a global leader in mining and natural resources - anglo

Anglo American plc is one of the world’s largest mining and natural resource groups. With its subsidiaries, joint ventures and associates, it is a global leader in platinum group metals and diamonds, with significant interests in coal, base and ferrous metals, as well as an industrial minerals business. The Group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia.

A global leader in miningand natural resources

www.angloamerican.co.uk

Contents

Foreword

Anglo American at a glance – Ourbusinesses

– Ourlocalfootprint

– ContributingtotheSouthAfricaneconomy

Black Economic Empowerment – BroadeningparticipationintheSouthAfricaneconomy

– AngloZimele-Promotingindependencethroughenterprisedevelopment

Safety – Rethinkingoursafetyapproach

Our people – Makingpeopleapriority

– Acquiringanddevelopingrelevantskills

– Buildingadiverseworkplace

Sustainable development – Focusingonthetriplebottomline

Anglo American Chairman’s Fund – Transforminglives

HIV/AIDS – OvercomingthechallengeofHIV/AIDS

The road ahead

T R A N S F O R M AT I O N R E P O R T 2 0 0 7

Ferrous Metals - Scaw Metals BEE Transaction Signing with Izingwe Holdings,

Southern Palace Holdings and Shanduka Resources - 1 March 2007

Note:Theexchangerateusedthroughoutthisreportisasat31December2007:US$1=R7.05

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Anglo American South AfricaTransformationReport20072

Resourceswillacquirea21%stakeinScawSA,whileabroad-basedemployee trustwill acquirea5%equity stake in theR5,3billionSouthAfricanbusiness.

• A landmark empowerment transaction with Anglo Platinumwill result in Historically Disadvantaged South Africans(HDSAs) owning and managing Anooraq Resources andMvela Resources, the third and fifth largest platinum groupmetal (PGM) companies, respectively, in the world. ThesetransactionsarevaluedatR35billion.

• An empowerment deal in which Samancor Manganese(owned 60% by BHP Billiton and 40% byAngloAmerican)isinvolvedinthecreationofanewminingcompany,HotazelManganeseMines.ThiswillresultinincreasedparticipationintheeconomybycommunitiesintheNorthernCapeprovince.Eventually,26%ofHotazelMineswillbetransferredtotheBEEpartners.

• TheunbundlingoftheTongaat-HulettGroupintotwoseparatelylistedcompanies:

- The first involved Ayavuna Women’s Investments andSangena Investments becoming anchor BEE partners byacquiringa25%stakeinTongaat-HulettforR21billion.

- The second saw Imbewu Consortium and the MakanaConsortiumacquiringa15%stake inHulamin,valuedatR990million.

All these transactions will achieve sustainable and broad-basedempowerment through the participation of communities, womenand the introduction of employee share-ownership schemes(ESOPs),whichbenefitallAnglo’sSouthAfricanemployeesacrossour operations. In 2007 it was agreed that an employee share

Foreword

Thelongyearsofapartheidleftalegacyofinequality,povertyandexclusionfromopportunityformanySouthAfricans.AngloAmericanis committed to contributing to South Africa’s development andaddressing these challenges by promoting social, economic andcultural transformation.The Transformation Report sets out someofthewaysinwhichweareembracingthechallengeofchangeandcontributingtoSouthAfrica’slong-termsustainabledevelopment.

These initiatives are in keeping with the vision of our founder,Sir Ernest Oppenheimer, of creating wealth for our shareholdersandmakingalastingcontributiontothecommunitiesinwhichweoperate.

In 2007, Anglo American plc achieved record operating profitof R71,2 billion and underlying earnings increased 5% toR40,9 billion. This strong performance is underpinned by one ofthe strongest and highest quality project pipelines in the sector,with projects already under way or approved amounting toR108 billion. Of this amount, just over R38 billion has beencommittedtoprojectsinSouthAfrica.

Intheyearunderreview,wecontinuedtoinvestinandgrowourSouthAfricanoperations,underscoringourcontinuedcommitmentto the country and its economy. A highlight was the recent(29April2008)grantingoftheconversionof‘oldorder’rightsinto‘neworder’miningrightsforallourSouthAfricanminingoperations,with the exception of two platinum joint ventures with RoyalBafokeng Resources and African Rainbow Minerals which requireseparateprocessesofengagement.Theseapplicationsarecurrentlybeingprocessedbasedonjointsubmissionsandrepresentationsbyallstakeholders.

Anglo American produces some 2% to 2.25% of South Africa’sGDP and is the largest private sector investor in the country.We are also the largest private sector employer in South Africa,with approximately 77,000 permanent staff and around 35,000contractors.SincetheestablishmentofAngloAmericanplcin1999,theGrouphasinvestedR158billion(R197billionin2007terms)inSouthAfrica.In2007alone,thecompanycontributedR11billionintaxestoSouthAfrica.

In addressing transformation, major milestones were reachedin 2007, when no fewer than seven significant Black EconomicEmpowerment (BEE) transactions were signed or announced. NootherSouthAfricancompanyhasundertakenBEE transactionsonsuchawidefront,insuchashortperiod,withsomanyparticipantsincluding employees and local communities. These transactionswere:• ThecreationofAngloCoalInyosi,anempoweredcoalcompanyvaluedatR7billion.

• AScawMetalstransactionwhichhasresultedintheformationof a new empowered company, Scaw South Africa (ScawSA). Through this transaction a BEE consortium comprisingIzingwe Holdings, Southern Palace Holdings and Shanduka

Philip Baum (Acting Chief Executive)

Anglo American South AfricaTransformationReport2007 3

(ART)toallHIV-positiveemployees inoneof thebiggestprivatesector HIV/AIDS programmes in southern Africa. Our successfulvoluntarycounsellingandtesting(VCT)programmeisfundamentaltoourHIV/AIDSstrategy.In2007,justover70%ofthe77,000employeesthroughoutsouthernAfricaunderwentVCTtesting.

Weregardourroleintheupliftmentofthecommunitiesassociatedwith our operations as key to our transformation agenda. Ourinternationally recognised Socio-Economic Assessment Toolbox(SEAT) helps us to understand the perspectives and concerns ofthecommunitiesclosertoouroperations.AllAngloCoal’scollieriesinSouthAfricahavecompletedtheSEATprocess,andin2007wemadetheSEATassessmentmandatoryforallourmajoroperations.

The safety of our employees is vital. The appointment of AngloAmericanplc’snewchiefexecutive,CynthiaCarroll,hasaddedfurtherimpetus to our safety drive. AngloAmerican’s Safety LeadershipSummits in JuneandOctober2007culminated in thecreationofourSafetyImprovementPlan,aframeworkforachievingamarkedimprovementinoursafetyperformanceoverthenextthreeyearsbytargetingZeroHarmtoouremployees.Greateremphasishasbeenplacedontheaccountabilityofour leadersaswebelievethatwewillattainourobjectivesthroughcommittedleadership.Asleaders,wearecontinuallysendingoutastrongmessagethatoursafety-basedstandardsandproceduresaretrulynon-negotiable.

Finally, our commitment to South Africa’s development isunderpinnedbyourcontinuedsubstantialfundingoforganisationssuchas theNationalBusiness Initiative,BusinessTrust,BusinessAgainst Crime, Business Leadership South Africa, Business UnitySouth Africa, NEPAD Business Foundation and the South AfricanWomeninMiningAssociation.

Lastyear,wecelebratedAngloAmerican’s90thanniversary.Lookingback, we have much to celebrate and much to anticipate as wecontinuetocontributetoSouthAfrica’stransformation.Ihopethisreportwillgiveyouadeeperunderstandingofouractivities,targetsandcommitmentsaswecontinuetofocusonimprovementinfourkeyareas–engagement,integration,performanceandgrowth.

ownershipprogrammeforthoseemployeesnotcurrentlyreceivingsharesthroughtheexecutiveschemeswouldbefinalisedforAngloPlatinum, Anglo Coal South Africa and corporate functions inJohannesburg.

Anglo American views broad-based BEE as a strategic businessimperative and, accordingly, I am pleased to report that ourBEE procurement and enterprise development spend in 2007amountedtoR17,3billion,anincreaseof41%from2006(2006:R12,3 billion), representing 37% of total available procurementspend.

Equally pleasing was an increase in the number of HDSAs inmanagementto42%(2006:39%),reflectingourcommitmenttopromotebroadparticipationateveryleveloftheoperation.Women,too,arebeingincreasinglyrepresentedinseniormanagementrolesin South Africa, with the figure at the end of 2007 standing at18%,upfrom14%ayearearlier.Ourhumancapitaldevelopmentstrategies were externally recognised, with Anglo Coal’s fourth-placedrankinginthe“largecompanies”categoryinDeloitte’s2007‘Best Company to Work For’survey.

Fromapersonalpointofview,IhavefoundithighlyrewardingtohavebeeninvolvedintheshapingofAnglo’sBEEpoliciesandtheestablishmentofoursmallbusinessunit,AngloZimele, in1989.This unit facilitates entry for emerging black business intoSouthAfrica’s economicmainstream. External recognition is affirmationthatwearesucceedinginourgoalsand,inNovember2007,AngloZimeleclinchedadoublewinattheSouthAfricanBignewsEnterpriseDevelopmentAwards in Johannesburg.TheunitwashonouredastheBest Internal Corporate Enterprise Development ProgrammeandtheMost Outstanding Overall Enterprise Development Programme.Internationally, Anglo Zimele co-hosted a major internationalroundtableonenterprisedevelopmentandwasrecognisedasoneof the leading models in the world by the International FinanceCorporation–theprivatesectorarmoftheWorldBank.

Our sustainable development and corporate social investment(CSI) initiatives continued to receive accolades in 2007.Notableamongour sustainabledevelopment initiativeswereAngloCoal’seMalahleni Water Reclamation and Basa njengo Magogo projectswhichwon theMail & Guardian’s Greening the Future awardandthesocio-economiccategoryoftheNedbankCapitalGreen Mining Sustainabilityawards,respectively.

TheAngloAmericanChairman’sFundcontinuedtoplayaleadershiprole inCSI inSouthAfrica.Fortheseventhconsecutiveyear,theChairman’sFundwas rated thebestcorporategrantmaker in theTrialogueCSI Handbook survey. In addition, the Chairman’s FundLimpopoRuralSchoolsProgrammewonthe Investing in EducationcategoryoftheMail & Guardian’s Investing in the Futureawards.

The HIV/AIDS pandemic is one of the greatest challenges facingSouthAfrica.In2002,webeganprovidingfreeanti-retroviraltherapy

Philip Baum

Acting Chief Executive Anglo American South Africa and

Chief Executive Anglo Ferrous Metals and Industries


Anglo American at a glance

Anglo American aims to become the leading global mining company, committed to delivering operational excellence in a safe and responsible way and adding value for shareholders, employees, governments, the communities associated with our operations, customers and suppliers. The Group has a range of high quality, core mining businesses, with balanced participation across precious, base and bulk commodities. It is geographically diverse, with an operating footprint spanning 45 countries. Our five core mining businesses are Platinum, Diamonds (independently managed), Base Metals, Ferrous Metals and Coal.

OUR BUSINESSES

FERROUS METALS

Business profile•OperationsaremainlyinSouthAfrica,SouthAmerica,CanadaandAustralia

•Ironore,manganeseandsteelproductsusedinminingandinfrastructuresectors

Products and uses •Ironoreisthebasicrawmaterialusedinsteelproduction

•Manganeseisakeycomponentinsteelmaking•Steelproductsusedinconstructionandmostindustries

DIAMONDS

BASE METALS

Business profile•Comprisesprimarilycopper,nickel,zinc,phosphates,niobiumandmineralsandsoperations

•OperatesinSouthAmerica,southernAfricaandIreland

Products and uses •Copperisusedmainlyinwireandcable,aswellasinbrass,tubingandpipes

•Zincischieflyusedforgalvanising•Nickelismostlyusedintheproductionofstainlesssteel

INDUSTRIAL MINERALS

Business profile•TarmacistheNo.1UKproducerofaggregatesandasphaltandaleadingproducerofready-mixedconcrete

•ItsoperationsareprimarilyintheUK,ContinentalEuropeandtheMiddleEast

Products and uses •Tarmacisinvolvedintheproductionofcrushedrock,sand,gravel,concreteandmortar,lime,cementandconcreteproducts

Business profile•DeBeers1accountsforabout40%byvalueofglobalroughdiamondproduction

•Theworld’slargestsupplierandmarketerofgemdiamonds

Products and uses •About30%ofmineddiamondsbyweightaresuitableforuseinjewellery

•Somenaturalstonesareusedforindustrialpurposessuchascutting,drillingandotherapplications

COAL

Business profile•AngloCoalisoneoftheworld’slargestprivatesectorcoalproducersandexporters

•ItsoperationsareinSouthAfrica,Australia,Colombia,VenezuelaandCanada

Products and uses •About40%ofallelectricitygeneratedgloballyispoweredbycoal

•Around70%oftheworld’ssteelindustryusescoalanditisalsoanimportantfuelforotherindustries

PLATINUM

Business profile•Theworld’slargestprimaryproducerofplatinum,accountingforaround37%oftheworld’snewlyminedplatinumoutput

Products and uses •Primarilyusedinautocatalystsandjewellery

•Alsousedinchemical,electrical,electronic,glassandpetroleumindustriesandmedicalapplications

1DeBeersisanindependentlymanagedassociateoftheGroup.DatafromDiamondoperationsarenotincludedinthedatawereport.


2007 Global performance highlights In2007,theGroupachievedrecordoperatingprofitofR71,2billionandunderlyingearningsincreased5%toR40,9billion.TherewerestrongperformancesfromBaseMetals,Platinum,FerrousMetalsandIndustrialMinerals.AngloAmericanhasasubstantialreserveandresourcebase, complementedbyoneof the strongest project pipelines inworldmining,withprojects alreadyunderwayor approvedamountingtoR108billion,andafurtherR225billionunderconsideration.

“The Group achieved record operating profit of R71,2 billion and underlying earnings increased 5% to R40,9 billion.”

OUR LOCAL FOOTPRINT

PlatinumAngloPlatinumLimited,basedinSouthAfrica,istheworld’sleadingprimaryproducerofplatinum,accountingforabout37%ofglobalnewly mined output. It mines, processes and refines the entireplatinumgroupmetals(PGMs)range:platinum,palladium,rhodium,ruthenium, iridium and osmium. Although PGMs are the primaryproductsofitsoperations,basemetalssuchasnickel,copperandcobaltsulphateareimportantsecondaryproductsandaresignificantcontributorstoearnings.

Anglo Platinum currently owns five mining operations, a tailingsretreatment facility, three smelters, a basemetals refinery and apreciousmetalsrefinery,allintheLimpopoandNorthWestprovincesofSouthAfrica.

Thecompany’s100%ownedminingoperationscompriseRustenburgPlatinum Mines’ Rustenburg, Amandelbult and Twickenhamsections, aswell asPotgietersrust PlatinumLimited (PPRust) andLebowa PlatinumMines Limited, 51% of which is held for sale.RustenburgPlatinumMines’UnionSectionis85%held,withaBEEconsortium,theBakgatla-Ba-Kgafelatraditionalcommunity,holdingtheremainder.

AngloPlatinumalsohasa50:50jointventurewithaBEEconsortium,ledbyAfricanRainbowMineralsovertheModikwaplatinummine;ajointventurewithRoyalBafokengResources,aBEEpartner,overthecombinedBafokeng-RasimoneplatinummineandStyldriftproperties;andajointventurewithXstrataovertheMototolomine.Inaddition,AngloPlatinumhasjointventureswithAquariusPlatinumcoveringtheshallowreservesoftheKroondalandMarikanaminesandportionsofthereservesatAngloPlatinum’sRustenburgSection.

CoalAngloCoalistheworld’ssixthlargestprivate-sectorcoalproducerand exporter, with operations in South Africa, Australia, SouthAmericaandCanada.InSouthAfrica,AngloCoalownsandoperateseightminesandhasa50%interestintheMafubemine.FourminesareintheWitbankcoalfield,whichsupplysome20milliontonnesperannum(Mtpa)ofthermalcoaltotheexportandlocalmarketsandasmallamountofmetallurgicalcoaltotheexportmarket.CoalisexportedthroughtheRichardsBayCoalTerminal,inwhichAngloCoalhasa27%interest.Inaddition,theNewVaal,NewDenmarkand Kriel mines supply some 35 Mtpa of coal to Eskom, whileIsibonelomine produces around5Mtpa for Sasol Synthetic Fuelsundera21-yearsupplycontract.

The new double-contact double-absorption acid plant at Waterval Smelter that will allow 99% fixation of sulphur and SO2 emissions to drop below 20t/day

Washing plant at Anglo Coal’s Greenside Colliery, with the coal stockpile in the foreground


Black Mountain Mine - a conveyor belt transports coal

Excavator working a stockpile at Saldanha Bay, Sishen’s export port on South Africa’s Atlantic Coast

One of the BDVC diamond sorting floors at Orapa House where the diamonds are sorted into the various sizes and grades

Base MetalsAngloBaseMetalshas interests in14operations insixcountriesproducing copper, nickel, zinc, niobium, phosphate fertilisers,titaniumdioxideandzircon,togetherwithassociatedby-products,includinglead,molybdenumandsilver.

InsouthernAfricatheBlackMountainandSkorpionminesproducezincandassociatedby-productssuchaslead,copperandsilver.InJanuary2007,theblackempowermentcompanyExxaroResourcesagreed to acquire Anglo Base Metals’ Namakwa minerals sandsoperationinSouthAfrica,whichproducestitaniumdioxide,zirconandrutile,togetherwithassociatedby-products,inadditionto26%of BlackMountain and Gamsberg, a large undevelopedmoderategrade zinc deposit located in the Northern Cape province. BlackMountainandGamsbergwillremainsubsidiariesof,andcontinuetobeoperatedandmanagedby,AngloBaseMetals.

Ferrous MetalsAnglo FerrousMetals’ primarybusiness is ironore.The companyholdsa63%shareholdinginKumbaIronOreinSouthAfricaandacontrollinginterestintheMinas-RioandAmapáironoreprojectsinBrazil.Otherinterestsprincipallycomprisemanganeseoreandalloyoperations and carbon steel products, represented by SamancorManganeseandScawMetals.

DiamondsAnglo American’s diamond interests are represented by its 45%shareholdinginDeBeers,theworld’sleadingdiamondbusiness,withexpertiseintheexploration,miningandmarketingofdiamonds.DeBeersproducesapproximately40%oftheworld’sroughdiamondsbyvalueandisstilltheworldleaderindiamondsafter120years.DeBeersandMoëtHennessyLouisVuittonhaveestablishedahigh-endretailjewelleryjointventure,DeBeersDiamondJewellers,withstoresinthemostfashionableareasinsomeoftheworld’sgreatcities.

CONTRIBUTING TO THE SOUTH AFRICAN ECONOMY

Anglo American at a glance (continued)


The Nelson Mandela Bridge: About 1,000 tonnes of stay cable strand, manufactured by Anglo Ferrous Metals Industries’ Scaw Metal Group’s Wire and Strand factory, were used in the construction of this landmark linking the Johannesburg CBD and Braamfontein

Largest private sector investor in South AfricaAnglo American produces some 2% to 2.25% of South Africa’sGDP and is the largest private sector investor in the country.SincethelistingofAngloAmericanplcin1999,wehaveinvestedR158billion(orR197billionin2007terms)inSouthAfrica.Thecompany contributed R11 billion in taxes to the South Africaneconomyin2007.

Largest private sector employer in South AfricaAngloAmericanisthelargestprivatesectoremployerinSouthAfrica,employing77,000peopleandapproximately35,000contractors.Thisfigureincludes:

• AngloPlatinum-53,000permanentemployeesand28,000contractors

• AngloCoal–9,000permanentemployeesand2,700contractors

• FerrousMetalsandIndustries-12,000permanentemployeesand4,200contractors

• BaseMetals-2,000permanentemployees• Corporatecentre–1,000permanentemployees.

2007 Anglo American South Africa’s business performanceAnglo’sSouthAfricanbusinessescontributed44%oftheGroup’sturnover and 45% of operating profits in 2007. The Group hasan approved project pipeline of R108 billion, of which just overR38billion(35%)isinSouthAfrica.AngloAmericanhasasignificantshareof theSouthAfricanmarket inplatinumgroupmetals, ironore,zinc,diamonds,coalandmanganese.

Recognised Corporate Social Investment (CSI) leader in South Africa• The total Anglo American South Africa spend on CSI in2007wasR288,5million.Ofthisamount,R69millionwaschannelled through the Anglo American Chairman’s Fund,which is responsible for South Africa’s largest corporateinvestmentineducationinfrastructure

• In2007,theAngloAmericanChairman’sFundwasvotedbyNGOs as South Africa’s best grant maker for the seventhconsecutiveyearbyTrialogueintheirCSI Handbook survey

• TheFundreceivedtheInvesting in EducationAwardintheMail and Guardian’s Investing in the Future awards.


Largest HIV/AIDS programme in the world• AngloAmerican’sHIV/AIDSprogrammeisoneofthebiggestprivatesectorHIV/AIDSprogrammesinsouthernAfricaandisinternationallyrecognisedforitsexcellence

• 95%of thoseemployeesonanti-retroviral treatment (ART)arefitenoughtodonormalwork

• Anglo American’s Voluntary Counselling and Testing (VCT)participationrateinSouthAfricaisjustover70%.

Empowerment highlights • SevensignificantBEEtransactions• Increaseof41%intotalBEEprocurementspend,amountingto37%oftotalavailablespend

• AngloZimelesupported66businesses,whichprovided jobsto4,403individualsin2007

• ESOPs for those employees not currently receiving sharesthroughotherexistingshareschemeswerefinalisedforAngloPlatinum, Anglo Coal South Africa and the Johannesburgcorporateoffice.


Black Economic Empowerment (BEE)

Anglo CoalIn 2007, the creation of Anglo Coal Inyosi, an empowered coalcompanyvaluedatR7billion,wasannounced.ABEE consortiumledbyLithembaConsortiumandPamodziCoalwillacquire27%ofAngloCoal Inyosi.AngloCoal Inyosiwillhaveabeneficiarybase,benefiting inexcessof27,000 individuals, themajorityofwhomarewomenHDSAs.AngloCoalInyosiwillincorporateKrielcollieryaswellas theElders,Zondagsfontein,NewLargoandHeidelbergprojects.

Anglo PlatinumThelandmarkempowermenttransactionsbetweenAngloPlatinum,Anooraq Resources and Mvela Resources will result in HDSAsowning and managing the third and fifth largest companies inthe global platinum industry. In terms of the transactions, AngloPlatinum will sell 51% of Lebowa Platinum and an effective1% of the Ga-Phasha project for a total consideration ofR3,6 billion to Anooraq. Mvela Resources will purchase AngloPlatinum’s50%stakeintheBooysendalProjectaswellasa22.4%directinterestinNorthamforatotalconsiderationofR4billion.

Samancor ManganeseSamancor Manganese, 60% owned by BHP Billiton and 40%ownedbyAngloAmerican,announcedanempowermentdealwithNtsimbintleMininginDecember2007,relatingtothecreationofanewminingcompany,HotazelManganeseMines(HotazelMines).Ntsimbintlewillvendinportionsofitsprospectingrightscontiguousto Samancor’s Mamatwan and Wessels mines near the town ofHotazelinexchangefora9%interestinHotazelMines.Eventually,26%ofHotazelMineswillbetransferredtotheBEEpartners.

At a glance• SevensignificantBEEtransactionsduring2007• Increaseof41%intotalBEEprocurementspend,amountingto37%oftotalavailablespend.

OverviewBy accelerating BEE, Anglo American is contributing to broadening the base of the South African economy and promoting participation in the economy by all citizens. Major milestones were reached in 2007 when seven significant BEE transactions across our operations in South Africa were announced.

BROADENING PARTICIPATION IN THE SOUTH AFRICAN ECONOMY

Scaw MetalsAScawMetalsempowermenttransactionwithBEEpartnersIzingweHoldings, Southern Palace Holdings and Shanduka Resources forits South African assets has resulted in the formation of a newempoweredcompany,ScawSouthAfrica(ScawSA).Thetransactioninvolves the BEE consortiumacquiring a21%stake in Scawandthebroad-basedemployeetrustacquiringa5%equitystakeintheR5,3billionSouthAfricanbusiness.

From left: Chairman of Mvela Resources Lazarus Zim, joint acting chief executive of Anglo Platinum Norman Mbazima, Cynthia Carroll and Anooraq Resources chief executive Tumelo Motsisi at the signing of the Anglo Platinum BEE deal. Anooraq Resources and Mvela Resources are now the third and fifth biggest platinum companies in South Africa


Scaw Metals BEE Transaction Signing with Izingwe Holdings, Southern Palace Holdings and Shanduka Resources - 1 March 2007

Tongaat-Hulett Group2007 saw the unbundling of the Tongaat-Hulett Group into twoseparatelylistedcompanies.Intermsofthistransaction,AyavunaWomen’s Investments and Sangena Investments became anchorBEE partners by acquiring a 25% stake in Tongaat valued atR2,1 billion, and Imbewu Consortium and Makana InvestmentConsortium acquired a 15% stake in Hulamin, valued atR990million.

Employee Share Ownership Plans (ESOPs)During2007, ESOPs for those employees not currently receivingshares through other existing share schemes were finalised forAnglo Platinum, Anglo Coal South Africa and the Johannesburgcorporate office. These share schemes are designed primarily toenhanceemployeeshareownershipinthecompany.

Enterprise developmentIn 2007, Anglo American’s South African businesses spentR17,3 billion on consumables, services and capital from black-owned small and medium enterprises. This was a 41% increaseonthe2006figureofR12,3billionandamountsto37%oftotalavailablespend(excludinggoodsandservicesfromparastatalsandmunicipalities).

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2005

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2006

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2007

17.3

Anglo American’s BEE procurement andbusiness development spend (excluding De Beers)

Rand

bill

ion


Black Economic Empowerment (BEE) (continued)


Supply chain development Supply chain development, managed by Anglo Zimele, involvesassisting the Group’s divisional procurement departments inidentifyingpotentialBEEsuppliersandensuringthechannellingofbusinessopportunitiestoblack-empoweredSMEs.

During2007,AngloAmericanSAand itsbusinessunitsprocuredR17,3billionoftransactionsforconsumables,servicesandcapitalwithblack-ownedandmanagedsmallandmediumbusinesses.

Anglo Khula Mining Fund ThejuniorminingelementofAngloZimeleismanagedbytheAngloKhulaMiningFund.ThisisajointinitiativebetweenAngloAmerican

and Khula Enterprise Finance Limited, launched in 2003with aninitial amount of R40million. The latter is a government-ownedentitythatpromotesSMEdevelopment.

The Fund assists emerging, black-owned mining companies withequity and loan finance as well as technical support during thehigh-riskexplorationandpre-feasibilityphasesofminingprojects,bringing them to a commercially bankable position. Without theFund,manyblack-ownedjuniorminingcompanieswouldnotbeabletooperateintheminingsector.TheFundprovidessimilarsupportservices to thoseofferedby theSupplyChainFundand reliesonAngloZimeletoraisefinancefromcommercialfinanciersforminedevelopment.

The Fund’s equity stake in investee companies does not exceed49%andittargetsinvestmentsthatcanbeco-fundedwithAngloAmericanoroneofitssubsidiaries.

ANGLO ZIMELE – PROMOTING INDEPENDENCE THROUGH ENTERPRISE DEVELOPMENT

At a glance• AngloZimelesupportedatotalof66businesseswhichprovidedjobsfor4,403peoplethroughtheSupplyChainFund,AngloKhulaMiningFundandSmallBusinessStart-upFund

• AngloZimelecreatedtheSmallBusinessStart-upFundwhichcommencedtheroll-outofthe12hubsclosetoAngloAmerican’svariousmines.

OverviewAnglo American’s small and medium enterprise (SMEs) development and empowerment initiative, known as Anglo Zimele, was established in 1989 to empower black entrepreneurs through the creation and transformation of SMEs.

A catalyst for emerging black business in South Africa, the Anglo Zimele initiative is divided into three separate funds – the Supply Chain Fund, the Anglo Khula Mining Fund and the recently established Small Business Start-up Fund. The funds operate on a commercial basis, albeit with the social purpose of creating sustainable and economically viable enterprises by providing equity/loans, mentoring and access to value-enhancing opportunities.

Anglo Zimele management services provides hands-on support to all three funds and delivers strategic input in areas such as corporate governance, management, legal, accounting, company secretarial, public relations, safety, health and the environment.

Nick van Rensburg, managing director of Anglo Zimele, Godfrey Gomwe, chairman of Anglo Zimele, and Harry Calver, chairman of Anglo Khula Mining Fund, at the Enterprise Development Awards in November 2007


Small Business Start-up Fund LaunchedinOctober2007,theSmallBusinessStart-upFundisanenterprisedevelopmentinitiativewhich,bymeansofloanfinance,supportsentrepreneursandsmallbusinessesinthecommunitiesinwhichAngloAmericanoperates.

Unlike the Supply Chain Fund, the Small Business Start-up Fundonlyprovides loan funding (limited toR1millionperproject)andmentoring.ThebeneficiarySMEsmustoperate inAngloAmericanbusinessunitareasandmustcomplywith theBEEcriteriaaspertheMiningCharter.However,theyneednotbepartoftheAnglo

Americansupplychain.TheSmallBusinessStart-upFundiscurrently100%fundedbytheAngloZimeleSupplyChainFund.

To support this initiative, 12 Small Business Hubs are being setup in close proximity to Anglo American mining operations. Thehubs provide local entrepreneurs with tangible support, includingassistance with business plans, training and coaching on theessentials of running a business, as well as tax advice andmentorship.

The Small Business Hub network at Anglo American’s miningoperationsisreflectedbelow.



VaalSecundaMiddelburgWitbank

AngloCoal

AngloPlatinum

Kumba IronOre

Thabazimbito share with

Anglo Platinum

Kathu(Sishen)

Northern CapeWestern Limb Eastern Limb

MokopaneRustenburg

Mogwase Atok

Burgersfort

Polokwane

Small BusinessStart-up Fund


ANGLO ZIMELE – PROMOTING INDEPENDENCE THROUGH ENTERPRISE

RecognitionAngloZimele achieved a double accolade at the2007EnterpriseDevelopmentAwards,beinghonouredastheBestInternalCorporateEnterprise Development Programme and the Most OutstandingOverallEnterpriseDevelopmentProgramme.

Inaddition,AngloZimelewasshort-listedforthesecondconsecutiveyearfortheBestInitiativeinSupportofSMEDevelopmentcategoryintheAfricaInvestorAwards.

Further,AngloZimele’smodel has been recognised by theWorldBank and United Nations Development Programme as a leadingexampleofbestpractice.

Moshawa Modise of Maccauvlei Learning Academy (left) and Thomas Mahlangu of eMalahleni Oil Collections at the Anglo Zimele SME showcase hosted in August 2007

SmallBusinessStart-upFund AngloKhulaMiningFund SupplyChainFund

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40

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20

10

02005 2006 2007

Businesses supported

5,000

4,000

3,000

2,000

1,000

02005 2006 2007

Jobs created

100

80

60

40

20

02005 2006 2007

Total funding valueMillions

1,200

1,000

800

600

400

200

02005 2006 2007

TurnoverMillions

Anglo Zimele Summary by Fund


Anglo Zimele’s overall value offering includes:

• Developmentofbusinessplans• AssistancewiththeselectionofaBEEpartner• Provisionoffinancefortheacquisitionofassetsandworkingcapital• Assistancewithcompanyformationandongoingcompanysecretarialandadministrativeservices

• AssistancewiththeintegrationofaBEEpartnerintothebusinessandthedevelopmentofatraininganddevelopmentplanforthetransferofskillsandongoingmentoring

• AssistancewithmarketingthebusinesstoAngloAmerican’sbusinessunits,specificallyforsupplylinks,marketdevelopmentandexpansion

• LeveragingfromAngloZimele’sbrandingtoobtainadditionalfundingwherenecessary• Provisionofongoingstrategic,operational,financialandbusinesssupportthroughBoardrepresentation

• Guidanceoncorporategovernance,ethics,safety,healthandenvironmentstandardsandHIV/AIDS.ThismayinvolveAngloAmericanpersonnelintechnicalorspecialistdisciplines

• CollationandconsolidationofthequarterlyBEEprocurementfiguresforeachdivisionandoperationofAngloAmericanSouthAfrica.


ANGLO ZIMELE – PROMOTING INDEPENDENCE THROUGH ENTERPRISE

Isaac Mashiya and Buessy Gededger of Ikhwezi Fleet Services proudly show off their new fleet of vehicles

Anglo American has led South Africa’s major mining empowerment deals and withour significant investment in black economic empowerment, we open doors for people.


Safety

ANGLO ZIMELE – PROMOTING RETHINKING OUR SAFETY APPROACH

At a glance• Launchofnewinitiativestodriveconsistentsafetymessagesandpractices• Mineshaftsshutdowninordertoretrainaffectedemployeesandtoconductathoroughinvestigationofoperatingconditions• Significantprogressinoursafetystatisticsmadebetweenthefirstandsecondhalvesoftheyear.

OverviewThere were 40 fatalities in Anglo American’s global operations during 2007 (2006: 44), 32 of these in South Africa. As the majority of the Group’s employees and contractors are located in South Africa, two safety summits, attended by 120 of the Group’s senior management, took place during the year.

A Group safety initiative was launched mid-year, focusing on the role of leadership and the need for a sound, comprehensive risk management strategy to achieve Zero Harm. The Anglo Safety Way, a framework of management standards and systems which incorporates the results of our own safety peer reviews, was subsequently established. The aim is to radically improve workplace safety by ensuring that all our people make the right decisions affecting their own safety, and that of others, all the time.

Safety, Occupational Health andEnvironmental Management in Anglo American

Our vision is to minimise harm to theenvironment by designing, operating andclosing all of our operations in anenvironmentally responsible manner.

We hold our leaders accountable for the environmentalmanagement of our activities.

We expect our line managers and supervisors to provideeffective leadership in environmental management whilstrecognising that environmental management is theresponsibility of all who work for us.

Managers of every business or operation are responsiblefor the full implementation of the Anglo EnvironmentalManagement Framework and participation in the Anglo PeerReview Programme.

This requires:

5 the allocation of appropriate resources and the provision oftraining, education, consultation and auditing to ensurecompliance;

5 the development, implementation and maintenance ofenvironmental policies, programmes and procedures;

5 effective environmental impact identification, assessmentand control, designed to achieve proactive management ofour activities, products and services.

We shall conserve and protect environmental resourcesthrough, amongst others, the efficient use of energy andwater, minimising waste and reducing pollution.

We shall demonstrate active stewardship of land, freshwatersystems and biodiversity with which we interact.

We respect people’s culture and heritage

We shall comply with environmental legislation and otherrequirements to which we subscribe, and develop a culture ofimprovement.

We commit to open communication with our employees, localcommunities, contractors, suppliers, investors, businesspartners and other interested parties to encourage anenvironmentally responsible culture that reflects intent ofthis policy.

We shall apply the mitigation hierarchy ofavoiding, minimising and mitigatingenvironmental impacts arising from ouractivities, products and services

All necessary steps will be taken to learn fromenvironmental impacts, incidents, auditfindings and other non-conformances,to prevent their recurrence

Common, non-negotiable EnvironmentalManagement and Performance Standards andprocedures shall be applied throughout theGroup as a minimum requirement

THESE POLICIES WILL BE REVIEWEDAT APPROPRIATE INTERVALS ANDREVISED WHERE NECESSARY TOKEEP THEM CURRENT.

December 2007

Our vision is to achieve Zero Harm anda healthy and productive workforcethrough the effective management ofoccupational health risks in all ourmanaged operations.

We believe our people are our key assetand we do not accept that it is necessaryfor people to be made ill whilst workingfor us. All employees should be able toreturn home fit and well at the end ofeach shift.

Line management is responsible and will be held accountablefor the implementation of this policy and we expect allemployees and contractors to contribute to maintaining aworking environment that is without significant risk to health.

We commit to the reduction of exposure at source throughgood engineering practice and application of the ALARP1principle; compliance with the law will always be theminimum standard.

We will provide appropriate resources, systems and trainingto protect, maintain and promote the health and workingcapacity of our people.

We commit to open and transparent communication onoccupational health with all stakeholders.

We will set appropriate objectives and monitor progressagainst these to ensure continual improvement towardsour goal.

1 As Low As Reasonably Practicable

All occupational illnesses are preventable

Learn from our monitoring of exposure andsurveillance of disease incidence and use thisinformation to prevent the occurrence ofoccupational disease

Health standards and rules are consistentlyapplied throughout the Group

Our vision is to achieve Zero Harmthrough effective management of safetyin all our managed operations.

We believe our people are our key assetand we do not accept that it is necessaryfor people to be injured whilst workingfor us. All employees should be able toreturn home fit and well at the end ofeach shift.

We believe that one injury is onetoo many.

OUR VISION OUR VISION OUR VISION OUR VISION OUR VISION OUR VISIO

OUR PRINCIPLES OUR PRINCIPLES OUR PRINCIPLES OUR PRINCIPLES OUR PR

All injuries and occupational illnesses arepreventable

All necessary steps are taken to learn fromincidents in order to prevent recurrence

Safety standards and rules are consistentlyapplied throughout the Group

Cynthia CarrollCEO, Anglo American plc

OUR POLICY OUR POLICY OUR POLICY OUR POLICY OUR POLICY OUR POLIC

SAFETY OCCUPATIONALHEALTH

ENVIRONMENTALMANAGEMENT

We hold leaders accountable for the safety of our people.

We expect our managers and supervisors to provide effectiveleadership in safety whilst recognising that good safetybehaviour is the responsibility of all those who work for us.

Management of every business or operation is responsiblefor the full implementation of our safety management system(the Anglo Safety Way), the Fatal Risk Standards and theGolden Rules. This requires the allocation of appropriateresources and the provision of training, education,consultation and auditing to ensure compliance.

We commit to open communication with our employees,contractors, suppliers and other business partners andinterested third parties to encourage a safety culture thatreflects the intent of this policy.

We will set appropriate objectives and monitor progressagainst these to ensure continual improvement towardsour goal.

14290 SHE MultiPoster.qxd:Layout 1 13/3/08 11:03 Page 1

Anglo’s safety policy signed by Cynthia Carroll in December 2007


Fitness for workAngloCoalSouthAfricalaunchedanewoccupationalhealthcentre in 2007, as part of its drive for zero harm in theworkplace.Thecentreconductsmandatoryhealthchecksonallemployeesandcontractorstoensuretheyarefitenoughtowork safely and tomonitor the effects of exposure tohealthhazardsintheworkplace.

The centre uses the best available technology, includingstate-of-the-art digital X-ray facilities that do not requiretheenvironmentallydamagingchemicalstraditionallyused.Anglo Coal South Africa has installed similar facilities inclinicsatitscollieriestoensurefastandeffectivediagnosisofanyhealthproblems.

AsimilarfacilityisalreadyinplaceatAngloPlatinum,wherethere is also a functional work-capacity assessment andrehabilitationunit.

LTIFR

LTIFR

2000 2001 2002 2003 2004 2005 2006 2007

FIFR

FIFR

2.50

2.00

1.50

1.00

0.50

0.00

0.10

0.08

0.06

0.04

0.02

0.00

Lost-time injury and fatal injury frequency rates

ANGLO ZIMELE – PROMOTING RETHINKING OUR SAFETY APPROACH

Improving safety at Anglo PlatinumFollowingasignificantdeteriorationinsafetyperformanceatAngloPlatinum, with 12 fatal incidents in the first half of the year,productionwassuspendedatalltheRustenburgmine’sshaftsonastaggeredbasis.Afteraseriesofmanagementvisitstoeachoftheshafts,massmeetingswith28,000employeesfromspecificshaftswereheldattheRustenburgBleskopstadium.Industrialtheatrewasusedtocommunicatethesafetymessagesinfourlocallanguagesto ensure everyone understood the importance of safety in ouroperations.Fatalitiesarenotmerelystatistics;everydeath is thelossofahumanlife,causingsufferingtotheirfamilyandfriends.

Team supervisors also discussed safety issues with executivemanagement. Concerns raised included material, staff shortages,communicationandissuesofmutualrespect.OncetheRustenburgcampaignwascompleted,theexecutiveteamtouredall theotherAnglo Platinumoperationswith the samemessages. Significantlyimprovedsafetyperformancewasexperienced in thesecondhalfof the year,with the lost-time injury frequency rate atmanagedoperationsreducedto1.71comparedto2.37recordedinthefirsthalf of the year. Thiswas the best ever safety performance forAngloPlatinum.

Towards Zero HarmRecognising that there is still a lot of safety-related work to bedone,Anglowillpartnerwithuniversitiesaroundtheworldtocreatea network of resources and education and training programmesthat can be presented to Anglo employees, regulators and othercompanies.Fourdifferentlevelsoftrainingwillbeoffered,focusingongloballyappropriateterminologyandmodels.

A meeting with employees in Rustenburg to communicate the safety message.


Our people

ANGLO ZIMELE – PROMOTING MAKING PEOPLE A PRIORITY

At a glance• AngloCoalrankedfourthinthe“largecompanies”categoryinDeloitte’s2007‘BestCompanytoWorkFor’survey• Newe-recruitmentsystemlaunched• Committedtofairlabourpractices.

OverviewAnglo American aims to create an environment in which employees can give their best, be treated fairly, be empowered to develop rewarding careers and be provided with the opportunities to make a difference. This was highlighted by Anglo Coal being ranked fourth in the large companies’ category in Deloitte’s prestigious 2007 ‘Best Company to Work For’ survey.

A commitment to fair labour practicesThe core principles of our human-capital strategy includecommitmentstoeliminatingdiscrimination,promotingequalityandemployingthebestpersonfortherole.Employeescanexpecttobetreatedfairly,withdignityandrespectandcanalsoexpecttoworkinanenvironmentfreeofintimidationandharassment.TheGroupiscommittedtofairlabourpracticesandfreedomofassociation.

Thereisasenseofintegrityandinclusionaboutourprocesses.Weengageconstructivelywithemployeesateverylevelregardingawidevarietyofissues.Tociteoneexample,labourunionrepresentativesspokeabout theirconcernsata regional forum inSouthAfrica in2007,whichwasheldtodiscusssocialandcommunityissuesandwasattendedby200seniormanagers.

Reward and retentionRewardandretentioninitiativescontinuetobeamajorfocusacrosstheGroup,as in the linkingof the top levelsof rewardwith thehigheststandardsofperformance.Duringtheyear,supplementarymeasureswere introducedwithin targetedareas,whichhelped tocontainvoluntarylabourturnoverdespitetheresourceconstrainedmarketandreducestaffturnover.

‘One Anglo’Increasedsharingofideasandresourcesinkeepingwiththestrategyofcreatingamoreintegrated‘OneAnglo’organisationhasresultedinanincreaseinefficienciesandeffectivenessintheGroup’stalentinitiatives globally. In 2007, the Group launched a new onlinerecruitmentsystemthatenablescurrentandprospectiveemployeesaroundtheworldtoviewthefullrangeofjobopportunitiesavailableatAngloAmerican.Thesystemwillnotonlyaidretention,asitisnoweasiertoapplyfornewopportunitieswithintheGroup,butwillalsofacilitateregionalandexternalgraduaterecruitment.

In keeping with our unified strategy, from 2008 our previouslydiversefoundationManagementDevelopmentProgrammeswillhaveacommoncurriculumandstandardofdeliveryacrosstheglobe.

An Exco meeting at Greenside Colliery includes a mix of both men and women in leadership roles


ACQUIRING AND DEVELOPING RELEVANT SKILLS

At a glance• 200studentsundergopracticaltraining• AngloPlatinumlaunchedamulti-millionminetrainingcentre• AngloCoalCadetSchemeanongoingsuccess

• Employeesreceivedadultbasiceducationandtraining(ABET)• AngloPlatinumlaunchedShiftLeaderDevelopmentProgramme.

OverviewThe skills of our people are a cornerstone of our success. Our focus is on developing the competence needed to succeed in a rapidly changing world within the context of a supportive environment. This is particularly necessary given the fierce competition, both globally and locally, for technical and managerial skills.

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

BursariesApprentices

GraduatetraineesOthertrainees–Othertrainees’dropinnumbersisduetocompletionofcommunityartisantraininginBrazil

2003 2004 2005 2006 2007*

Education and Training 2007

Anglo Platinum employees at a skills training centre at Amandelbult

Training spend Globally, direct investment in training amounted to R2,3 billion,2.79%oftotalpayrollcosts.Theaveragenumberofformaltrainingdaysperemployeefor2007was0.38days.

Work experienceAnglo’s South African businesses are working closely with thegovernment to provide students from technical universities withskillstohelpthemfindwork.In2007,200studentswereinvitedtoAngloAmericanSouthAfricaforpracticaltraining,withanother200settoattendin2008.


Our people (continued)

BursariesIn 2007, the Kumba Iron Ore business gave bursaries totallingR7 million to 48 students, and accepted 20 graduates for itstrainingprogramme.KumbaalsodonatedR2million toenable10disadvantaged young learners to attend a year of pre-universityschooling. In 2008, Kumba plans to provide 81 students withbursaries totallingaboutR18million, andwill expand its trainingprogrammetosupport52graduates.

Anglo Coal Cadet SchemeAngloCoalSouthAfricaistrainingitsmosttalentedemployeestoensure that therearesufficient leaders tosupport thecompany’sexpansionoverthenextfiveyears.TheAngloCoalCadetSchemebegins with a ten-week programme that provides participants(or cadets)with leadership skills. Thereafter, cadets receive fourmonths’ workplace training, followed by a six-month trial periodin which they are given supervisory responsibilities. Anglo Coalmonitorsthecadets’progressandrewardsthebestperformerswitha permanent supervisory role in the company. During 2007, 63employeescompletedthefirststage,39(62%)ofwhomwerefromhistoricallydisadvantagedcommunities.

Throughthisscheme,AngloCoaliswellplacedtomeetitsfuturemanagementneeds, bothby training existing staff andattractingnewemployeesand is currently considering the introductionof asimilarprogrammetoattractandtrainuniversitygraduates.

Literacy trainingAnglo Platinum has committed R179 million to help its illiterateemployees learn to read and write. During 2007, 3,434 Anglo

Platinum employees received adult basic education and training(ABET)at18venues,acrossthecountry.

AngloCoalhasofferedABETtoemployeessince1990andbelievesthatby2017allstaffmemberswillbefunctionallyliterate.

Similarprogrammesareofferedinallbusinessunits.

AttheJohannesburgCorporateOffice,19employeeswhohavehadtrainingandclasseshavenowmovedbeyondnumeracyandliteracytoincludenaturalsciencesandeconomicandmanagementscience.In2008,thefocuswillbeontechnology.

Developing shift leadersInFebruary2007,AngloPlatinumbeganaShiftLeaderDevelopmentProgrammeforitsProcessDivision.Shiftleaderswillimprovetheirtechnicalskillsthroughknowledge-basedtraining,andreceivework-basedlearningtoincreasetheirpracticalabilities.

Upgrading skillsInmid-2007,workbeganonAngloPlatinum’snewR285millionmine training centre in Limpopo Province. This will providetheoretical and practical training for surface and undergroundoperations.Around1,200newemployeeswillbetrainedannuallyand the centre will create 200 jobs – 100 permanent positionsand100temporaryconstructionpositions.AngloPlatinumisalsoextending and upgrading its existing engineering skills trainingcentre,atacostofR27million.


A group of students at Damelin eMalahleni


SincethedivestmentofourMondiPaperandPackaginginterests,thepercentageofwomenmanagershasincreasedto18%(2006:14%).TheoverallpercentageofwomenintheGrouphasremainedat11%(2006:11%).Initiativeslike‘WomeninMining’areseekingtochangethis.

Within South Africa, Anglo American has seen a consolidationin the representation of HDSAs in its management ranks in thisreporting period, with streamlined and more focused miningbusiness reflecting an increased percentage (42%) of historicallydisadvantaged South Africans (HDSAs) in management(2006:39%).

TherehasalsobeengrowthintherepresentationofwomeninseniormanagementrolesinSouthAfrica.Thefigureattheendof2007was18%,up from14%thepreviousyear.Theseupward trendsareexpectedtocontinuein2008,withfurthergrowthintheoverallHDSA complement and women representation in managementroles.

In2007,AngloPlatinumfast-trackedHDSAsforcareersinmining,with354employeesbenefitingin2007(212in2006).Inaddition,a programme designed to train people for senior managementpostsattracted48people,while4,408weretrainedinsupervisoryskills.

Pinky Segolela, a technician at Anglo Research, working on the ArNi Process test plant

BUILDING A DIVERSE BUILDING A DIVERSE WORKPLACE

At a glance• 42%HDSAsinmanagement–upfrom39%in2006• Anincreaseinwomeninmanagementroles–from14%in2006to18%in2007• 354HDSAsfast-trackedforminingcareersinAngloPlatinum.

Women in Mining There are three inter-related strategic thrusts for increasingtherepresentationofwomen inAngloAmericanSouthAfrica’sbusinessunits.Thefirstinvolvesappointingchangeagentsandrolemodels insenior leadershippositions.Thesecondinvolvesaccelerating the appointment of women at all levels in theworkplace. Underpinning these strategies is the establishmentof an enabling environment in which women are treated withrespect and consideration. This is achieved through policiesincluding maternity leave, crèche and breastfeeding facilitieswithinaframeworkofzerotoleranceforsexualharassment.AllAngloAmerican’s businesses are geared towards this enablingenvironment.


Designated Group (DG) in Management Levels 7,697Female Number % of TotalAfrican 367 4.8%Asian 58 0.8%Coloured 25 0.3%White 828 11%Disabled 2 0.0%

1,280 17%MaleAfrican 1,866 24.2%Asian 136 1.8%Coloured 223 2.9%Disabled 23 0.3%

2,248 29%

Total DG in Mgt Levels 3,528 45.8%White males 4,194 54.5%Total no in Mgt Levels 7,697

Total DG in Mgt Levels without white women 2,700 35.08%

Women in Mining

20%

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

WomenWomenManagers

2002 2003 2004 2005 2006 2007


Our people (continued)

Women in mining Anglo America South Africa

Anglo American’s continued investment in many community development projects,contributes to a better future for South Africa. We open doors for people.


Sustainable development

The eMalahleni Water Supply Agreement was signed between the eMalahleni Municipality, BHP Billiton and Anglo Coal - May 2007

Environment – mitigating our impactTheimpactofhumankindontheenvironmenthasbeenprofound.Daily,infrastructure,technologyandtheproductsproducedaroundthe globe significantly affect our environment. Examples of oureffortstomitigateourimpactaresetoutbelow.

Recovering valuable materialsAnglo Platinum is introducing new fine grinding technology toimproverecoveryefficiencyandsimultaneouslyachievesignificantdirectandindirectenergy-efficiencybenefits.

Reducing and recycling waste ThereareinitiativesaroundtheGrouptoreducewastebeingsentto landfillsitesandtofindcommercialusesfor recycledmaterial,including:• AngloCoal’swastepaperrecyclingcampaignwhichresultedin36tonnesofpaperbeingrecycledin2007

• KumbaIronOrehasestablishedawaste-volumebaselineandwill beginmonitoringwaste volumes against set targets in2008

• ScawMetalshasdevelopedaprocesstorecyclethe17,000tonnesofunburnedcoalfromitsDirectlyReducedIron(DRI)plant each month. The coal is used as a reductant in thechemicalprocesstoproducedirectlyreducediron.Magnetsareusedtoremoveironparticlesandtheremainingwastecoalisusedtomanufacturebricksandcement,reducingtheamountofwastesenttolandfillsites.

FOCUSING ON THE FOCUSING ON THE TRIPLE BOTTOM LINE

OverviewIt is generally accepted in business today that successful businesses are those which balance economic, social and environmental factors – the triple bottom line of sustainable development. A growing body of research finds that embedding sustainability thinking and practice in an organisation can deliver significant long-term business value. Recognising that driving sustainable development is crucial for commercial success and underpins responsible corporate citizenship, in 2000 Anglo American made a firm commitment to sustainable development. The Group has since worked to ensure that policies and strategies address these factors through daily good business practices.

“Anglo American does not regard sustainable development as an ‘add-on’ or a ‘nice to have’ element of doing business. In fact, well before the term became fashionable, sustainable development became part-and-parcel of our business approach and today is ingrained in everything we do… ”Cynthia Carroll, Chief Executive Anglo American plcSpeech to the Global Reporting InitiativeAmsterdam, May 2008


Turning waste into profitAnglo Technical Division, working with Anglo Coal and AngloPlatinum,hasdevelopedinnovativeproductstotransformwasteintocommercialcommodities,therebyreducingboththeenvironmentalimpactandthefinancialcostofmanagingthewaste.

TheeMalahleniWaterTreatmentPlantatAngloCoalSouthAfricareclaims25millionlitresofwastewaterfromnearbyminesdaily.Thewateristreatedtopotablestandardandthensoldtothelocalmunicipality.About100tonnesofgypsumisproduceddailyduringthistreatmentprocess.Gypsumisagoodbuildingmaterialbecauseit is lightweight, sets rapidly and has acoustic and fire-retardantproperties.AngloCoalhasfundedaR7,1millionresearchprojecttodevelopusesforgypsuminthebuildingandminingindustry.

Similarly,researchisbeingconductedintocommercialusesforthe60,000tonnesofwasteslagproducedeverymonthattheAngloPlatinumPolokwanesmelter.Slagcanbeusedasasilicareplacementinsomeconstructionandminingmaterials.

Improving water managementSouthAfricaisawater-stressedcountry,soitmakesbusinesssensetofocusoureffortsonensuringwiseruseofwater.Anumberofinitiativesarecurrentlyunderwaytoimprovewatermanagement.AtKumbaIronOre’sSishenmine,theaverageannualevaporationis five times greater than the annual precipitation. Against thisbackdrop,theplantisbeingredesignedtoreducewateruseandcutlossesfromseepageandevaporationinprocessing.ThesewillbeevenmoreimportantasSishenexpands.Sishenisalsoenlargingthecapacityoffeedpipesfromthesewagetreatmentplanttoincreasetheuseofrecycledwaterandisharvestingstormwateroffroofsand fromsurface run-offs.Water-qualitymonitoring is alsobeingimproved.

Remediating sitesScawMetals is restoring the Rietfontein landfill site, an old clayquarry. Work includes extensive use of plants selected for theirtolerance to adverse conditions and ability to remove pollutantsfromland,wasteandwater.Vegetationhasgrownwellandwildlifeisstartingtoreturn.Forexample,therewerenumerousbullfrogsatthesitein2007comparedtoonlytwoin2006.Afurtheradvantageoftheprojecthasbeenthecreationofjobsforlocalpeoplesupplyingplantsfortheremediationwork.

Tackling the challenge of climate changeOur challenges include improving the standard of living of themajorityoftheworld’spopulationbyexpandingaccesstoenergy,

reducingglobalemissionsofgreenhousegasestocombatclimatechange,preparingforaworldwhereconventionalcrudeoilreservesbecome more restricted, and ensuring secure access to energy.Our aim is to make coal more sustainable by using clean coaltechnologiesandcapturingcarbonemissionsfromcoalcombustionsafely–toproducelowornear-zerocarbonenergyinquantitiesthatmeetmarketdemands.TheAngloAmericanGrouphascomealongwaysince2003,whenanewfocusonefficiency,energysecurity,thecostofenergyandthereductionofcarbonemissionswasestablishedwiththelaunchofaGroup-wideenergyefficiencyprogramme,whichincludes:

• The measurement of energy intensity at site level. Thesemeasurementsarethenusedtoholdsitemanagersresponsibleformeetingreductiontargets

• Thedevelopmentofprojects thatdirectly reduceourcarbonfootprint.Accordingly,wehaveusedtheCleanDevelopmentMechanism (CDM) to help provide the commercial incentivefortheseprojectsand,todate,havedevelopedsuccessfullythree CDM projects at Highveld andMondi, companies thatwenowno longerown.Nonetheless,wehave retained themanagement experience gained through the development oftheseprojectsandareusingthistoidentifyanddevelopnewCDMprojects


Senior executives at the Anglo Coal/BHP Billiton eMalahleni water supply project - 31 May 2007


Road improvements reduce fuel useTransport contributes to greenhouse gas emissions.Anglo Coal has reduced the fuel consumption of its haulageoperations by improving road conditions at its opencastcollieryinLandau,SouthAfrica.Theroadswereresurfacedusing an aggregate made predominantly of sandstone,a mining by-product that produces stable, high-qualityroad surfaces. The aggregateswere compacted to providesufficient strength to accommodate the toughest trafficloads.Haulagevehiclescannowtravel22%fastertoandfromthemine,leadingtoareductionindieselofmorethanR1,4millionor2,888,000litresperyear.

Sustainable development (continued)

• Buildingcarbonefficiencyintothedesignofnewprojects• Supporting the development of exciting new technologieswhichhavethepotentialtoproducepowerfromcoalwithzeroemissions. We are, for example, engaged in research withvarious partners on integrated Carbon Capture and Storage(CCS)projects.

TheGroupiscommittedtoreducingenergyuseby15%by2014,working from the 2004 baseline. The target is further to reducecarbon emissions by 10% per unit of production over the sameperiod.

socio-economic plan. The mine now provides assistance via asmall business development programme, community developmentinitiatives which include providing infrastructure in informalsettlementsandsponsoringofmobileclinics,aswellaseducationalinitiatives. The latter includes school refurbishments, teachertraining, scholarships and schemes to support 2,000 students inmaths,science,technologyandliteracy.

Engaging with suppliersDuring2007,AngloPlatinumpilotedanapproachtoengagewithitssupplierson issuesofsustainability.Thedeliverables includeda PlatinumSupplier Sustainability Requirements Policy; hand-outsforsuppliers;anopendaywithmajorplatinumsuppliersandon-sitemeetingswithafewselectedsupplierstodiscusstheimportanceofsustainabledevelopment.

Engaging with governmentThere has been intensive engagement around the South AfricanMineral and Petroleum Resources Royalties Bill in South Africa.Theroyaltyratesforironoreandthepotentialfordoubleroyaltiesbeingpayable–thatis,totraditionalownersandthegovernment–still requireresolution.However,there isnowamoreworkableproposalwhichwillresultinhigherpaymentswhenpricesarehighandreducedpaymentsatthebottomofthecycle.

Stakeholder engagementOurlong-termbusinesssuccessdependsnotonlyoncreatingvalueforourshareholders,butalsoonmaintainingoursocial licencetooperate.Wehaveestablishedstructuredprogrammesforengagingwithkeystakeholders.

SEATOurinternationallyrecognisedSocio-EconomicAssessmentToolbox(SEAT) continues to help us understand the perspectives andconcernsofthecommunitiesclosertoouroperations.AnenhancedversionofSEATwaspublishedin2007.SEATassessmentsexaminehowthecommunityhostinganoperation isaffectedbyourworkandwhatsocialandeconomicbenefitswecanoffertheminreturn.In2007,wemadeathree-yearlySEATassessmentmandatoryforallourmajoroperations.

In 2007, the Rustenburg Platinum mine and Isibonelo collierypublished SEAT reports. At the Rustenburg Platinum mine, theSEAT process was used to re-assess the mine’s wide-ranging


An employee being fitted with personal noise monitoring equipment


forums.Morethantwo-thirdsofAngloPlatinum’ssecurityprovidershavenowbeentrainedonthePrinciplesandthecompanydonatedR1 million to the South African Police Services to fund thedevelopmentofapolicingandhumanrightscourse.

Community development projects

VolunteeringEmployeesatthecorporateofficeinJohannesburgcontinuedworkingwiththeresidentsoftheNomzamoinformalsettlementinSoweto,supportingaregularsoupkitchen,providinginformationaboutHIVandAIDSandhelpingacommunity-basedcrèche.Ongoingsupportis provided toMotherTheresa’sMission in Johannesburgand theHarrietShezipaediatricAIDSclinicattheChrisHaniBaragwanathHospital. Professional staff also volunteered their time for asuccessfultwo-daycareer-guidanceevent.

Putting skills on the international mapGoedehoop’ssustainabledevelopmentinitiative,SkillsGalore,wasput on the international map when it shipped 200 kilograms ofbeautifullyhand-crafteditemstoLondon.TheseweresoldatAngloAmerican’s Londonheadoffice,which held an annual art auctioninaidofcharity.Ayearafter its inception in2003,SkillsGalorebecameacompletelysustainableorganisationandnolongerrequiresfunding from themine for its day-to-day running. It has createdmorethan30jobsandhasopenedupaworldofopportunity.

Resettlement with sensitivity• During2007,professionalarchaeologistssuccessfullymoved1,648gravesfromanareaadjacenttoAngloCoal’sNewVaalcolliery.Meticulousattentionwaspaidtoculturalcustomsandfamilypreferencesandtheprocesswaswellreceivedbythefamilies

• Consultations have been established with the Dingletoncommunity, near the Kumba Iron Ore Sishen mine in theNorthernCape,withaviewtotheirrelocationowingtotheirconcerns about noise and dust levels. Dingleton was builtto serve the mine in the 1950s and, while environmentalstandardsaremet,bymodernstandardsthetownistooclosetotheactivemineareas

• Byyear-enda totalof539 familieshad relocated fromGa-SekhaoleloandGa-PukavillagestothenewMotlhotlovillage,some10kilometresfromthePPRustNorthmineexpansioninLimpopoprovince.Afurther418familieswillmovein2008.Consultationbeganin2001andtheresettlementisintendedtoimproveboththephysicalenvironmentinwhichlocalpeoplelivebyprovidinghousesandsharedinfrastructureandalsotoaugmentandimprovetheireconomicopportunities.

Promoting human rightsDuring2007,AnglooperationscontinuedtopromotetheVoluntaryPrinciplesonSecurityandHumanRightsinternallyandinexternal

A family taking occupation of their new home during the Motlhotlo Relocations


Employee housing developmentsMany of our operations are finding that housing supply has not kept up with demand in the areas of our mines. In South Africa, Anglo Platinum is working with stakeholders and the Rustenburg municipality to develop sufficient housing. The business has launched a home-ownership scheme to assist employees at the lower end of the income scale who have traditionally struggled to access housing finance from financial institutions. The scheme encourages employees who are renting accommodation to switch to home ownership. This will assist many employees in upgrading from informal housing to properly constructed homes.

In Thabazimbi, Kumba Iron Ore is improving workers’ living conditions by converting a hostel originally bought in the 1940s into one, two and three-bedroomed units which employees can purchase at subsidised prices.


Sustainable development (continued)

Local women are trained in basic sewing skills at the Goedehoop community centre

From crèche to skills developmentKumbaIronOresponsorstwoprojectsthatimprovetheprospectsofchildrenlivingnearitsSishenmine.AnEarlyChildhoodDevelopmentCentre will prepare 150 children from disadvantaged homes forformaleducation,andhelpthemdevelop languageskills.Childrenwillhaveaccesstoeducationaltherapists,aswellasapsychiatristand an occupational therapist who volunteer at the centre whennecessary.

HighschoolchildrenintheNorthernCapewillhavethechancetoset up their own small business through Kumba’sNewHorizonsEntrepreneurialProgramme.Studentsfrom128highschoolshavebeeninvitedtodevelopbusinessproposals.The120bestproposalswillgetstart-upfundingofR5,000andreceivetraining,mentoringandguidancefromlocalbusinesspeople.

Kumba Iron Ore’s Thabazimbi mine donated equipment worthR800,000 to a skills development centre that provides freetraining in business, carpentry, computer literacy, plumbing andwelding.Seventy-eightpercentofthosetrainedhavefoundwork.Inmid-2007,thecentrebeganofferingtrainingtoThabazimbimineemployees.

ScawMetalshasasimilarproject forhelpingyoung,unemployedmembers of their community to obtain basic qualifications andimprovetheircareerprospects.Scaw’strainingcentreinGermistonteachescomputerskills,theuseofsoftwarepackagesandwelding.ScawMetalshassincehiredseveraloftheformerstudents.

Promoting literacyScawMetalsisfundingaliteracyprojectattwohighschoolsthatarepredominantlyattendedbythechildrenofScawemployees.Theprojecttrainsschoolstaffinmanagementandteachingmethods,andprovidesnewmaterialstohelpthechildrenlearnEnglishlanguageskills,asthisisoftentheirsecondlanguage.

Helping local vendorsScawMetalsbuiltamarketareaforlocalvendorstoselltothe3,000employeesatitsUnionJunctionworks.Facilitiesincludehotandcoldrunningwatersothatfoodvendorscanpreparemealshygienically.Scaw’sinvestmentinthenewmarkethelpslocaltraders,manyofwhomarewomen,toearnaliving.

Helping abused childrenAScaw-sponsoredinitiative,knownasBEECourtwise,helpsbringchild-abuse offenders to justice by providing preparatory and in-court support to childrenwho testify in court cases against theirabusers.BEECourtwisehassetupchild-friendlywitnesspreparationrooms in courtwhich allow them to testify in amore supportiveenvironment. The initiative also provides trauma counselling toadultsandchildren.



Anglo American Chairman’s Fund

TRANSFORMING LIVES TRANSFORMING LIVES

At a glance• TheFundwasvotedbyNGOsasSouthAfrica’sbestgrantmakerfortheseventhconsecutiveyearintheannualTrialogue CSI

Handbooksurvey• TheChairman’sFundLimpopoRuralSchoolsProgrammewontheInvesting in EducationcategoryoftheMail & Guardian’s Investing

in the Futureawards• TheChairman’sFundsupported290projectsin2007,withatotalspendofR70million• MajorityofCSIspend–46%–focusedoneducation.

OverviewThe Anglo American Chairman’s Fund is a dedicated instrument through which the Anglo American Group companies channels its social investment spend in South Africa. The broad mandate of the Fund is to support development initiatives aimed at transforming the lives of South Africa’s disadvantaged communities. The Fund is committed to creating an environment in which ordinary people are given a ‘hand-up’ rather than a ‘hand-out’, thereby helping them to take control of their lives.

Formally established in 1974, the Chairman’s Fundwas the firstprofessionallymanagedcorporatesocial investmentfundinSouthAfrica. The Fund’s projects range from small-scale, grassrootsinitiativestomajorcapitalbuildingprojectsandlarge-scaleservice-deliveryprogrammes.WhiletheFund’sunderlyingphilosophyistobe an all-inclusive fund, a pragmatic decision has been taken tofocusaportionofthefundsavailableonstrategicandgeographicareas of significance to Anglo and its major businesses, AngloPlatinumandAngloCoal.

The Fund’s most distinguishing feature is added value derivedfrom experience and expertise accumulated over many yearsthrough countless engagementswith community-based initiatives–fromguiding,advisingandprovidingnetworkingopportunitiesfororganisations,totheformationofmajorpublic-privatepartnershipinitiatives.In2007,ourcorporatesocialresponsibilityprogrammescontinuedto receive accolades. The Anglo American Chairman’s Fund wasvotedbyNGOsasSouthAfrica’sbestgrantmakerfortheseventhconsecutiveyearintheTrialogueCSI Handbooksurvey.Inaddition,the Chairman’s Fund Limpopo Rural Schools Programmewon theInvesting in EducationcategoryoftheMail & Guardian’s Investing in the Future awards.

EducationremainsthelargestareaofinvolvementfortheChairman’sFund,with46%ofspendallocatedtothissectorin2007.Thisisfollowed byHIV/AIDS at19%,Welfare and development (18%),Health (5%), Arts and culture (5%), Entrepreneur development(4%),Environmentpolicy(2%)andPolicyandadvocacy(1%).

A care giver plays with children at the Johannesburg Child Welfare Society which is supported by the Anglo American Chairman’s Fund


During2007,theFundpartneredwith290separateprojectsoverandaboveitsongoingcommitmenttocapitalprojects.

EducationTheFund is committed to improving thequalityofandaccess toeducationforallSouthAfricans.Initiativesintheeducationsectorinclude:

• Provision of infrastructure and equipment for educationalinstitutions

• Mathematics and science projects to improve the quality ofteachingatschools

• Organisations catering for learners with special educationneeds

• Tertiary academic interventions that target students frompreviously disadvantaged backgrounds and focus on thepromotionofinternationaleducation

• Capacity-building programmes which focus on promotingimproved teaching and learning, school management andgovernance.

The Fund supports programmes in both formal and informaleducation settings, but is mindful of national and provincialeducationdepartments’priorities.Against thisbackdrop, theFundhas longstanding agreements and partnerships with educationdepartmentsregardingthedeliveryofteachingandlearning,aswellastheprovisionofbuildingsandotherinfrastructure.

HIV/AIDS TheAngloAmericanChairman’sFundhasestablishedpartnershipswith organisations that pioneer innovativemodels of support forpeoplelivingwithAIDSandcarefororphans.Thesemodels,whichfocusonbuildingonexistingcapacitywithincommunities,include:

• Home-basedcareprogrammes• Trainingofcommunitycareworkers• Palliativecaretrainingfornurses(healthcareprofessionals)• Counselling(VCT)andtreatment(ART)initiatives• Income-generatingprojectsforpeoplelivingwithHIV/AIDS• ProjectssupportingandcaringforAIDSorphans.

Sectoral giving by value

HIV/AIDS19%

Environment2%

Policy andadvocacy

1%

Education46%

Entrepreneurdevelopment

4%

Arts andculture

5%

Health5%

Welfare anddevelopment

18%

Provincial giving by value

Northern Cape1%

Eastern Cape7%

Mpumalanga9%

Western Cape11%

National11%

KwaZulu-Natal12%

Limpopo17%

Gauteng28%

Outside SA0%

Free State0%

Anglo American Chairman’s Fund (continued)


Rural Schools ProgrammeTheLimpopoRuralSchoolsProgrammewasinitiatedbythegovernmentandAngloAmericanin2003,tobuildclassroomsandablutionfacilitiesfordeservingschoolsinSekhukhune(AngloPlatinumarea)showingsignsofinstitutionalstrengthand commitment to success. The programme is unique inthatithasbeenrunasapublic-privatepartnershipbetweenAnglo and the Limpopo Department of Education, therebymaximising thevalue in theapplicationof fundsand jointresourcestoenhancethecapacityofrecipientschools.

To date, the partnership has invested R30 million in theprovisionofcomprehensivefacilitiesto16schools.Thesefacilities included administrative structures, computercentres,librariesandsciencelaboratories.

CASE STUDY


The Epoch and Optima Trusts: promoting maths and science in schoolsMathematics (maths) and science results in South Africa’sschools are notoriously poor. As a result, in 2007, AngloAmerican separate to the Chairman’s Fund announced thelaunchoftheEpochandOptimaTrusts,aimedat improvingthequalityandresultsofmathsandscience.OperatingunderindependentboardsoftrusteesandadministeredbyTshikululuSocialInvestments,theEpoch,EpochTwoandOptimaTrustshave three key areas of focus: state schools, independentschools and research. Since August 2007, more than R33millionhasbeenspentbytheTrusts,thebulkofitdirectlygrantedtostateschools(morethanR19million).

TheaimofthePublicSchoolsMathsChallengeistoincreaseparticipationinmaths,improvethequalityofmathspassesandincreaseaccess fordisadvantaged learners.Theprogrammeintendstocomplementandnotreplacegovernment’seffortsinthisarea.Nationally,46stateschools,whichhaveastrongtrackrecordofproducingmatriculantswithhigh-levelmathspasses, were selected to participate in the Public SchoolsMathsChallenge.Grantswereawardedtotheschoolsbasedondetailedbudgetedspendingplanssubmittedforspendingonteachers’salariesandmaterialsresources,suchastextbooks,calculatorsandcomputers.

A similar intervention is under way with independentschools,althoughthegrantsoftenrequireamatchedfundingcommitment from the independent schools and the schoolsaremeasuredontheirowntargets.

WelfareInitiativesinthewelfaresectorinclude:

• Organisationsandprojectsprovidingcarefortheelderly,thedisabled,andchildren

• Initiativesaimedatimprovingthequalityoflifeofthepovertystrickenanddestitute

• Institutions providing care, skills training and re-integrationintosocietyofvulnerablechildrenandyouthatrisk.

Health Initiativesinthehealthsectorinclude:

• Primaryhealthcareprogrammes• Trainingofcommunitycareworkers• Healthcareawareness,training,supportandprojects• Organisationscateringforthesocialandeconomicintegration,training,supportandcarefordisabledpeople.

Entrepreneurial development Initiativesintheentrepreneurialdevelopmentsectorinclude:

• Programmesintheformal,informalandruralsectors• Traininginitiatives• Skillstraining.

Arts and culture Initiativesintheartsandculturesectorinclude:

• Openinguptheartsandperformingartstocommunities• Nurturing home-grown talent and providing tuition at aninternationallevel

• Highlighting,recordingandpreservingtheculturaldiversityofSouthAfrica,nationaltreasuresandheritageofthecountry

• Use of the arts as media for training and awarenessprogrammes in other needy sectors, mainly communityhealth.

Environment Nationalandinternationalenvironmentalinitiativesinclude:

• Educationandtraining• Projectswithstrongdevelopmentalcomponents• Conservationandeco-tourism.

Policy and advocacy Initiativesinthissectorinclude:

• Think-tanks involved in research intoabroadsetof issues,fromeducationtohumanrights

• Organisationsthatlobbyforsocialreform• Initiativesthatimpactontheformationofgovernmentpolicy.


Anglo American improves the lives of many South Africans. With huge investment inhealthcare, we open doors for people.


OVERCOMING THE CHALLENGE OF HIV/AIDS

At a glance• Justover70%ofthe77,000employeesthroughoutsouthernAfricaunderwentvoluntarycounsellingandtesting(VCT)forHIVin2007

• Approximately19%ofourworkforceinSouthAfricaisHIV-positive• 3,600employeeswerereceivinganti-retroviraltreatment(ART)attheendof2007• 69%ofHIV-positiveemployeesareenrolledinHIVdiseasemanagementprogrammes• WorkbeganonextendingaccesstotreatmenttothedependantsofemployeeswholiveclosetoAngloPlatinum’smedicalfacilities• AngloCoalestablishedacommunityhealthcentreinBushbuckridgetogetherwithVirginUniteandUSAID/PEPFAR• Private-publicpartnershipsandwomen’srightscontinuedtobekeyfocusareas.

HIV/AIDS

OverviewAs the majority of Anglo American’s employees are located in southern Africa, the Group’s response to the pandemic is focused in this region. Anglo American runs one of the largest private sector HIV and AIDS workplace programmes in southern Africa and, since 2002, has provided free ART to employees.

The aim of our workplace response to HIV and AIDS is to achieve the correct balance between prevention, care, support and treatment within a framework of zero tolerance for discrimination, stigmatisation or any breach of human rights.

Prevention and care

TestingHIV testing is the entry point for both prevention and care. It iscritically important for all people to know their HIV status and,more importantly, to check it on a regular basis. Early diagnosisofHIV infectiongivesthebestprospectsforpropercare,supportand correctly timedaccess to treatment. It is also crucial tohelpbreak the cycle of new infections.Accordingly,we encourage allemployees to have an HIV test annually. The actual testing isalwaysvoluntaryandissupportedbycompulsorycounselling.Westrive tomake testingeasilyaccessible ina confidential, trustingandsupportiveatmosphere.

During2007,wereinforcedoureffortstoencourageallemployeestobevoluntarilytestedforHIV–ourfifthtestingprogrammesince2003.Justover70%ofthe77,000employeesthroughoutsouthernAfricaunderwentcounsellingandvoluntaryHIVtesting.AngloCoalachievedexceptionalresults,with84%coverage.TheExplorationDivision, which has a mobile workforce, provided voluntarycounselling and testing to 90%of their African-based staff. TheCorporateOfficeinJohannesburgachievedan89%VCTuptakeforthefirsttime.

TreatmentOurstrongVCTprogrammehelpsourmedicalstafftodiagnoseHIVinfection sooner. Through regularmonitoring,we canensure thatemployeesbeginARTattheappropriatestageofinfection.Wehaveclear evidence that early access to treatment leads to a strikingreduction in absenteeism, with attendant economic benefits thatcoveralargeportionofthecostofART.Attheendof2007,3,600employeeswerereceivingARTand69%oftheestimated14,000employees who are HIV-positive were enrolled in HIV disease-managementprogrammes.

Delivering the HIV/AIDS message


HIV/AIDS (continued)

Increasing treatment capabilityItiscriticaltoincreasetheskillslevelofphysicians,nursingstaffandcounsellorstoensurethelong-termsuccessoftheAngloAmericanHIV and AIDS programmes. During 2007, training programmesincluded:

• Threedoctorsand17nursesweretrainedintreatmentusingART

• Afurther22doctorsunderwentrefreshertraining• Five counselling courses were held, including a five-dayprogramme on VCT training and further programmes onadherencetoART,preventionofmother-to-childtransmission,thedisclosureofHIVstatusandcounsellingforcouplesandchildren.

Improving data captureScaw Metals and the Aurum Institute, an independent medicalserviceprovider,havebeentestingadigitaltoolthathelpsensurethatdataaboutHIVtreatmentforemployeesisstoredquicklyandaccurately.Adigitalpenandpaperisusedtoenterdataabouteachpatientandtheirtreatment.Itisimmediatelycapturedinelectronicformatandsentremotelytoadatabaseforcapturing,verificationandanalysis.Thisreducestheamountofadministrativetimeneededforeachpatientandhelpssignificantlywithadministration.Thistoolhasprovedtobecost-effectiveandreliable,withover95%ofdatasubmittedbeingrecordedcorrectly.

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

Rand

per

pat

ient

per

mon

th o

n tr

eatm

ent

Source: Muirhead D, Kumaranayake L, Charalambous S et al (2007) forthcoming

l Other medical suppliesl Direct patient contact timel Laboratory (including fees)l Drugs (including fees)l Site programme administration and managementl Site-based infrastructurel Company managementl Central programme support

12 months 16 months 24 months 30 months 36 months

Anglo American Group trends in average costper employee per month on ART

As at 31 December 2007

Anglo Platinum

Anglo F & I

Anglo Coal

Base Metals

Corporate Centre

TOTAL

Employees 51,800 10,628 8,801 2,485 1,008 74,722

HIVPrevalence 22% 9% 16% 2% 3% 19%

Estno.HIV+employees 11,396 971 1,435 53 31 13,886

VCTcases 36,195 8,749 7,415 827 895 54,081

%VCT 70% 82% 84% 33% 89% 72%

EmployeesonHIVDMP 7,281 964 1,229 27 28 9,529

%HIVDMPenrolment 64% 99% 86% 51% 90% 69%

EmployeesonART 2,940 276 364 11 26 3,617

%HIV+onART 26% 28% 25% 21% 83% 26%

HIV/AIDS key performance indicators 2007

Anglo Platinum’s IMAGE projectThethree-yearIMAGE(InterventionwithMicrofinanceforAIDSandGenderEquity)initiativesponsoredbyAngloPlatinumisanexampleofpromotingwomen’srightsinthefightagainstHIV/AIDS.Theproject,whichtodatehasbenefitedabout5,000womenin85villagesinthevicinityofAngloPlatinum’sminingoperations, isa jointventurebetweentheWitsMedicalSchoolandtheSmallEnterpriseFoundation.

Theground-breakinginitiativehascontributedtoa55%dropindomesticrape–akeyfactorinHIVtransmission.Thisstudyprovidesencouragingevidencethatacombinedmicrofinanceandtraininginterventioncanhavehealthandsocialbenefits,includingreducingthelevelsofviolenceexperiencedbyparticipants.AdditionalrecentresearchhasalsoshownpromisingeffectsonHIVprevention.Youngerprogrammeparticipants,thoseinthehighestriskgroupforHIV,werebettercommunicatorsaboutsensitivematterssuchassexuality,andweremorelikelytohavegoneforanHIVtest,andusedcondomsmoreoften.

BylinkingentrepreneurialtrainingwithgenderandHIVandAIDSeducation,thisprojectservestonotonlyempowertheseruralwomenfinancially,butdomesticallytoo, inasocietywhere issuesofpovertyandgender inequalityfrequentlyshapethenatureofsexualrelationships.The initiativewasselectedbytheWorldHealthOrganisation’sCommissionfor theSocialDeterminantsofHealthasoneof its12globalcasestudies in2007,showcasing interventionsthathavebeenproventoworkandcanberapidlyduplicatedelsewhere.

CASE STUDY


Extending care

Dependant careWearecurrentlyinvestigatingfundingandprovisionofARTatourbusinessunitmedicalfacilitiesforthedependantsofallemployeesin southern Africa who are not covered by health insurance. Asmanyemployeeshavefamilieslivinginremotepartsofthecountry,deliveringonthiscommitmenthasnotbeenwithoutmajorlogisticalchallenges,butweexpecttomakeanannouncementinthisregardduring2008.

Contractor careByaccessingfundingfromtheUSPresident’sEmergencyProgrammefor AIDS Relief (PEPFAR), treatment is also extended througha network of general practitioners to contractorsworking on oursiteswho do not have access to programmes through their ownemployers.

Community carePublic-private partnerships (PPPs) are extremely important inovercomingthechallengeofHIVandAIDS.AnextremelysuccessfulPPP is the Bhubezi community health centre at Bushbuckridge inMpumalanga. The centre, established and funded by Anglo CoalSouthAfrica,VirginUnite andUSAID/PEPFAR, has enabled us toprovidefreetreatmenttomorethan600peoplewithadvancedHIVinadisadvantagedruralcommunitywhichhistoricallyhasbeenanimportantsourceoflabourfortheminingindustry.

TheAngloAmericanCommunityHIV/AIDSPartnershipProgramme(CHAPP), launched in 2003, is aimed at accelerating Anglo’sinvolvement in community HIV/AIDS initiatives in South Africaandbuildingplatformsfornewprojects.Thepreventionofteenagepregnanciesandsexuallytransmittedinfectionsisanimportantpart

of the effort to stop HIV infection in the communities in whichwework.Againstthisbackdrop,weprovidesupporttoindividualsandorganisationsworkingtopreventHIVinyoungpeople.Anglo’sCHAPPworksincommunitiesaroundeightcompanyoperationsinsixprovinces.OftheR70milliondisbursedbytheAngloAmericanChairman’sFundin2007,R8,7millionwasallocatedtoCHAPP.

Promoting women’s rightsTheHIV/AIDSinfectionrateforyoungwomenindevelopingcountriesisfourtofivetimeshigherthanformenofthesameagebecauseof women’s physical and physiological vulnerability, inadequatereproductivehealthservicesandbecause,typically,thesewomenhave little control over their sexual and reproductive lives. As aresult, an emphasis onwomen’s health issues is an increasinglyimportant part of Anglo’s HIV/AIDS strategy. Anglo American isplaying a leading role in ensuring gender equity and improvingwomen’saccesstosexualandreproductiverightsandhealth.

14.00

12.00

10.00

8.00

6.00

4.00

2.00

0

-24

-21

-18

-15

-12 -9 -6 -3 0 3 6 9 12 15 18 21 24

Sick

day

s pe

r mon

th

* The lower the CD 4 count, the more advanced the HIV disease.Source: Muirhead D, Kumaranayake L, Charalambous S et al (2007)

Months per/post treatment start

ART start

CD 4 category *l <55l 50 - 100l 100 - 250l 250 - 350

Trends in sick days pre/post ART by starting CD4 category

Women miners at waiting area for cage to go underground


Formanyyears,wehavebeentravellersonthelongroadtowardsa

transformedSouthAfrica.Butwehavenotbeenaloneonthisjourney.

Ourshareholders,employees,customers,suppliers,aswellasthe

communitiesinwhichweoperateandtheSouthAfricangovernment

havepartneredusalongtheway.Weacknowledgetheircommitment

andtheircontribution.Withoutthem,wewouldnothavecomeasfar

downtheroadaswealreadyhaveandwewouldnothavebeenable

totouchthelivesofasmanypeopleandmakesuchalastingimpact

oncommunitiesandthebroaderSouthAfricansociety.

OurultimatedestinationisatransformedSouthAfrica.Acountryin

whicheachSouthAfricanisgivenanequalopportunitytomakea

differencetosocietyandtheeconomywithinthecontextofconcern

forthenaturalenvironment.Whilewehaveworkedhardtoembrace

the challenges of change and to accelerate transformation, we

recognisethatwestillhavealongwaytogo.

Thereisno‘quickfix’forpromotingacultureofentrepreneurshipand

participationbyallintheeconomyorforacceleratingeducation,skills

developmentandtraining;noeasywaytodealwiththeHIV/AIDS

pandemicortoimplementourpolicyofZeroHarm.Similarly,dealing

withsocialissuessuchascommunityupliftmentandenvironmental

challengeslikeclimatechangerequiresinnovativesolutionsfocused

onactions,notwords.Wehaveputtime,energy,commitmentand

fundsintoestablishingtargetsandinitiatingactionplanstodealwith

these issues–ourSEATToolboxandgreenhousegasstrategyare

justtwoexamplesoffocusedactionplansbasedontheprinciplesof

transparencyandaccountability.Thereareotherexamplesonnearly

everypageofthisreportthatbeartestimonytothis.

Whiletheissueswearedealingwithareallverydifferent,acommon

themeispartnershipandengagement.Ourrevisedsafetystrategy

incorporates the resultsofpeersafety reviewsaswellas intense

debate and discussion. The accolades we have received for our

sustainabledevelopmentinitiativesandtheChairman’sFundprojects

aredueinnosmallparttoteamsofdedicatedmenandwomenwho

takeusafewstepsfurthertowardsourdestinationeveryday.

There isaKenyanproverb thatsays,“Ifyouwant tounderstand

somebody,gowiththemonajourney.”Wehopethatthisreport

hasincreasedyourunderstandingofourjourney,ofourcommitment

toresponsiblecorporatecitizenshipandincreasedyourappreciation

ofthosewhohavehelpedusonourway.

The road ahead


Kriel Colliery has done much to improve the residential areas on its property, including the installation of this children’s playground as part of its social responsibility programme

“If you want to understand somebody, go with them on a journey.”Kenyan proverb


For further information, please contactAngloAmericanSouthAfrica45MainStreetJohannesburg2001Tel: +27116383301www.angloamerican.co.uk

Questions,queriesandcommentsto:

Premilla [email protected]

Pranill Ramchander MediaandExternalCommunicationsManagerpramchander@angloamerican.co.za

Publicationscanbeorderedthroughourwebsitewww.angloamerican.co.ukorfromthePublicAffairsDepartment,SouthAfrica

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