The Group’s human resources strategy focuses on building and developing a talented, skilled workforce working in supportive environments in which excellence is rewarded and innovation can flourish. We have over 125,000 permanent employees in more than 45 countries around the world.

Development

2006 was another significant year in terms of investment in people at all levels within the organisation. Direct investment in training was $171 million, 4.5% of total payroll costs. Training specifically related to safety, health and environment amounted to 19% of these costs.

Training statistics generally underestimate the total investment in developing our people, as they exclude learning on the job, coaching and mentoring activities by managers and colleagues and career development moves. The average number of formal training days per employee for 2006 is 2.44 days (down on 2005).

Anthea Bath (Platinum), back left, and Vanessa Naicker (Anglo Technical Division) participating in a collaboration exercise during the Chile leg of the Leaders in Anglo programme.

Leadership development was a focus area in 2006, with the launch of two new Group-wide programmes supported by the faculty of the renowned Duke Business School. Multiple divisional and regional initiatives designed to embed our key management competencies were rolled out to existing and emerging leadership groups.
Some of our regional initiatives include Tarmac’s Talking Leadership programme, aimed at 200 managers across Europe, which has started to close a significant gap in some of the ‘softer’ management skills. Anglo Base Metals has continued its deployment of the Learning and Career Management processes in South America to ensure that all employees have learning and development plans. The Anglo Achievers programme, which covers all our divisions based in South Africa, is gaining momentum with employees in the early stages of their careers. Our investment in bursars, apprentices, graduates and other trainees is designed to find and develop the skilled resources and leaders required for the future.

In addition, we are increasing the potential pool of technical skills within the mining industry. More than 30 northern hemisphere students from mining-related university programmes were given work placements across the globe through our student technical experience programme (STEP). We are on track to meet our five-year target to provide development to more than 100 students through this programme. In South Africa, we have also recently embarked on an ambitious programme offering practical one-year work placements to more than 200 technikon students in their penultimate year of study.

Relationships with our employees

Despite the pressures experienced in the mining industry as a whole with regard to skills shortages, our overall voluntary labour turnover rates remain fairly steady and we are seeing the positive results of some of the transformation and change management initiatives such as Anglo Coal’s Yebo Siyaphambili (Yes, let us go forward together), reported on in previous years.

Anglo Base Metals work climate survey

In June 2006, Anglo Base Metals conducted its second global work climate survey, including Exploration division and Copebrás employees.

The survey tested employees’ understanding of the business, their jobs, strengths and areas in which they feel improvement is needed. It also measured progress since Anglo Base Metals’ first global work climate survey in 2004 and provided a benchmark for the Exploration division and Copebrás to track future progress in the work climate.

Employees could complete it on-line or on hard copy in English, Spanish, Portuguese or Afrikaans. Some 7,219 employees (92% of the workforce) participated, providing a high level of confidence in the results.

The good news is that 86% of Anglo Base Metals’ employees understand the business unit’s strategy and objectives, as well as the link to their own jobs and the results expected of them. More than 70% feel they are not discriminated against, have the information to do their jobs well and that there is co-operation in their teams.

As areas for improvement, employees focused on regular feedback on their own performance, reducing bureaucracy and the basis on which promotions and transfers are made. The priorities for 2007 include equipping employees with performance management skills, enhancing leadership skills and behaviour and improving two-way communication.

Consultation with employees

Formal consultation mechanisms with our employees have remained virtually unchanged since 2005, with 86% of employees being represented by unions, works councils and other bodies.

Collective bargaining

Successful negotiations on wages and other terms and conditions in Anglo Coal, Anglo Platinum, AngloGold Ashanti and Scaw Metals during 2005 resulted in multi-year agreements and, as a result, no wage negotiations were conducted in these operations during 2006.

However, a number of disputes were declared in other operations and, with the exception of Namakwa Sands, all were resolved without strike action. The strike at Namakwa Sands lasted 41 days and was marred by violence and misconduct.

A High Court interdict was obtained by the company to prevent further violence and damage to property. The resulting dismissal of 11 employees has been the subject of arbitration. Five of eight cases have been heard and four dismissals were upheld, with one employee reinstated. Mondi South Africa was served with a notice of commencement of strike action despite agreement on wages having been reached.

The dispute was over the extension of the Centralised Bargaining Unit. Strikes over this topic are not protected in South African law and Mondi obtained an order from the Labour Court to have the matter referred back for mediation or arbitration. The matter was eventually resolved following extensive negotiations.

In Chile, where the high copper price contributed to higher expectations among employees, proactive steps were taken by our Anglo Base Metals copper operations to recognise these and, as a result, our mines were not subject to the industrial action that adversely affected other copper-producing companies in that region.

Diversity

We are proud to be one of the few companies in the FTSE 100 index which has appointed a female chief executive. This signal of commitment at the highest level is starting to be mirrored by gradual changes in our gender diversity. We have seen an increase in women employees and managers during 2006.

We are still on track to achieve our transformation targets agreed with the South African government with respect to employment of historically disadvantaged South Africans in management positions. At year end, we had reached 43%, including junior management, (target 40% by 2009) in designated positions.

Both Anglo Coal and Anglo Platinum are making good progress with introducing women into mining and related disciplines. The South African Mining Charter has set a target of 10% women in mining by 2009. At Anglo Platinum, the proportion of women employees increased to 9.1% in 2006, from 5.8% in 2005. Following research, a dedicated champion was appointed to address the obstacles to more effective employment of women. These obstacles include policies and facilities as well as safety, health and environment aspects.

Anglo Coal has already achieved the compliance target, and aims to reach 14% by the end of 2007. Of the 12.5% of women in the Anglo Coal workforce, 6.6% are in technical fields. Women comprise 8% of the management team. Women in Mining committees were established at all collieries. A Code of Good Practice for pregnancy in the workplace – a particular challenge for women in mining teams – has been compiled and will be rolled out in 2007.

Developing key skills

Literacy the foundation

One of the most important building blocks for skills development is ensuring that unskilled workers are functionally literate and numerate. At Anglo Platinum, adult basic education and training (ABET) is achieved through own-time and company-time programmes. A full-time ABET programme aims to provide 10% of illiterate employees in Anglo Platinum with the opportunity to become literate to a level enabling admission to artisan programmes by 2010. A total of 582 selected employees from Rustenburg Platinum Mines’ Rustenburg section are part of the programme and are due to complete ABET level 4 by the end of 2009. Selected employees are released from work on full salary and are paid an ex gratia bonus to encourage them to concentrate on their studies. R179 million
($26 million) has been allocated to the ABET programme over the next three years.

Simulating tough conditions

Anglo Coal has acquired a simulator designed to instruct and evaluate operators on a range of different vehicles including bulldozers, shovels, haul trucks and draglines. It helps identify common faults and bad driving habits and can be used for both re-training of existing operators or introductory training for new employees. Trainees are taught how to react to a range of challenging conditions, including rain, heavy mist, night driving and slippery driving surfaces, with the topography of the specific mine fed into the simulator. A dragline simulator is being acquired.

Travelling safely

Transport accidents are a major risk for Anglo American Exploration Australia. One of the main concerns relates to employees who do not have knowledge of Australian road rules and driving conditions. To address this a programme focused on establishing core foundation driving skills was developed for all personnel. They then progress to skills in handling a four-wheel drive vehicle in sand or difficult terrain, prevention and recovery techniques, as well as a focus on general care and maintenance of all vehicles.

A light footprint

Preparing for survival in Arctic conditions is an essential aspect of emergency preparedness for exploration teams operating in the far north of Canada.A wilderness survival course was held for employees and contractors at the beginning of the exploration season.

The course addressed the unique and challenging work conditions in this climate and included a mock search-and-rescue simulation at night. The course was also an excellent team building opportunity. Two years ago, contractors were lost in the Arctic winter, one of them for over 60 hours. Fortunately, they found a fishing shack in which to take shelter and were found alive but hypothermic.

When the exploration programme in that area is complete, and after engagement with the local Inuit community, the exploration team will set up emergency shelters, equipped with beds, at Lac Chukotat at the West Raglan and Belanger camps. The tents will be of use to local residents who travel through the area in the winter months for hunting and fishing expeditions.

Investing in tomorrow

Promoting the talents of Chilean pupils

Talented schoolchildren from northern Chile are being given the opportunity to improve their life chances by attending an innovative extra-curricular academic course funded by Anglo Base Metals’ Mantos Blancos mine, which is working in partnership with the Fundacion Andes and the Catholic University in Antofagasta.

Students who show outstanding performance in physical, natural or social sciences, the humanities, engineering and technology are eligible for the programme, which also provides opportunities for their parents and teachers to participate.

In 2006, 300 students were selected. A special emphasis is given to the social development of the pupils, including the need for ethical and responsible behaviour.

Building a good foundation

Mathematics and science in South African schools are due to get an annual boost of some R40 million a year ($6 million), thanks to two new independent trusts established by Anglo American. The Epoch and Optima trusts, which will operate under independent boards of trustees, were set up to disburse funding to further education in mathematics, science and English in South Africa over the next five years.

Chief executive Cynthia Carroll and Margie Keeton, chief executive of Tshikululu Social Investments at the announcement of two trust funds to support the teaching of mathematics, science and English.

Competence in these subjects is essential to South Africa’s continued economic well-being. Young black pupils, in particular, have little opportunity to excel at mathematics and science, given the constraints of schools in poor or rural areas. In 2006, fewer than 5% of matriculants obtained a higher grade pass in mathematics, and only a quarter of these were black pupils.

The funds will be allocated to support a South African government education initiative which supports and sustains the success in schools that have been delivering the best pass rates. The trust funds will also provide scholarships to private schools for scholars from disadvantaged backgrounds, who have an aptitude for mathematics, science and English. In addition, research into the efficacy of other initiatives will be conducted.

The South African government has hailed the creation of the trusts and the efforts Anglo American has made to date in supporting mathematics and science in disadvantaged schools.