%

5.3%

1.8%

3.5%

0.0%

3.5%

71.9%

0.0%

100%

28.1%

35%

Prof.qual. - Mid Mgmt.

13.5%

3.0%

6.7%

0.7%

1.3%

18.9%

52.2%

0.7%

0.0%

100%

47.1%

40%

Skilled Technical

29.0%

0.7%

0.3%

9.9%

0.9%

0.3%

23.8%

33.7%

1.6%

0.0%

100%

64.8%

40%

Semi-skilled

51.7%

0.9%

0.3%

25.2%

0.5%

0.3%

9.7%

3.3%

8.0%

0.3%

100%

88.4% 81.6%

U/skilled & Def. dec. making

59.3%

0.3%

0.0%

21.9%

0.0%

0.1%

2.2%

16.1%

0.1%

100%

Total Permanent

42.4%

1.0%

0.5%

17.4%

0.5%

0.3%

11.8%

18.5%

7.5%

0.1%

100%

73.8%

Non-Permanent Employees

25.0%

0.0%

21.9%

1.6%

0.0%

18.8%

31.3%

0.0%

1.6%

100%

67.2%

GRAND TOTAL

42.0%

0.9%

0.5%

17.5%

0.5%

0.3%

12.0%

18.8%

7.4%

0.1%

100%

73.7%

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

No Target

Page 116 of 128

TABLE S.15: VR SOUTH AFRICAN REGIONAL SERVICES (SARS) 2013 ACTUAL Male

Female

Male

Total

Actual % HDSA

2013 MC % HDSA target

Foreign National

Occupational Levels A

Male

Female

Senior Management

10.0%

2.5%

5.0%

0.0%

2.5%

77.5%

0.0%

100%

22.5%

35%

Prof.qual. - Mid Management

11.3%

4.0%

1.7%

7.3%

0.6%

1.1%

19.8%

53.7%

0.6%

0.0%

100%

45.8%

40%

Skilled Technical

26.0%

0.9%

0.0%

8.4%

0.9%

0.2%

20.9%

41.9%

0.7%

0.0%

100%

57.4%

40%

Semi-skilled

52.6%

1.4%

0.5%

25.7%

0.7%

0.0%

8.4%

2.7%

8.0%

0.0%

100%

89.3%

U/skilled & Def. dec. making

58.4%

0.2%

0.0%

23.9%

0.0%

0.2%

2.1%

14.9%

0.2%

100%

82.8%

Total Permanent

41.3%

1.2%

0.4%

17.8%

0.5%

0.2%

10.5%

21.0%

7.0%

0.1%

100%

71.9%

Non-Permanent Employees

23.7%

0.0%

15.8%

2.6%

0.0%

13.2%

42.1%

0.0%

2.6%

100%

55.3%

GRAND TOTAL

40.9%

1.2%

0.4%

17.8%

0.6%

0.2%

10.6%

21.5%

6.9%

0.1%

100%

71.5%

Male

Foreign National

No Target

TABLE S.16: COMBINED CORPORATE 2013 EE PLAN Male

Female

Occupational Levels

Total

AGA % HDSA Target

Male

Female

Senior Management

14%

55%

100%

41%

Prof.qual. - Mid Management

16%

10%

20%

36%

100%

59%

Skilled Technical

14%

18%

10%

39%

100%

91%

Semi-skilled

69%

10%

14%

100%

U/skilled & Def. dec. making

100%

Total Permanent

26%

12%

20%

27%

100%

69%

Non-Permanent Employees

12%

24%

35%

23%

100%

42%

GRAND TOTAL

26%

12%

20%

27%

100%

69%

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

Page 117 of 128

TABLE S.17: COMBINED CORPORATE 2013 ACTUAL Male

Female

Male

Total

Actual % HDSA

2013 MC % HDSA target

Foreign National

Occupational Levels A

Male

Female

Senior Management

6.2%

1.8%

4.4%

2.7%

0.9%

4.4%

13.3%

47.8%

15.9%

2.7%

100%

33.6%

35%

Prof.qual. - Mid Management

11.1%

0.4%

5.3%

8.9%

4.0%

21.3%

32.0%

7.1%

5.8%

100%

55.1%

40%

Skilled Technical

11.8%

1.1%

2.2%

20.4%

12.9%

10.8%

33.3%

2.2%

3.2%

2.2%

100%

92.5%

40%

Semi-skilled

64.9%

1.0%

0.0%

14.4%

6.2%

0.0%

11.3%

0.0%

2.1%

0.0%

100%

97.9%

U/skilled & Def. dec. making

0.0%

Total Permanent

20.1%

0.9%

3.6%

10.6%

5.3%

4.5%

19.9%

24.2%

7.4%

3.4%

100%

65.0%

Non-Permanent Employees

7.4%

2.9%

10.3%

2.9%

5.9%

29.4%

32.4%

2.9%

100%

61.8%

GRAND TOTAL

18.6%

1.2%

3.5%

10.6%

5.0%

4.7%

21.0%

25.2%

6.9%

3.4%

100%

64.6%

No Target

TABLE S.18: VR CORPORATE OFFICE 2013 ACTUAL Male

Female

Male

Total

Actual % HDSA

2013 MC % HDSA target

Foreign National

Occupational Levels A

Male

Female

Senior Management

5.3%

1.8%

3.5%

1.8%

3.5%

14.0%

43.9%

19.3%

5.3%

98%

31.6%

35%

Prof.qual. - Mid Management

11.6%

0.0%

5.1%

8.5%

4.2%

3.4%

20.3%

32.2%

6.8%

7.6%

102%

53.4%

40%

Skilled Technical

5.0%

0.0%

2.3%

20.9%

14.0%

9.3%

32.6%

2.3%

4.7%

2.3%

93%

90.7%

40%

Semi-skilled

66.7%

0.0%

14.6%

6.3%

0.0%

10.4%

0.0%

2.1%

0.0%

65%

97.9%

U/skilled & Def. dec. making

0.0%

Total Permanent

20.3%

0.4%

3.4%

10.2%

5.6%

3.8%

19.2%

24.1%

8.3%

4.9%

100%

62.8%

Non-Permanent Employees

5.9%

2.9%

8.8%

0.0%

5.9%

29.4%

35.3%

5.9%

2.9%

100%

55.9%

18.7%

0.7%

3.3%

10.0%

5.0%

4.0%

20.3%

25.3%

8.0%

4.7%

100%

62.8%

GRAND TOTAL

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

No Target

Page 118 of 128

Annexure 2: Form S VAAL RIVER: BUSINESS UNITS NUMERICAL HDSA ACTUALS TABLE S1.1: KOPANANG MINE 2013 ACTUALS Male

Female

Male

Foreign National

Occupational Levels

Total

Actual % HDSA

75.0%

41.3%

207

588

51.7%

636

1642

59.6%

732

2834

72.4%

301

1446

5131

65.5%

0.0%

421

301

1446

5131

65.5%

Male

Female

Senior Management

Prof.qual. - Mid Management

Skilled Technical

242

Semi-skilled

912

U/skilled & Def. dec. making

1704

337

Total Permanent

2876

421

2876

Non-Permanent Employees GRAND TOTAL

TABLE S1.2: GREAT NOLIGWA MINE 2013 ACTUALS Male

Female

Male

Foreign National

Occupational Levels

Total

Actual % HDSA

0.0%

37.1%

133

296

40.2%

380

792

50.6%

543

1524

63.4%

170

968

2648

56.6%

0.0%

195

174

968

2652

56.5%

Male

Female

Senior Management

Prof.qual. - Mid Management

Skilled Technical

Semi-skilled

372

U/skilled & Def. dec. making

806

156

Total Permanent

1284

195

1284

Non-Permanent Employees GRAND TOTAL

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

Page 119 of 128

TABLE S1.3: MOAB KHOTSONG MINE 2013 ACTUALS Male

Female

Male

Foreign National

Occupational Levels

Total

Actual % HDSA

40.0%

38.5%

235

584

48.1%

530

1261

55.8%

678

2349

70.1%

337

1277

4300

62.1%

100.0%

422

337

1277

4303

62.2%

Male

Female

Senior Management

Prof.qual. - Mid Management

Skilled Technical

228

Semi-skilled

644

U/skilled & Def. dec. making

1305

338

Total Permanent

2197

422

2197

Non-Permanent Employees GRAND TOTAL

TABLE S1.4: VAAL RIVER METALLURGY 2013 ACTUALS Male

Female

Male

Foreign National Total

Actual % HDSA

33.3%

60.0%

192

415

52.8%

643

89.6% 92.3%

Occupational Levels A

Male

Female

Senior Management

Prof.qual. - Mid Management

Skilled Technical

148

Semi-skilled

439

116

U/skilled & Def. dec. making

187

273

Total Permanent

791

213

263

1397

77.7%

100.0%

793

214

263

1400

77.7%

Non-Permanent Employees GRAND TOTAL

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

Page 120 of 128

TABLE S1.5: COMBINED METALLURGY 2013 EE ACTUAL DESIGNATED Occupational Levels

NON-DESIGNATED

Male

Senior management

Female

White

Foreign Nationals

Total

2013 actual % HDSA

50.0% 63.1%

Male

Female

Professionally qualified…management

Skilled technical…superintendents

238

245

587

57.1% 88.9% 90.4%

Semi-skilled… decision making

585

153

858

Unskilled & defined dec. making

319 1171

9 27

0 1

83 294

2 9

0 6

1 61

13 330

30 93

1 3

458

2 1173

0 27

0 1

1 295

0 9

0 6

0 61

0 330

0 93

0 3

Total Permanent Non-permanent employees GRAND TOTAL

1995

78.6%

100.0%

1998

78.7%

TABLE S1.6: VR ANGLOGOLD ASHANTI HEALTH ( AGAH) 2013 ACTUAL Male

Female

Male

Foreign National Total

Actual % HDSA

37.5%

92.9%

141

95.0%

240

98.3%

97.4%

442

95.9%

90.9%

262

453

95.8%

Occupational Levels A

Male

Female

Senior Management

Prof.qual. - Mid Management

Skilled Technical

Semi-skilled

143

U/skilled & Def. dec. making

112

257

115

Total Permanent Non-Permanent Employees GRAND TOTAL

TABLE S1.7 COMBINED ANGLOGOLD ASHANTI HEALTH (AGAH) DESIGNATED Occupational Levels

NON-DESIGNATED

Male

Female

White

Foreign Nationals

Total

2013 actual % HDSA

Male

Female

Senior management

35.7%

Professionally qualified…management

84.8%

272

96.0%

Skilled technical…superintendents

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

130

Page 121 of 128

TABLE S1.7 COMBINED ANGLOGOLD ASHANTI HEALTH (AGAH) DESIGNATED Occupational Levels

NON-DESIGNATED

Male

Semi-skilled… decision making Unskilled & defined dec. making

Non-permanent employees

Foreign Nationals

Total

2013 actual % HDSA

Male

Female

144

288

483

97.9%

0 2

96.9%

867

95.7%

98.4%

930

95.9%

0 3

24 246

GRAND TOTAL

White

14 222

Total Permanent

Female

0 3

48 476

0 3

32 508

1 11

0 0

2 13

0 115

0 0

0 26

4 119

2 9

1 27

0 9

0 2

TABLE S1.8: VR SOUTH AFRICAN REGIONAL SERVICES (SARS) 2013 ACTUAL Male

Female

Male

Foreign National Total

Actual % HDSA

22.5%

177

45.8%

180

430

57.4%

439

89.3%

476

82.8%

164

328

110

1562

71.9% 55.3% 71.5%

Occupational Levels A

Male

Female

Senior Management

Prof.qual. - Mid Management

Skilled Technical

112

Semi-skilled

231

113

U/skilled & Def. dec. making

278

114

Total Permanent

645

278

Non-Permanent Employees GRAND TOTAL

654

284

169

344

110

1600

TABLE S1.9: COMBINED SOUTH AFRICAN REGIONAL SERVICES (SARS) DESIGNATED Occupational Levels

NON-DESIGNATED

Male

Female

White

Foreign Nationals

Total

2013 actual % HDSA

Male

Female

Senior management

28.1%

Professionally qualified…management

155

297

47.1% 64.8%

Skilled technical…superintendents

222

182

258

766

Semi-skilled… decision making

407

198

787

88.4%

1 3

777

81.6%

2684

73.8%

67.2%

Unskilled & defined dec. making Total Permanent Non-permanent employees

461 1138 16

2 26 0

0 14 0

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

170 466 14

0 13 1

0 8 0

1 317 12

17 497 20

125 202 0

Page 122 of 128

GRAND TOTAL

1154

480

329

517

202

2748

73.7%

TABLE S1.10: VR CORPORATE OFFICE 2013 ACTUAL Male

Female

Male

Foreign National

Occupational Levels

Total

Actual % HDSA

Male

Female

Senior Management

31.6%

Prof.qual. - Mid Management

118

53.4%

Skilled Technical

90.7%

Semi-skilled

97.9%

U/skilled & Def. dec. making

0.0%

Total Permanent

266

62.8%

Non-Permanent Employees

55.9%

GRAND TOTAL

300

62.0%

Total

Actual % HDSA

TABLE S1.11:COMBINED CORPORATE OFFICE 2013 ACTUAL Male

Female

Male

Foreign National

Occupational Levels Senior Management Prof.qual. - Mid Management Skilled Technical Semi-skilled U/skilled & Def. dec. making Total Permanent Non-Permanent Employees GRAND TOTAL

Male

Female

113

33.6%

225

55.1%

92.5%

97.9% 0.0%

25 11 63

1 1 1

12 2 0

20 19 14

9 12 6

9 10 0

48 31 11

72 2 0

16 3 2

106

105

128

528

65.0% 61.8% 64.6%

111

125

150

596

The company has at the beginning of August 2012, acquired a Uranium Operation called Mine Waste Solutions, where about 423 employees were transferred to SA Region. Due to the location of the business (Stilfontein – North West), Vaal River operation has incorporated Mine Waste Solutions in its report. As at the end of December 2012, the numerical status with respect to HDSA representation was as follows:-

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

Page 123 of 128

TABLE S1.12: MINE WASTE SOLUTIONS 2013 ACTUAL DESIGNATED Occupational Levels Senior Management

NON-DESIGNATED

Male

Female

White

Foreign Nationals

Total

2013 actual % HDSA

Male

Female

Prof.qual. - Mid Management

50.0%

Skilled Technical

41.7%

Semi-skilled

113

38.1%

U/skilled & Def. dec. making

88.7%

Total Permanent

140

221

96.8%

Non-Permanent Employees

218

419

77.8%

33.3%

219

425

77.2%

GRAND TOTAL Occupational Levels

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

Page 124 of 128

Annexure 3: FORM Q AGA VAAL RIVER TOTAL AS AT JUNE 2013

BAND

NQF LEVEL OLD SYSTEM No Schooling / Unknown Pre-ABET Grade 1 / Sub A Grade 2 / Sub B Grade 3 / Std 1 / ABET 1 Grade 4 / Std 2 Grade 5 / Std 3 / ABET 2 Grade 6 / Std 4 Grade 7 / Std 5 / ABET 3 Grade 8 / Std 6

General Education and Training

2 Further Education and Training

5 6 Higher Education and Training

7 8 9 10

Grand Total

Male

Grade 9 / Std 7 / ABET 4 / General Education Certificate / N1 Grade 10 / Std 8 / National Certificate (Vocational), Level 2 / N2 Grade 11 / Std 9 / National Certificate (Vocational), Level 3 / N3 Grade 12 / Std 10 / National Senior Certificate / National Certificate (Vocational), Level 4 / N1 + N2 + N3 + 2 languages Higher Certificate Advanced Certificate / Diploma Bachelor Degree (360 credits) / Advanced Diploma Honours Degree / Postgraduate Diploma / Bachelors Degree (480 credits) Masters Degree Doctoral Degree

Female

African 986 794 176 21 712 267 642 462 924 354

Coloured 17 1 0 0 6 1 1 0 3 1

Indian 4 0 0 0 0 0 0 0 0 0

White 161 0 0 0 4 0 4 0 2 4

1215

806

157

1655

2822

75 42

3 1

12 1 0 12004

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

African Coloured 149 3 24 0 1 0 0 0 34 1 1 0 30 0 7 0 22 0 17 0

Male Total

Female Total

Grand Total

Indian 2 0 0 0 0 0 0 0 0 0

White 48 0 0 0 0 0 1 0 0 0

1168 795 176 21 722 268 647 462 929 359

202 24 1 0 35 1 31 7 22 17

1370 819 177 21 757 269 678 469 951 376

1234

1295

120

971

140

1111

201

370

1866

382

2248

777

897

203

3635

1116

4751

0 0

97 43

82 64

1 1

0 1

29 19

175 86

112 85

287 171

152

0 0 0 91

4 0 0 9

23 6 0 1534

9 2 0 1933

0 0 0 26

1 0 0 8

13 0 0 368

39 7 0 13638

23 2 0 2335

62 9 0 15973

Page 125 of 128

CONTRACTORS LEVEL 1 VAAL RIVER TOTAL AS AT JUNE 2013

BAND

NQF LEVEL

General Education and Training

2 Further Education and Training

5 6 Higher Education and Training

7 8 9 10

Grand Total

Male OLD SYSTEM No Schooling / Unknown Pre-ABET Grade 1 / Sub A Grade 2 / Sub B Grade 3 / Std 1 / ABET 1 Grade 4 / Std 2 Grade 5 / Std 3 / ABET 2 Grade 6 / Std 4 Grade 7 / Std 5 / ABET 3 Grade 8 / Std 6 Grade 9 / Std 7 / ABET 4 / General Education Certificate / N1

Grade 10 / Std 8 / National Certificate (Vocational), Level 2 / N2 Grade 11 / Std 9 / National Certificate (Vocational), Level 3 / N3 Grade 12 / Std 10 / National Senior Certificate / National Certificate (Vocational), Level 4 / N1 + N2 + N3 + 2 languages Higher Certificate Advanced Certificate / Diploma Bachelor Degree (360 credits) / Advanced Diploma Honours Degree / Postgraduate Diploma / Bachelors Degree (480 credits) Masters Degree Doctoral Degree

Female

Male Total

Female Total

Grand Total

African 778 17 19 15 59 44 94 133 155 137

Coloured 7 0 0 1 1 0 1 1 0 0

Indian 5 0 0 0 0 0 0 0 0 0

White 95 0 0 0 0 0 0 0 1 1

African 70 0 0 0 0 1 1 1 1 4

Coloured 1 0 0 0 0 0 0 0 0 0

Indian 0 0 0 0 0 0 0 0 0 0

White 10 0 0 0 0 0 0 0 0 0

885 17 19 16 60 44 95 134 156 138

81 0 0 0 0 1 1 1 1 4

966 17 19 16 60 45 96 135 157 142

166

167

177

161

185

204

187

229

256

197

105

306

358

0 1

0 0

1 0

0 0

1 1

0 0

1 1

0 0 0 2163

0 0 0 19

0 0 0 5

1 0 0 267

0 0 0 173

0 0 0 1

0 0 0 0

0 0 0 23

1 0 0 2454

0 0 0 197

1 0 0 2651

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

Page 126 of 128

GRAND TOTAL VAAL RIVER (AGA, CONTRACTORS AND AHS) AS AT JUNE 2013

BAND

NQF LEVEL

General Education and Training

2 Further Education and Training

5 6 Higher Education and Training

7 8 9 10

Grand Total

Female

Male Total

Female Total

Grand Total

African 1764 811 195 36 771 311 736 595 1079 491

Coloured 24 1 0 1 7 1 2 1 3 1

Indian 9 0 0 0 0 0 0 0 0 0

White 256 0 0 0 4 0 4 0 3 5

African 219 24 1 0 34 2 31 8 23 21

Coloured 4 0 0 0 1 0 0 0 0 0

Indian 2 0 0 0 0 0 0 0 0 0

White 58 0 0 0 0 0 1 0 0 0

2053 812 195 37 782 312 742 596 1085 497

283 24 1 0 35 2 32 8 23 21

2336 836 196 37 817 314 774 604 1108 518

1381

1401

1472

967

179

139

1156

159

1315

1842

242

396

2095

409

2504

3019

882

937

215

3941

1168

5109

75 43

3 1

0 0

98 43

82 64

1 1

0 1

29 19

176 87

112 85

288 172

152

12 1 0 14167

0 0 0 110

4 0 0 14

24 6 0 1801

9 2 0 2106

0 0 0 27

1 0 0 8

13 0 0 391

40 7 0 16092

23 2 0 2532

63 9 0 18624

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

Page 127 of 128

Annexure 4: Form R : Hard to fill vacancies Occupational Level

Geographical area

Job Title of Vacancy

Main reason for being unable to fill the vacancy

Top Management

N/A

Senior Management

N/A

Professionally qualified and experienced specialist and mid-management

Vaal River

Senior Rock Eng Officer,

No 1st degree available incumbents must be developed internally

Professionally qualified and experienced specialist and mid-management

SA Region

Geologist/Geosciences Manager

Scarce Skill

Professionally qualified and experienced specialist and mid-management

SA Region

Certificated engineers

High turnover and small pool of eligible candidates

Professionally qualified and experienced specialist and mid-management

Vaal River

Environmental Manager

Relative Scarce Skill – industry

Vaal River

Multi skilled artisans, Electricians, Fitters, Riggers, Boilermakers, Surveyors, Commercial Officers, Miners; instrument technicians, mechanical Engineering Technicians, Winding Engine Drivers

High turnover

Semi-skilled and discretionary decision making

N/A

Unskilled and defined decision making

N/A

Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents

AngloGold Ashanti Social and Labour Plan Report Half Year 2013-- Vaal River – Rev 00

Page 128 of 128

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