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Report to Society 2006

Distribution of expenditure by cause chart

In 2006, Anglo American and its managed subsidiaries contributed $50.3 million in social investment (including cash donations, gifts in kind and staff time devoted to community benefit projects). This declined from 2005 when the Group contributed $56.7 million.

The most significant factor for the apparent decline is that the Group has changed. In April 2006, AngloGold Ashanti ceased to be a subsidiary and since that date its contributions are no longer included in the Group’s social investment figures. In addition, sustained high commodity prices meant profits were at record levels, so social investment as a percentage of profit before tax fell to 0.55% in 2006 from 1% in 2005 (1.1% in 2004 and 1.5% in 2003).

To mirror the widely admired work of the Anglo American Chairman’s Fund in South Africa, Anglo American plc established a Foundation in 2006 to channel charitable giving to projects in the United Kingdom and other parts of the world where the Group operates. Among the causes supported by the Foundation in its inaugural year were an educational scholarships programme initiated by Mondi, CARE, Engineers without Borders, Children of the Andes, the HIV and AIDS charity Starfish and UK homelessness charities Centrepoint and the Connection at St Martin-in-the- fields in London.

Applying business skills to boost education

For the eighth successive year, students from Thomas Telford school in the West Midlands, UK, have kept their school at the top of the government’s league tables across both state and independent sectors for general certificate of secondary education results.

Their record is particularly impressive because the school accepts students of all abilities in an economically deprived area. This extraordinary success has been built with Tarmac’s help. It has provided facilities and also guided the school in applying a business-like approach to education.

The school was originally founded as a City Technology College established by the government. Accountable directly to the Department for Education, these specialist schools have a particular emphasis on science, mathematics and technology, as well as close links with business and industry.

Four senior Tarmac employees sit on the school board. They encourage the school to think and work differently. The school only teaches two subjects a day to allow teachers to develop ideas in class. There is no separate staff common room (to encourage an inclusive attitude) and high standards of dress and behaviour are required. Tarmac provides workplace opportunities for students to learn about business and Tarmac staff provide career advice at the school.

Community development

Since 2005, employees at the Chagres Smelter in Chile have been working with the local community, one of the poorest in the region, to improve the leadership capability. Groups of neighbours were formed to assist the leaders of the various community organisations in turning ideas into concrete projects.

The ideas were identified in a socio-economic assessment exercise carried out in 2004 as well as in more recent surveys. Some projects, such as the Catemu Goat scheme and Apicultural Agricultural Farm were implemented, but trust remained low.

The community development teams are in charge of designing and implementing projects which assist the community – on the condition that they participate by donating voluntary time, material or financial resources. The results have been good. Trust is improving and knowledge about the operation’s role in community well-being has improved.

Community development teams recently had an opportunity to learn about the scope of the plan and attend a conflict resolution workshop, which they described as enriching for both their community work and their personal lives.

Dawson employees visit Woorabinda

In describing his vision of a transformed Woorabinda community – one in which children would study, find jobs and return home in shiny new vehicles of their own – Steve Kemp, the co-ordinator of the Community, Development, Employment Program (CDEP) in Woorabinda set in motion innovative community interaction. Woorabinda is a community faced with issues such as low employment, domestic violence, alcoholism and drugs, all of which have a negative effect on the children.

At the Dawson Leadership Summit, Kemp told the participants about the positive spin-offs brought to the community by a Shared Responsibility Agreement (SRA). The SRA was signed by Anglo Coal with the Woorabinda Council and the Federal Government of Australia.

Among the many examples he mentioned were the 140 hand-painted T-shirts that Anglo Coal ordered in May 2006 to celebrate the relationship that was building between the company and the community. The project gave the local artists an opportunity to demonstrate their skills, as well as gain confidence in their ability to meet tight deadlines and produce high quality products. It provided an opportunity for 140 leaders in Anglo Coal Australia to learn some of the cultural ways of aboriginal life and participate providing practical help.

Kemp’s vision sparked ideas and a few weeks later Greg Lang, Lindsay Lang, Greg Woolard, Marc Johnson, Adrian Pennett and Wayne Dufty, from our Dawson mine, were planning a trip on their Harley Davidsons to Woorabinda state school in a bid to inspire students. The growl of the Harley Davidson motorcycles and the message of hard work and making dreams come true were a big hit with the whole town. The bikers returned to the Woorabinda high school in mid-February with more of their Dawson colleagues to continue their engagement with the community.

 

Helping HIV-positive children

Employees from Anglo American’s corporate office in Johannesburg raised R96,000 ($14,180) for Cotlands’ Soweto home-based care project through the World AIDS Day Live and Let Live challenge in December 2006.

Cotlands provides a care centre for abused or abandoned HIV-positive and terminally ill children. The centre helps around 2,000 children every month through residential care and outreach programmes. The money will help create a food garden, renovate the Soweto home and develop incomegenerating projects such as sewing and beading.

Continued support from Anglo American, including a series of donations over the past five years totalling over R50 million ($7,4 million) from the Chairman’s Fund, has helped the centre improve its facilities and the quality of life for the children.

Aboriginal children from Woorabinda turned out to hear the message, from Australia’s Dawson mine employees, of rewards for hard work.

Volunteering in the community

In his spare time, Themba Sibisi, a former Anglo American security guard, has run a monthly soup kitchen in Nomzamo Park, an informal settlement in Soweto, South Africa, since 2000. His personal initiative and leadership have attracted the help of Anglo American’s employees in Johannesburg who realised that a monthly soup kitchen was simply not enough to tackle the deprivation in the area.

After visiting the community and discussing the needs of local people, the volunteers started a number of new, more sustainable projects. One of these involves helping residents to grow their own vegetables.

A competition was launched for the best-kept vegetable garden, with children and unemployed women given a helping hand to start the gardens. One resident has had such success that she is now able to sell some of her excess produce.

In 2006, local women raised concerns about AIDS. In response, an Anglo American nurse and HIV-positive AIDS counsellor spoke at a community meeting. This has led to plans to provide more information from health professionals. Volunteers have also contributed blankets, toys and crayons to a day care centre for children which was established by a local resident. Sixty-five babies are now cared for every day.

Kumba Iron Ore teaches skills to boost local development

Sishen’s Tshono leather craft and tannery project has progressed within a few years from a subsidised, struggling, start-up operation to a selfsustaining private business with money in the bank.

Launched in 2002, in partnership with the Sishen mine in South Africa’s Northern Cape province, it is one of many local economic development projects run by Kumba Iron Ore.

Local women were given training in leather making to create new job opportunities in the area. After initially struggling to make a profit, their big break came when the crafts were exhibited at South Africa’s largest interior décor show, Decorex. Demand soared. The women showed considerable business talent, from design to manufacture, and there are now plans to extend the business. Sishen has handed over the Tshono project to the crafters.

Skills development is the key philosophy behind Kumba’s community projects. The Itereleng skills centre has been set up near the Thabazimbi mine to help train local people in skills ranging from computer literacy o construction and pottery. This is helping local people gain the necessary know-how to start up new businesses which can stimulate economic development in the area.

Socio-economic engagement at Dawson mine

Better housing and health services and more open communications are top of the issues list for the community close to Dawson coal mine in Queensland, Australia.

Their concerns are shared by mine management as accommodation constraints make it difficult for the mine to attract and retain skilled staff a result of the global resources boom in all sectors. As a result, the Moura joint venture, which runs the mine, is going to be working closely with the community and government to develop solutions.

A socio-economic assessment conducted at Dawson enabled community stakeholders to raise the need for better regional infrastructure, services and facilities. As a result, the mine plans to increase its use of local businesses and liaise with state and regional government to address the broader community support issues. They will support community improvement programmes through education and training and education opportunities and targeted funding for the local community.

A set of key performance indicators has been developed to monitor the social and economic health of the community and provide the information needed for communicating with stakeholders.

The mine obtained important feedback from stakeholders and also learned that it required improved data collection and better communication between departments.

Becoming part of the community in the Philippines

Community development workers in Anglo American Exploration’s joint venture in the Philippines are determined to make the community their partners in development programmes.

To ensure that they understand their needs and concerns, they all immerse themselves in the community as house guests of different families. In this way, the community workers develop first-hand knowledge, which ensures the joint venture contributes to the well-being of local people while also tackling any concerns about company operations.

The community development programme covers education, infrastructure, capacity building, health and environment management, and sports and cultural activities. The emphasis on partnership and full consultation in all activities ensures that the company funded projects are in line with what the community wants and needs.

A community centre has been established to provide a venue for community meetings and activities. It has information materials about the company and offers the free use of computers for research to support the different community projects. The centre offers a central point where local people can visit if they have questions or concerns about company activities.

Kumba Iron Ore’s Sishen housing project

In many of our operational areas there is a critical need for housing and the Group has promoted schemes to enable employees to own their own homes. Kumba Iron Ore’s Sishen mine was one of the first businesses in South Africa’s Northern Cape province to implement this approach. The business has invested R5 million ($0.7 million), which was made available to the Gamagara local authority for the development of additional lowcost housing to meet community needs in the local town of Kathu. Approximately 250 houses have been completed to date, and Sishen is planning to extend the scheme to include an additional 600 houses.

Raising environmental awareness in the community

Well cared for and tidy land surrounds the many schools close to the Union section of Rustenburg Platinum Mines in South Africa. But it was not always this way. Mine workers noticed the general environmental neglect of the area and decided to do something about it.

In partnership with the tribal and local authorities, Union mine works with local school children to teach them to care for and value the environment around them.

Every year, students from more than 20 schools are taken to the nearby Pilanesberg national park. They are taught about basic environmental principles and nature conservation in workshops and discussions. The students are required to carry out environmental projects at their respective schools and communities, and these are later judged in a competition.

This scheme has successfully encouraged young people to get involved in solving environmental problems in their community. There is now an anti-litter campaign in the area to which the mine contributes waste bins, signs and gloves used by volunteers who collect litter.

Union mine spends approximately R100,000 ($14,771) each year on these community programmes. Not only has this raised environmental awareness among young people in the area, but it has also helped improve relations between the mine and surrounding communities.

Promoting education and careers in South Africa

Mondi has established a permanent education and career development centre in Piet Retief in the Mkhondo region of South Africa, following the overwhelming success of its three-day career fair in 2004. The centre provides a one-stop learning facility designed to meet the needs of young people and adults in the community. It is managed in partnership with the Mpumalanga province’s Department of Education, the Mkhondo municipality and other mining businesses.

A key focus is to inspire interest and improve performance in science and mathematics by providing support for teachers and students. Around 35,000 young people each year will be able to explore possible careers through the facility’s Career and Life Skills Centre, where the emphasis is on skills for jobsearching and self-employment.

The Further Education and Training Skills Development Centre promotes entrepreneurship, providing much-needed training and support for those setting up small businesses.

Anglo Platinum has a programme to raise environmental awareness in school pupils from schools close to its operations.

Highveld Steel funds social and environmental projects

Highveld Steel funds a number of projects to improve the quality of health, education and the local environment in the South African communities where it operates.

The company operates a reward scheme to encourage schools to improve the quality of their teaching. In addition, a wide range of equipment – from photocopiers to prefabricated classrooms – was donated to local schools in Witbank and Roossenekal in 2006.

Highveld Steel is contributing R180,000 ($26,588) to an NGO, Food and Trees for Africa, which runs environmental awareness workshops and encourages schools to monitor their environmental impacts. Highveld is working in partnership with Anglo American Chairman’s Fund and the Mpumalanga Department of Health to build a primary healthcare clinic near Witbank. This is part of a R700,000 ($103,397) initiative to combat HIV/AIDS, cancer and drug abuse in the area.

Winning trust through rehabilitation

The fragile Arctic environment repairs very slowly and on the advice of an environmental specialist better sidewalks were constructed at the West Raglan camp to keep people off the tundra and protect it from further damage. Recovery is clearly in progress. Inuit leaders who visited West Raglan have expressed gratitude at the responsible attitude being shown by Anglo American teams. At the end of the exploration programmes, all the remaining food from the camps will be distributed to needy people in the local community.

 

At a glance:

  • Responding to community needs
  • Voluntary initiatives
  • Developing economic
    connections

 

 

 

Employees at Anglo American South Africa donated $14,180 to the Cotlands home-based care project on World AIDS day.

 

Employees from the Australian Dawson mine used their passion for motorcycles to inspire local children to work hard at school and eventually have their own vehicles.

 

A flourishing vegetable garden in the Nomzamo informal settlement in Soweto, South Africa.

 

Phillip Mungadi and Themba Sibisi showing community members in Soweto, South Africa, how to plant potatoes in a tyre to make best use of limited garden space.