A principled approach

Anglo American’s Good Citizenship business principles commit the Group to upholding the values enshrined in the Universal Declaration on Human Rights. This has become an inherent part of our daily practice, through our business principles, and in our work with local communities. In support of that commitment and to address the key risk we have been focused on the training of security personnel, contractors and joint venture partners. Security and human rights In January 2005, we were admitted to the round table which supports the implementation of the Voluntary Principles on

Security and Human Rights.

In January 2005, we were admitted to the round table which supports the implementation of the Voluntary Principles on Security and Human Rights. The Principles provide a best practice benchmark in a variety of situations going beyond conventional political conflict situations to include the handling of community disorders and tense industrial relations situations. We have developed and widely distributed an implementation manual within the Group, including to colleagues in AngloGold Ashanti.

In 2006, the Voluntary Principles were rolled out to all Anglo Platinum operations, including joint venture partners. Risk assessments were undertaken and training was given to 1,300 security personnel. At Anglo Coal South Africa, security personnel were briefed on the Principles. At Highveld Steel, Black Mountain and Namakwa Sands, contracts with security providers were amended to include provisions on the Principles. At Anglo Chile, 95 security personnel were trained on the Principles and they were included in the contracts of the two leading security contractors. At Loma de Níquel in Venezuela, an NGO was engaged to increase security contractor and police awareness of the key tenets of the Voluntary Principles.

Cerrejón focuses on human rights

Anglo American affiliate, Cerrejón, is working in partnership with the Red Cross to raise awareness of human rights in its Colombian coal mining operations. Cerrejón signed an agreement with the Colombian Red Cross in 2006 to run a series of courses on human rights and international humanitarian law for a range of community and national organisations. These included the Colombian army and police force.

This agreement builds on Cerrejón’s human rights programme which provides training for employees, community leaders and public and private security forces around its own operations. The company’s policies are consistent with the United Nations Declaration on Human Rights and the extractive industries’ Voluntary Principles on Security and Human Rights. Continuing its efforts to uphold human rights and ensure the wellbeing of its employees and communities, Cerrejón has established a Social Labour Responsibility Policy. This policy is designed to meet Social Accountability International’s SA 8000 standard for management of labour practices for employees, suppliers and contractors.

Contributing to global debate

We have contributed to the work of Professor John Ruggie, the UN Secretary General’s Special Representative on Business and Human Rights. Our contribution in 2006, through the ICMM, urged greater attention to spreading good practice and more full-hearted support from governments including their support for voluntary initiatives. It mooted the convening of new multi- stakeholder processes on indigenous peoples’ rights and artisanal mining.

Indigenous people

Our aim is to work with indigenous people around the world on the basis of consent, recognising their historical disadvantages and specific cultural norms. Our exploration division and operations have won praise for their approach (see case studies below and Corporate social investment).

Exploration agreement with Sami people

At the exploration phase, the most intensive exchanges occurred with the Sami people in Finnmark, northern Norway. The Sami economy is based on a direct relationship with nature and natural resources, particularly reindeer herding and fishing. Careful explanation of the impacts involved in exploration and of Anglo American’s commitment to observing recognised indigenous rights has led to our being granted permission to work in the area – the first major mining company to be granted a licence.

Bright designs boost community business

Brightly-coloured aboriginal artwork emblazoned on the chests of Anglo Coal leaders was the unexpected but colourful image of their 2006 summit held in Australia.

The leaders were wearing T-shirts designed and produced by Woorabinda artists, part of a local aboriginal population of about 1,200 people living in the area close to the Dawson mine. The T-shirts were the result of one of a number of commercial contracts and partnerships between the mine and local people, established as part of Anglo Coal’s community investment programme. These were identified following the use of the SEAT, to guide a rigorous consultation process to assess the needs of individual communities. Discussions with local people helped identify their priorities and appropriate programmes have now been put in place.

In Woorabinda, employment opportunities are scarce and traditionally the people have had to rely on government funding for survival. It was not money they needed, but practical help. The Woorabinda community had plenty of business ideas but lacked both the expertise to set them up and the commercial knowledge to ensure their success.

Anglo Coal’s employees were able to provide this assistance and helped the community devise a business plan.

Resettlement

Among the most difficult issues for a company to handle in its relations with local communities is the occasional need to resettle communities. In undertaking resettlements, we work on the basis of informed consent and only where there is no realistic alternative.

We observe the World Bank Guidelines and the IFC Safeguard Policies and aim to ensure that, where resettlement occurs, the community facilities are enhanced. We also need to ensure that other players, such as local government, follow through with their responsibilities.

These are difficult processes. Agreement is needed on the basis for compensation, on accurately determining property rights, on suitable, comparable, resettlement sites and ensuring that social networks and capital are not destroyed. Two case studies highlight the problems, one below and one on Governance the key to the corporate role in society.

Woorabinda aboriginal artists have received an economicboost and commercial contractsfollowing a SEAT exercise.

Successful relocation to Tutungeni township

In 2001, when Anglo American commenced construction of the Skorpion Zinc mine about 25 kilometres to the north of the Rosh Pinah Zinc Corporation (RPZC), it reached agreement with RPZC to extend the mine town of Rosh Pinah and utilise common facilities for employees of both mines, with a joint venture, RoshSkor, undertaking the administration.

An informal settlement, known locally as the Sands Hotel, had established itself among a series of hills on RPZC’s mining lease and dangerously close to the mine’s waste rock dumps.

The informal settlement in this isolated and underdeveloped area grew rapidly as people flocked to the area looking for economic opportunities. In June 2002, there were 506 houses with a population of 3,036 inhabitants in the Sands Hotel settlement. By December 2005, there were 1,010 houses with a population of 6,050, representing a 100% increase in 3.5 years.

Because of safety concerns, the informal settlement had to be relocated. Planning commenced in 2002 and the relocation was undertaken in 2006. Five sites were identified initially using biophysical data, social acceptance, observation and experience. The choices were narrowed down to two sites, after which residents were consulted (through a residents’ council) and open days held for site visits.

Town planners demarcated 1,010 residential properties and an additional 32 business sites. A survey was conducted and site allocation was controlled to keep households and neighbourhoods in the same groupings as they had been in the Sands Hotel settlement. Both Skorpion Zinc and Rosh Pinah Zinc mines provided support in the form of vehicles and labour for the relocation process which took place between February and October 2006. Residents have re-erected their houses on the 300 m2 allocated sites. Skorpion Zinc and Rosh Pinah Zinc Corporation each contributed N$1 million ($147,710 each – a total of $295,420) to the water supply and reticulation project. The current water reticulation system includes a pump house, pumps with associated valves, switch gear and manifold for metering water, 2,200 metres of supply pipes, 40,000 litre mounted tanks and electricity supplied by a 25 KVA polemounted transformer. Residents pay for water usage and waste removal administered by the RoshSkor residents’ council.

Forty dry composting ablution facilities were erected. These are cleaned daily and septic tanks are emptied at regular intervals as part of the waste removal service.(see Delivering our stratigic goals)

A close-up of one of the aboriginal designs.