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Report to society 2008




                                          2008




                        Report to Society
Colombia, a country to be explored
2
Report to society 2008
AngloGold Ashanti Limited

Mark Cutifani
chief executive officer

AngloGold Ashanti Américas

Ron Largent
executive vice president americas

Steve Botts
vice president sustainability americas

Chris Lodder
exploration manager americas

Rubén Padilla
exploration director americas

AngloGold Ashanti Colombia S.A.

Rafael Herz
president

Ramiro Santa
corporate affairs vice president

Klaus Rorhbach
financial administration director

Carl Brechtel
project director, la colosa

Edwin Palacio
exploration director

Iván Matamoros
safety director

Josefina Araújo
legal issues director

David Riaño
human resources director

Luisa Fernanda Aramburo
adjunct director of concession and mining proposals

Carlos Moncada
financial and planning adjunct director

Aurelio Ganoza
project operations manager, la colosa

Luis Mario Acosta
environmental manager

Álvaro José Mendoza
occupation, health and industrial safety manager

Pablo Piombi
information technology manager

Emigdio Aguilera
financial manager

Carolina Rueda
social development and communications manager

Ramón Hernández
property, land value, and real estate issues manager

Mauricio Caldas
logistics manager

Érika Murcia
contracting and hiring and societary affairs manager




Elaboration of the Report and Consultation to the Groups of Interest
portex acción para la reputación

Design, Layout, and Printing
gatos gemelos comunicación

Person Responsible of the Report
corporate affairs vice presidency
anglogold ashanti colombia


* All the photographs included in this Report were taken from locations where AngloGold Ashanti has had exploration activities.
Report to Society 2008
Index
Presentation	                                                     3

Corporate Profile	                                                5

Our Way to Operate: Keeping in Mind the Sustainability Context	   18

Corporate Social Responsibility Model	                            24

Listening to our Groups of Interest/ Consultation	                34

A Letter from the President	                                      42

Outcomes of the Report 	                                          46

    Economic Development	                                         48

    Attending to Health and the Safety of the People	             54

    Working Conditions	                                           58

    Human Rights	                                                 66

    Relations with the Community	                                 72

    Environment	                                                  82

    GRI Content Index	                                            86
Presentation
In the present report, AngloGold Ashanti Colombia reveals the economic, social, and
environmental growth it had during the year 2008, answering after the responsibility the
company has acquired with the country and its sustainable development. In order to
complete this report, diverse interests of different groups were taken into account; Special
Interest Groups (SIGs) that were consulted, so that the company could understand their
expectations relating the company itself.

The information contained within the report is adequate to the contents that AngloGold
Ashanti Colombia considers relevant for its diverse SIGs; therefore, the company presents
this information in a way that it is clear, in terms that will allow comparisons to be made
by those revising the contents, providing precise numbers, thus allowing, in turn, tracking
of the data in the place where it was originated. In order to organize the information, the
Global Reporting Initiative (G-3) was taken into consideration; in the same way, G-3 is the
mining supplement of the company. Some of the indicators of the G-3 do not apply; this,
due to the fact that AngloGold Ashanti Colombia has not yet begun any project in Phase
7, which refers to the phase for production. This explains that the environmental elements
of this report –fundamental aspect of sustainability- appear under the exploration phase,
as explained further later on in the report.

As this is the first sustainability report for AngloGold Ashanti Colombia, it can be considered
that further annual reports that the company develops will be based on this original model.
This, we intend, will allow us to record the evidence of the growth of the company, of its
operations, and of the relationship that it has established with its Special Interest Groups.

In addition, the report includes the 10 principles of the Global Pact of the United Nations,
in which AngloGold Ashanti is active, in the same manner in which the 10 principles of the
Sustainable Development Frame1 of the International Council of Mining and Metals (ICMM),
for which Anglo Gold Ashanti is a founding member.

At the end of the report, a chart will appear. This chart intends to reveal the three
mentioned standards in order to make their comprehension easier for the reader. Some
of the indicators of the GRI have not been reported, due to the fact that the project had a
process of interruption during the year 2008; it is upmost important to remember that the
Colosa Project was leader in the company.

In order to solve any further question regarding the contents of this report, please do contact
the Vice-presidency of Corporate Affairs of AngloGold Ashanti Colombia, responsible for
the company in front of the diffusion of the contents and the Sustainability Report.




1. The first 10 Principles were elaborated keeping into account the Global Reporting Initiative, The Declaration of Río, Guidelines of the OCDE (Organization
for Economic Co-operation and Development) for Multinational Corporations, Operational Policies of World Bank, Fight Against Corruption Convention of the
OCDE, International Labor Organization Conventions 98, 169, and 176, Voluntary Principles on Security and Human Rights. The first 10 Principals may be
consulted at http://www.icmm.com
Monument to the music. Ibagué, Tolima.




10
Report to society 2008




CorporateProfile
Corporate         profile




AngloGold Ashanti

	           AngloGold Ashanti is a world class enterprise, leader in the gold production industry, whose offices
            are headquartered in Johannesburg, South Africa. The conglomerate has 21 mining operations
            around the world, and a considerable number of exploration programs in acknowledged gold
            producing areas, as it is recognized in other sites, candidates for precious metal exploitation.

	           The world program for world exploration of AngloGold Ashanti continues to gain territory, particularly
            in Colombia. The activities of the exploration site are fulfilled directly with the group, or in collaboration
            with partners or associates who hold a shared risk.

	           The company has a main office for exploration sites and new businesses of AngloGold Ashanti
            Limited for the Americas, located in the city of Bogotá, from where all projects are coordinated and
            administered. In Colombia, there are several exploration projects at present, two of which are at
            an advanced level: Gramalote and La Colosa, both located in the center of the country, and other
            projects which stand at an initial stage.

COLOMBIA, A COUNTRY TO BE EXPLORED (ANGLOGOLD ASHANTI COLOMBIA)

	           AngloGold Ashanti Colombia develops a mining project that is responsible with the environment
            and with society; a project that is oriented towards corporate values and aligned with the highest
            international standards such as Global Pact of the United Nations and the Volunteer Principles in
            Safety and Human Rights.

	           In Colombia, tasks towards the revision of the cartography and prospective since 1999, in alliance
            with other companies were initiated. Since the year 2003, it began operating under the name
            of Sociedad Kedahda, Kedahda Associates and, since the year 2003, it acquired its new and
            current name AngloGold Ashanti Colombia. Between the years of 2003 and 2004, the company
            has developed an exploration program that has covered 8.5 hectares, a program destined to the
            geological generation of high prospective, where 500 hundred sites were acknowledged as sites of
            interest for the company (geological anomalies).

	           As a part of its politics, seeking to support development, AngloGold Ashanti locally acquires the
            products, services, and labor that are required for its projects; thus, contributing to the economic
            dynamism of the areas where it operates.

       12
Report to society 2008




Corporate Objectives
In order to accomplish its corporate objectives, AngloGold Ashanti
Colombia has focused on five main strategies:


  1.   People are our Business
       The company offers the leadership and administrative support processes required for the
       establishment of the appropriate corporate climate in such a way, that every individual is in complete
       ability and willing to give the best of him or herself.


  2.   The Growth of the Business
       The successes of the company, in its exploration processes as well as in corporate growth,
       compose the construction block which is most important for the future creation of the corporate
       values. AngloGold Ashanti Colombia seeks values that will accredit its objectives M&M, and new
       corporate investments that can be built upon main strengths, generating additional roads that lead
       towards development.


  3.   Administering the Business as an Asset Portfolio
       AngloGold Ashanti Colombia, aware that capital can be a limited resource, has decided to use it
       wisely, guarantying that its strategy has such coverage that it may benefit the business opportunities.
       At the same time, it is consequent with the tasks that it must implement in order to reach the highest
       potential. This is the reason for it to sell assets that are not relevant, assuring that operations may
       revive themselves that are close to their purpose, thus allowing new growth opportunities to arise.


  4.   Maximize Margins
       The company administers its margins of income and costs in order to insure the coverage and the
       protection of devolutions according to the cycle of pricing. Currently, it is assembling a new corporate
       framework in order to strengthen this maximizing process as well as strengthening the practice of
       reaching high quality levels, which is a constant in all processes, all in the purpose of bettering and
       sustaining the creation of value.


  5.   Deliver Sustainable Outcomes
       Safety and Health are the most important values for the company; these values represent the
       company’s commitment towards the people of the community because they reflect their well being.
       The company has responsibilities that are important in the behavior towards the environment and
       the construction of community relationships, political and institutional relationships, in the hopes of
       delivering outcomes for mutual benefit, and the creation of sustainable value.
OUR VALUES




                                      We Treat Eachother                 We Value Diversity
                                with Dignity and Respect                 We have an objective: we consider
      We strongly believe that individuals who are treated               that being a global leader with people
          with due respect, and to whom responsibility is                who are adequate and with the
          granted as a part of this principle, are bound to              adequate tasks, is fundamental. We
           respond with great enthusiasm. We are honest                  promote inclusion and work teams,
         to ourselves and with others, and we give ethical               thus obtaining benefits from the riches
     treatment to all our social and corporate associates.               of the cultural diversity, of the varied
       We seek to preserve the dignity of people in all our              ideas, experiences, and talents that
     actions and relationships; we respect people for who                every employee contributes to the
        they are; and we value the contribution that each                business.
       individual can provide, so that our business can be
                                          truly successful.




                 Safety is our Main Value


                 We place people first, and in the same manner,
                 we keep safety and health practices in the same
                 regard within the work systems of the company.
                 We are responsible for seeking to find new and
                 innovative ways to assure that our workplaces are
                 free of accident causing elements that may cause
                 injuries and occupational illnesses. We live every
                 day as a full experience; we live for one another, in
                 our commitments, our talents, our resources, and
                 our collective systems, so that we can guarantee
                 our most important value: Safety.




         14
Report to society 2008




                                                                                          We Respect the Environment
We are Responsible for our Actions and                                                    We have committed to better on a
We Acknowledge the Fulfillment of the                                                     permanent basis all our processes,
Totality of our Commitments                                                               thus avoiding contamination, minimizing
We are focused on delivering outcomes,                                                    waste, raising the efficiency of our
thus we do what we intend and announce                                                    carbon, and making appropriate use
to do. We acknowledge our commitments,                                                    of our natural resources. We seek to
and we are responsible for our work, our                                                  develop innovative solutions in order
behavior, our ethics, and our actions. We                                                 to mitigate the environmental risks,
project our outcomes of high profitability,                                               thus having a positive impact on our
and we assume the accomplishment of                                                       atmosphere.
our commitments with our colleagues,
our associates, our social and corporate
associates, as well as our investors.




                                              The Communities and Societies where
                                              We Operate will be Benefited Due to
                                              the Presence of Anglogold Ashanti
                                              We support and promote human rights
                                              where we work. We contribute in the
                                              construction of productive alliances with
                                              the communities where we operate. We
                                              seek to leave a better future within the
                                              communities.
GOVERNANCE

	        The exercise of corporate governance at AngloGold Ashanti Colombia is responsibility of
         the team of directors, as a whole, under the leadership of the President of the company.
         This organ makes decisions regarding the atmosphere of operations of the company in
         Colombia. The decisions are validated at a Board Meeting and with the headquarters in
         South Africa.

	        The criteria for orientation are the directors of corporate governance at AngloGold Ashanti,
         as are the Ethics Code of the company, the Business Principles, the Politics and legal
         framework documents of the company (the Code for good governance and general
         guidelines are available for consultation at the website: http://www.anglogoldashanti.com/
         About/Corporate+Governance/Guidelines.htm).

	        For the adequate development of its operations, during the time for which this report was
         being completed (2008), the company had the following organization chart:

	        AngloGold Ashanti Colombia worked on restructuring of the company during the year 2009,
         which was not incorporated in the present report and will be reflected on the Sustainability
         Report of the following period. This understood, Mr. Chris Lodder, who appears as the
         President for this period, was designated as Exploration Director for the Americas, and
         Rafael Herz joined AngloGold Ashanti Colombia as President.




                                                                President




    16
Report to society 2008




 Legal Issues
   Director




   Financial
Administration
   Director




   Human
 Resources
  Director




   Social
Development
  Manager




Vice President
  of Public
    Affairs




   Safety
  Director




 Exploration
  Director




Environmental
    Issues
   Director




Information
Technology
and Database
  Director
Geologists trace the paths in the map. Jericó, Antioquia.




18
Report to society 2008




ourwaytooperate
      Keeping In Mind The Sustainability Context
Our Way
                                                 to Operate: Keeping in Mind
                                                 the Sustainability Context

AngloGold Ashanti

	                                 For AngloGold Ashanti Colombia, the cycle of production of gold has eight phases in which the
                                  perspective of sustainable development is always a priority, as it is fundamental to acknowledge
                                  the permanent closeness to the communities that inhabit the areas where the company operates.
                                  For this reason, each one of these phases, the challenge that sustainability establishes for the
                                  development of the business.


             Phase 5                                       Phase 4
                    Feasibility                            Prefeasibility



             Phase 6                                       Phase 3
    Constructions and Staging                              Perforation
            of the Mining Site


             Phase 7                                       Phase 2
                   Production                              Detailed analysis
                                                           of rocks and soils


             Phase 8                                       Phase 1
               Mining Closure                              Area Acknowledgement
              and Postclosure                              and Sampling




                            20
Report to society 2008




                                 Phase 1

             Acknowledgment of the Area
              and Sampling (1 to 2 years)

An acknowledgement of the area is made,
   to facilitate sampling of sediments and
   geographical cartography at a regional
                                      scale.                                           Phase 3
    Challenges: Previous to initiating the
    activities of prospecting, a dialogue is                                           Perforation (1 to 3 years)
    established with the community in the
                framework of human rights.                                             Perforations are made in order to revise
                                                                                       and validate the geological concepts
                                                                                       established previously in phase 2. If
                                                                                       perforations are geologically successful,
                                                                                       levels of metal concentration are tested
                                                                                       in a specific amount of rocks, what
                                                                                       is technically known as “Recursos
                                                                                       Inferidos”, “Inferred Resources”.
                                                                                       Challenges: Given the fact that it is
                                                                                       during this phase that labor is sought
                                                                                       in an intense manner, the company
                                                                                       deliberately hires workers from the area
                                                                                       where the perforation is being performed,
                                                                                       and dignifying conditions in terms of
                                                                                       health and safety are analyzed with the
                                                                                       worker’s assessment in order to establish
                                                                                       honorable conditions for work and to
                                                                                       maintain excellency in these aspects.




                                               Detailed Analysis of Rocks and
                              Phase 2          Soil (2 to 3 years))

                                               The detailed geological cartography
                                               is completed.
                                               Challenges: During this
                                               phase, several encounters are
                                               accomplished with the communities
                                               in order to acquire a social baseline
                                               that can allow the social, political,
                                               economic, environmental, and
                                               cultural characteristics to be
                                               identified in the area.
Phase 4
                                                                                   Prefeasibility (1 to 3 years)

                                                                During this phase perforations and more detailed
                                                       metallurgic studies are completed in order to overcome
                                                              the Inferred Resources (outcome of the analysis of
                                                       mineral presence in the nuclei present in the perforation
                                                               studies) to Adequate Resources, which define the
                                                     accurate amount of metal that the rocks contain. Feasible
                                                     technical, operational, environmental, financial, and social
                                                                                 scenarios are proposed as well.
                                                      Challenges: Aside from maintaining standards of health
                                                     and safety for workers, the company maintains a policy of
                                                       efficient use of resources- water, light, and other natural
                                                      resources-, with the intent to minimize the maximum the
                                                        trace of carbon, and to continue the implementation of
                                                                                the plan for social management.




                                                 Phase 5
                                 Feasibility (1 to 2 years)

           During this phase, the feasibility of the different
         scenarios presented during phase 4 are analyzed
       (environmental, social, financial, and technical) and
perforations are developed with smaller centers, dug at
154 feet, to establish which percentage of the probable
      reserves may really be exploited. In addition to this,
  pilot metallurgic tests are run in order to determine the
 percentage of the metal that can actually be recovered
  from the rock. At this stage, the estimate is produced,
hence allowing the financial and human resources to be
 determined, the same resources that will be required in
 the construction and operation of the future gold mine.
 Challenges: The social, economic, and environmental
 map are updated in order to determine the actions and
     the plans to be followed; plans that contribute in the
  bettering the local conditions of the community where
                                the mine is being operated.




                                                                                            Phase 6
                                                                         Construction and Staging
                                                                   of the Mining Site (1 to 3 years)

                                                During this phase, the infrastructure that is required
                                                                        for the production of the mine.
                                              Challenges: The main challenge for the sustainability
                                                   in this stage is the strengthening of the economic
                                               facet of the region; this facet is fundamental in order
                                                     to make the mining operation one that promotes
                                                    local development rather than turning into a local
                                                    economic competition for the region. In addition,
                                                      biodiversity must be cared after, as must be the
                                               training of the people of the region, so that the work
                                                     posts at the mining site may be fulfilled; the local
                                                  people are not prepared to fulfill the requirements,
                                                  therefore, public and private alliances are made in
                                                             order to complete the training programs.




         22
Report to society 2008

Phase 7

                    Production (10 to 20 years)

                    This phase is dedicated to the production of the mining
                    project, hence accomplishing the commitment of the
                    sustainable production compatible with the environment
                    and society.
                    Challenges: To make the operation compatible with
                    the environment by using the highest standards in the
                    development of this activity, thus guaranteeing the
                    adequate usage of natural resources and promoting the
                    care of the health of the workers and of the inhabitants
                    who are close to the project. The strengthening of the
                     social and institutional capital is also a priority for the
                     company, supporting the surveillance of the resources
                     from the tax contributions and royalty.




                Mining Closure and Post closure (1 to 3 years)

                Once the exploitation phase is finished, the social and
                environmental commitment of the company continues
      Phase 8   providing rehabilitation of the areas that were intervened
                by the mining project, and developing processes that
                may guarantee the social, economic, and environmental
                sustainability of the area.
                Challenges: The main challenge in this phase is to continue
                nurturing the relationship with the people of the community,
                so that the sustainability projects designed and proposed
                during the previous phases may be concluded successfully,
                even if the company is no longer operating the mine. It is a
                priority for the company to be able to guarantee that the area
                where the operation was developed is in similar or better
                conditions than when it was intervened by the project.
indigenous group member Sierra Nevada de Santa Marta, Magda-




24
Report to society 2008




corporatesocial
  responsibility model
Corporate Social
                                                                         responsibility model


	               During the second semester of the year 2007, an internal and external diagnosis was developed
                within the corporate social responsibility model in order to identify corporate social responsibility
                policies, procedures, programs, and practices RSE in relation to the groups of interests, and in
                order to define the baseline for the development of the strategy of reputation for its operations in
                Colombia.

	               This diagnosis was the first of three planned cores which include the design and implementation of a
                Reputation Strategy (which began in the year 2008), and an exercise in rendering accounts through
                a Sustainability Report in the year 2009.



                     2007                                 2008 - 2010                              2009
    2007                                2008 - 2010                                   2009
                                                                                              measuring
            diagnosis                                     strategy                            and report



     internal               external            design           implemeNtation        indicators and report



	               The purpose of the diagnosis was to find empirical evidence to support a integral strategy of
                reputation that combined social corporate responsibility with corporate communication. The findings
                of this research allowed the design of the strategy including and taking into account international
                standards like the G3 format of the Global Reporting Initiative (GRI), Global Compact Principles and
                the guidelines of The Voluntary Principles on Human Rights.

	               The investigation, in general terms, generated the following steps:

METHODOLOGY

	               An exploratory-descriptive methodology was implemented, which sought to specify the significant
                perceptions about social representations amongst groups of interest regarding AngloGold Ashanti
                Colombia.

	               The process was carried out using three investigation techniques

                •	    Demi-structured Interview with specific people and strategies, both inside and outside of the
                      company.
                •	    Data Analysis based on the revision of formal and non-formal documentation from each area of
                      the organization.
                •	    Direct Observation. Through which, data was collected from outside, this done by observing
                      behavior without interacting with the participants or social groups



           26
Report to society 2008




DESCRIPTION OF THE PROCESS

	          The investigation was formed by an internal and external characterization. The first of the two
           included revision of the documentation collected previously, as well as interviews to the board of
           directors and to the people responsible for the social responsiblity processes and policies RSE of
           the company. The second characterization included interviews made to the representatives of the
           significant groups of interest, identified during the internal characterization- an observation of the
           operation environment and the company performance in it- a data analysis of documents and results
           according to international standards of reference.

	          The following activities were carried out during the investigation process:

	     Stage 1- Internal Characterization
          •	 Data and Documentation Analysis. Formal and non-formal documentation data from different
              areas was reviewed to guide the management of the company. They were analyzed based on the
              fundamental international principles chosen for this particular study (GRI, Global Compact, and
              Voluntary Principles)
          •	 Interviews to Employees. 12 interviews were carried out with the head of departments,
              programs and projects of the company. 

	     Stage 2- External Characterization
          •	 Visited Municipalities. The regions of interest for Anglogold Ashanti Colombia (AGAC) were
              visited in order to carry out different activities, such as interviews with key informants, as well as
              observation and collection of documentation from each one of the municipalities.
            	 The regions visited were: Bogotá, Cajamarca in Tolima, Quinchía in Risaralda, and SanRoque in
              Antioquia.
          •	 Interviews. In each municipality the different interest groups were interviewed. The data is
              summarized in the chart below: the data that appears by region and groups of interest identified,
              according to the information on each person who was interviewed, can be found in the final
              document.
          •	 Documentation. The data gathered from the analysis of the documentation that was picked up
              from the different regions during the activities and the development of the plan, revealed the reality,
              opportunities, and perspectives of the different municipalities where the company operates, with
              the purpose of studying the context in which CSR is practiced by AGAC.




                                               BOGOTá    CAJAMARCA        QUINCHÍA      SAN ROQUE          TOTAL


            Government                           3             3               2              3               11
            Education Sector                     -             3               1              1               5
            Health Sector                        -             1               -              2               3
            Police Forces                        -             2               2              1               5
            Suppliers                            2             1               2              -               5
            JAC                                  -             4               3              2               9
            Autonomous Regional Corporations     -             2               -              1               3
            NGOs                                 -             2               2              -               4
            Shareholders                         1             -               -              -               1
            Mining Sector                        1             -              3               3               7
            Employees                            7             5              2               2               16
Results

	              From the investigation and the data analysis, a new strategy of corporative reputation was posed
               in order to answer to corporate social responsibility issues combined with internal and external
               corporate communication.

	              The model is formed by three lines of strategy:



                          POSITIONING                     PERFORMANCE                      DEVELOPMENT
                           STRATEGY                         STRATEGY                         STRATEGY



                     Transformations of                 Assurance of the                 Activity of the
                     imaginaries, through an            corporate platform               corporate citizenship,
                     integral performance on            to support the                   aimed towards
                     behalf of AGAC, for a              management of the                sustainable
                     proper development of              company in order to              development of AGAC
                     the Gold Mining Industry           achieve the social               and its stakeholders.
                     in Colombia.                       license.



                                                             Strategy


                                      A good neighbor            Policies         Governability


                  A good ally              A good            Procedures          Environmental        Development
                                          employer                                    care




               PERFORMANCE STRATEGY refers to the adoption of standards, procedures, norms, and
               principles that Anglogold Ashanti compels to assume according to the national gluidelines
               established by the law, as well as the international ones, withing a corporate social responsibility
               and human rights framework, seeking for sustainable development.

               POSITIONING STRATEGY refers to AGAC aim to uphold good interaction with each one
               of its stakeholders, in a relation of “win-win”: On one hand, the company contributing to the
               improvement of living conditions of the inhabitants of those interest groups, and on the other
               hand, allowing those interest groups to run an efficient operation in which the mission goals can
               be accomplished. To do so, AngloGold Ashanti expects to be:

	
                  A good employer, who gives priviledge to hiring local labor and services, as well as being an
                  employer who honors workers dignity contributing to their life projects.

                  A Good Neighbor, in other words, a company that supports local development through offering
                  respect towards the communities where we operate, hence becoming an active entity that
                  supports innovative initiatives coming from regional and multi-sectoral areas proposed with the
                  purpose to improve the environment of the zones we operate in.

                  A Good Ally. AngloGold Ashanti Colombia expects to be contributor of the State entitities,
                  both regionally and nationally, by giving its input based on experience to these entities, so that
                  they may apply this transfer this knowledge as one of the criteria in the design of new public
                  policies, or the bettering of existing strategies.



          28
Report to society 2008




DEVELOPMENT STRATEGY seeks that AngloGold Ashanti Colombia reaches its mission
goals in an efficient and successful manner. However, the company is fully aware that it does
not operate alone, and that its opertation does affect the surrounding communities. This is the
reason for which the company intends for the social groups that are involved grow along with the
company’s development projects. The company seeks to become a part of a mining activity that
is, in turn, a form of development and dynamism of these social groups in opposition to becoming
an activity that promotes competition for an economical status against these regions.

This strategy defines three complementary lines of intervention whose aim is the sustainability of
the mining activity and the communities:

  Governability: seeks to increase social and institutional capital of the communities where
  AngloGold Ashanti Colombia operates. Being aware, as the company is, that one of the
  greatest positive impacts of the mining activity is the transfer of economic resources to
  the municipalities and departments through taxes and royalty, it is mandatory that these
  communities are trained in construction of civil matters and of democratic participation
  understanding in order to insure that all those resources are destined to improve living
  conditions in the communities of the region.
  In the same way, it is necessary to reinforce local authorities, so that they may acquire the
  criteria and tools needed to elaborate public and institutional policies to support local and
  regional development, and so that they may find in AngloGold Ashanti Colombia a significant
  actor, who commited to corporate responsibility compels to comply with standards that answer
  to these policies and processes.

  Economic Development. Intends to reinforce the economical vocation of the municipalities
  where the company operates, making the mining activity an alternative to development of
  the region, generating ways to improve living conditions in the communities in opposition
  to becoming an activity that promotes competition for an economical status against these
  regions.
  On the other hand, this line of the process intends to generate and strengthen good
  practices in the production, distribution, and trading process of the products and services
  that municipalities make and give. This initiative is reached by the support provided towards
  productive projects, promoting innovation and ongoing assessment programs directed towards
  improving the economical activities of the inhabitants. This allows people to leave behind an
  economy which is aimed towards subsisting, and acquiring tools that will allow an sustainable
  economy to take place, thus generating income and welfare for the people in the regions.

  Environmental Care. Although AngloGold Ashanti Colombia has a complete area dedicated to
  watching over the environmental processes that surrounds the mining cycle; the social area of
  the company is responsible for creating an environmental and sustainable awareness amongst
  the people from the different municipalities where the company develops the mining activity.
  The main idea is to promote an ethics approach towards the ecosystem and habitat of the
  regions where the company operates, and our collaborators are, upholding actions and
  activities to improve the level of respectfulness towards the environment, thus leaving a legacy
  for the new generations of a cleaner and better section of this planet, that is livable, and that
  has better living conditions for all forms of life.
OUR WAY TO APPROACH COMMUNITIES

	                In order to interact with the communities, AngloGold Ashanti Colombia has developed a Model of
                 Social Management, in the hopes to systematize experiencies of interventions with collectivities by
                 establishing a guide route, and promoting the participation of the communities through coherent
                 and organized actions.

	                The intention of this Model is to create a route for an initial approach towards the communities, as
                 well as the tracing of actions and performances that derive from this activity. Keeping into account
                 that the development of a human group is, at the outset, a responsibility of its own, the company
                 can provide its own resources, participating as a guiding element that seeks to orient the collectivity
                 in the adequate usage of the resources. However, the private sector cannot takek the place of the
                 community nor may it take the place of the State in this event or in any other.

	                The basic information included in this Model allows a methodology of social intervention to be
                 developed, as well as allowing the company to generate criteria and indicators that would, in turn,
                 allow the development of tracing and monitoring systems and the ongoing assessment of actions
                 and projects that AngloGold Ashanti Colombia carries out in its relation with the communities.

	Our Social Management Model, in the same manner, is a concensual and participative process with
  the local authorities as well as with the communities, which works as guide in the implementation of
  actions from and towards the communities.

The Model of Social Management of anglogold Ashanti is the following one:




                                        Concertation
                                         Expectation alignment .
                                         Project, proposal, and initiative definition.




     Approach
      Social Participative Diagnosis.
      Social actors search.




     Pre-approach
      Presentation of the company.
      Social mapping.
      Data collecting .




     Re-approach
      Measurement and assessment.
      Report rendering.
      Revision and adjustments.         Praxis
                                         Project development,
                                         proposals, and initiatives.




           30
Report to society 2008




    This bridge over the Magdalena river, brings Mompós
    and El Banco together. Mompós, Bolívar.



	                  The stages of the model are not considered a lineal chain that needs a developed stage to be
                   developed before or after another, rather, it is a model that is understood in a complex manner,
                   this would mean, that they are considered moments of a continous cycle that receives permanent
                   feedback from all the stages. The process can be developed in a consecutive, secuencial, or
                   simultaneous way.

The description of all the stages is the following one:

                    Pre-approach: In this first moment, considerations about the place where the company is
                    going to develop its operations are carried out. The idea is for the personnel of the social area
                    to research and recognize the area, through the revision of certain data found in documents,
                    significant information from the place, so that when the company arrives to area, the personnel
                    knows how to reach out to the people and how to present the company in an understandable
                    language for the local people of the region where the exploration project is to take place.

                    Approach: Once the company has had contact with the community where the exploration
                    is carried out, a person from the social area meets the people in charge detected through
                    the previous stage known as Pre-approach of data revision, and who have previously been
                    contacted. With the detailed information, plus the information acquired during the meeting with
                    previously identified social actors, this person produces a brief social diagnosis of the place in
                    order to draw a map that will allow the bettering of the relationship between the company and the
                    community.

                    Concertation: With a basic knowledge of the place –which depends directly of where the mining
                    cycle stage is- the person from the social area arranges appointments and meetings with persons
                    from the community, actors, and social leaders, where the actors present their pretensions,
                    goals, and social interventions of the company. In this same way, the company may listen to the
                    expectations of the community to make decisions on the route to be followed and what kind of
                    intervention may be carried out.

                    Praxis: Through the meetings with the community, and thorugh the agreements upon
                    expectations of both actors, the person form the social area will take action and will develop
                    proposals, and will develop projects according with the three lines of intervention of the Social
                    Strategy of AngloGold Ashanti Colombia. For this intervention to be developed, the projects and
                    actions that are aligned with these three statements (economical development, governability, and
                    environmental care) will be priviledged.
Fisherman. Fundación, Magdalena.




                    Re-approach: in the relationship to the community, it is fundamental to develop a tracking or
                    monitoring of this interaction. For this reason, it is necessary to revise the execution of the
                    projects, the development of the action plans, the performance, and the emerging of new
                    expectations of the community, and, in general terms, all the communicational actions that the
                    company directs to the community and viceversa. This process has vital significance to the
                    company for it implies the mutual transformation of imaginaries and social representations which
                    will give way to a clearer and more open relationship between the company and the community.
                    	
Closure
	Every stage of social intervention must have a moment of closure that allows the feedback to
        take place, to adjust, as well as to socialize the process with the social actors involved, and to
        communicate if the rest of the mining cycle is to be concluded or not.
	
	       Moreover, the closure allows the company to show gratitude towards the people for authorizing the
        presence of the company in the region, and for having allowed all the mining activities to be carried
        out.




                                                                  The Model of Social Management
                                                                  is conscientious and participative,
                                                                  in which both, the local control
                                                                  entities, as well as the very local
                                                                  communities work jointly in order
                                                                  to achieve common goals; this
                                                                  Model guides the implementation
                                                                  of actions towards and from the
 Reservoir of La Salvajina collects the                           communities.
 waters of the waterfall. Suárez, Cauca.



               32
Report to society 2008




Due to its ample cultural tradition, Ibagué is known as The Musical City of Colombia. Ibagué, Tolima.
The economy of the department of Tolima is divided in agricultural, livestock, and mining activities. Espinal, Tolima.




34
Report to society 2008




               listeningTO
our groups of interest / consultation 2009
Listening to
                       our groups of interest / consultation 2009


	        AngloGold Ashanti Colombia is aware that in order to be able to operate, it is mandatory to nourish
         the relationship with the people of the community or with the groups that are vital to the generation
         of value for the company. In this relationship, the company generates impacts- real and potential
         impacts- over other groups, and, simultaneously in turn, it receives effects from them; thus it
         becomes necessary to recognize and identify them, and once this is accomplished, to determine
         the most adequate channels by which these relationships can be sustained, in the same manner,
         the mechanism and the frequency of the encounters and the reciprocal communication.

	        In the exercise of recognition of the interest groups, AngloGold Ashanti Colombia has identified the
         following:




                                                                   Headquarters
                                                                   Directors
                                                                   Associates
                                                                   Employees
                                                                   Suppliers and Outsourcing
                                                                   Public Entities
                                                                   Civil Society
                                                                   Media and Communications
                                                                   Environment
                                                                   Exploration Projects
                                                                   Mining Area and Other Companies




    36
Report to society 2008




	   Given the importance that people have for AngloGold Ashanti Colombia, formal relationships with
    the community are sustained in a permanent way, through three main mechanisms: the first of the
    three being the person to person encounters as well as with small groups through the social team
    that is present in every exploration project. During these meetings, the company is presented to
    the community; in the same manner, the expectations of the people towards the presence of the
    company are heard by AngloGold Ashanti Colombia.

	   The second mechanism of the three is the Corsae (Social, Environmental and Corporate Responsibility
    Committee), a permanent forum of dialogue and encounters, designed and promoted by AngloGold
    Ashanti Colombia in the areas where the exploration sites are being developed. The Corsae allows
    the company to rely on the participation of the neighbor community from the earliest phases of the
    mining cycle. The Committee is formed by individuals or social actors from the public area (local
    authorities), from the private area (local businessmen, commerce men or merchants, and trade
    unionists), from the third area (Non Governmental Organizations – NGOs-, civil associations, and
    foundations), as well as members from the civil society (social leaders, presidents of Community
    Action Committees, religious leaders, etc.). The Corsae is a privileged space where the company
    presents itself before the public and the community, and, in turn, recognizes the expectations and
    concerns that the communities where the mining project operates might have.

	   The third and last mechanism is a strategy of consultation to the community in general terms,
    for which the company hires specialized outsourcing in this topic, in such a way that they may
    run research on the perception that communities have respecting AngloGold Ashanti Colombia,
    their expectations, and the routes of action to be taken in order to better the relationship with the
    communities.

	   This third mechanism is run through face to face interviews, either individual or at a group level. In the
    exercise of the mechanism all groups of interest are involved, which grants them with a sensation of
    being acknowledged and recognized by the company, and that their opinions and expectations are
    actually taken into account. Aside from the interviews, there are also social surveys run through polls.

	   From this consultation process, AngloGold Ashanti Colombia has identified the following nuclei of
    perception and expectation towards the company.




                                                                             Sunday Market. Natagaima, Tolima.
Headquarters


                    Directives


                   Associates


                   Employees


     Suppliers and Outsourcing


                Public Entities




38
Report to society 2008




The directives and the shareholders see in AngloGold Ashanti Colombia in a consolidation stage, which, as it
carries out production processes in Colombia, may contribute to the development of the country and to the
production of profit for the company and, therefore, for the shareholders. During the first consultation, the
perception of the headquarters was optimistic due to the investment opportunities available for Colombia and
for the potential gold resources identified. During the second consultation, the perspective was less optimistic
due to the difficulties that the company has encountered, in terms of what judicial safety is concerned, to
provide permanence to the exploration programs. Hence, the expectations are centered in clear criteria that
may allow the company to give continuity to the exploration processes and the mineral production processes,
in order to assure the investment programmed for the country, and to increase such investment, all from the
scenario of safety judicial guarantees that will permit the company to run its operations.




They perceive AngloGold Ashanti Colombia as a company that has gained national identity and that, given its
financial strength and its mission objectives, which could very well be an important factor for the development of
the country and the communities in which the company develops its projects. The expectations are centered,
as are the shareholders, in that the company may operate furthermore within the Colombian territory, not merely
doing so in exploration processes, but also in gold production processes. Aside from this, the directives have the
expectation that the company may be acknowledged as a responsible company, that complies- and goes beyond
this point- with the highest standards in economic, social, and environmental demands, as it contributes to the
development of the country.



The mining companies, with which AngloGold Ashanti Colombia develops exploration projects through joint
ventures, perceive AngloGold Ashanti Colombia as a reliable company, one that strategic alliances for foreign
investment may be conducted due to its financial sturdiness and its ethics standards and social responsibility
which guarantee that the company will indeed comply with the commitments that it has acquired. The
expectation is that the company may generate profit in Colombia, thus continuing to perform a win-win
operation, and, as a consequence, contributing to the economic development for the country.




The employees perceive AngloGold Ashanti Colombia as a company that runs permanent ongoing
improvement processes; perceived as a company that is concerned with creating and promoting a sense
of identity amongst its employees through diffusion of its corporate values and the active leadership of its
directors. The expectations of the collaborators is that the company improves its internal communication
processes in order to achieve a better internalization of the corporate values, and that AngloGold Ashanti
Colombia may continue to operate in the country, for they consider this to be a great place to work at.




They perceive AngloGold Ashanti Colombia as a company that is concerned with the fulfillment of legal,
social, and environmental standards in the completion of joint ventures; also, AngloGold Ashanti Colombia
is perceived as a company that has contributed in the formalization of some suppliers and their processes-
mostly, those local suppliers where the company holds exploration projects-. In this sense, the company is
responsible in delivering checks that present no delay with the goods and services that it has outsourced, as
it is also responsible in offering a fair price in these negotiations.
The expectation- particularly of the local suppliers- is that the company continues in the region and that it
continues to provide training in tributary issues, commercial management, and productive chains, because
they consider that this is a great way to increase their income, for they stop being exclusive suppliers for
AngloGold Ashanti Colombia to be able to offer their goods and services to other organizations, thus having
other opportunities for growth and revenue.



The public entities, those that are local as well as the ones that are regional and national, perceive AngloGold
Ashanti Colombia as a company that has come to the country with intent to invest. Aside from this, it is
perceived as a company that complies with legal standards, therefore, it is perceived as being responsible
with the Colombian legislation. Some mayors, deputies, representatives, and senators allegedly see in
AngloGold Ashanti Colombia a multinational company that, as many foreign companies, are merely seeking to
gain revenue without the intent of true development for the country.
The expectations of the authorities that do have a positive perception of the company are that it may, indeed,
continue its operations in the country, thus providing income for the State through the tax contribution and
royalty. In the same way, with its presence, that it may contribute in the employment generation process and
with the appropriate communication in the whereabouts of its accomplishments in the standards of social and
environmental responsibility.
The expectations of the public entities that have a negative perception of AngloGold Ashanti Colombia is that
the Colombian State regulate the company with higher rigor or severity and that it may limit its possibility to
operate.
Civil Society


          Media and Communications


                        Environment


     Mining Area and Other Companies




40
Report to society 2008




In the communities that were consulted the perception is that AngloGold Ashanti Colombia is one of the
biggest mining companies in the world due to its foreign capital. Most of the people possess a positive
opinion about the company, for they know the way that the company operates, so they consider that the
company operates in a responsible way, taking into account the concerns of the communities.
Some social organizations and local community members have a negative perception of the company, this
is based more on the fear that the company’s actions may be detrimental to the environment and that the
State may not have the adequate tools to mitigate or assume the negative consequences of the company’s
damage. The main expectation of the communities is that AngloGold Ashanti Colombia complies with the
legal standards surrounding the environmental issues in those possible sites where gold may be produced. A
second expectation is that the company does generate employment in the communities, thus contributing to
the local development




The journalists who work for AngloGold Ashanti Colombia perceive the company as a solid organization in its
financial area, as a company that is responsible of the law, and as a company that holds relationships with the
media based on respect. Aside from this, they feel that it is prompt to respond to concerns that the journalists
may have. Some of the local journalists- particularly in the case of the city of Ibagué- perceive mining as
dangerous, and consign the need to learn about the development of the is activity with standards that will
allow it to be responsible with the environment and with society.
The expectation of the journalists- and leaders of opinion- is that AngloGold Ashanti Colombia may be
accessible when it comes to offering information about its processes, and that it may answer the concerns of
the media -in the name of society- when the journalists may pose them.




The environmental organizations consulted may be classified in two types or groups: The first of the two types of
organizations are the ones that support mining activities that are run in a responsible manner, with the preservation
of the environment as a principle. And there are those types of organizations that do not support the mining activity,
because they consider it to be a hazard towards the environment and that, therefore, ought to be forbidden to
operate. The expectations of the second group are that AngloGold Ashanti Colombia leave the country and that
it does not operate in it. On the other hand, environmental organizations that are less fundamentalist hope to see
AngloGold Ashanti Colombia operate in order to demonstrate to the country that the great ore mining activity is
indeed a responsible one towards the environment, due to the high standards of environmental responsibility in the
operations that it develops abroad



The extractive industries of the country perceive AngloGold Ashanti Colombia as a serious, solid, and social
and environmentally responsible company. Likewise, they believe AngloGold Ashanti Colombia can become
a leader in the processes of gold production in a technically responsible manner. The main expectation
towards AngloGold Ashanti Colombia is that it promotes processes of education and information diffusion
that may allow a transformation of the social imaginary that poses mining as an evil process, damaging to
the environment, and that it only generates revenue to the owners of the business, while it impoverishes the
communities.
42
A Letter
                              from the President



	       In the name of AngloGold Ashanti Colombia, it is a pleasure for
        me to render the first Sustainability Report that the company
        has devised in order to present its economic, social, and
        environmental development during the year 2008. It is right to
        assure that the headquarters has been compiling a social annual
        report with the parameters of the Global Reporting Initiative since
        the year 2003, for the case of Colombia, this is a milestone,
        due to the fact that previous reports to society were thought
        out as a social balance. For this reason, it was decided to give
        the next step, in accordance with the headquarters and other
        leading companies in the world, in processes of corporate social
        responsibility.

	The year 2008, One of Challenges

	       The year 2008 began with an important happening for the company:
        the halting in the operations of the mining site of La Colosa project,
        due to the suspension order issued by the Corporación Autónoma
        del Tolima (Cortolima). That situation took the company into
        pondering about the implications that it has to make investments
        in this country and about the future that it holds for the business,
        under the context of judicial uncertainty.

	       As a token of irrevocable will of the company to invest and
        believe in this country, proving that the mining activity is indeed
        compatible with sustainable development, trying to diminish the
        disjunction posed by some opponents about the country being:
        “Mining Colombia or Environmental Colombia”, AngloGold Ashanti
        Colombia continues to make national investment programs in order
        to develop exploration projects.
According to the Ministry of Mining and Energy of Colombia, the
            mining area contributed with the growth of 1.3% of the Gross
            Domestic Product (GDP) during the year 2008 in making a direct
            investment worth 2.116 million dollars. From this figure, 5% was       	
            destined towards precious metal exploration projects, which
            constitutes an investment of about 106 million dollars altogether,
            figure in which the contribution of AngloGold Ashanti Colombia
            has been quite significant.

	On the issue of tax contribution, AngloGold Ashanti Colombia paid
  over 3.900 million dollars during the previous year in Colombia. Due             	
  to the suspension of the mining project of La Colosa, the nation
  did not receive revenue and other benefits, such as the hiring of                	
  over 400 employees in Cajamarca, on behalf of tax contribution
  issues. In this same way, we perceive that in a municipality like this
  one, where the unemployment figures is close to 20% -according
  to the National Home Survey-, the project of La Colosa strongly
  contributes to reducing the number of unoccupied members of
  the communities.

	           The challenge that we have as a company, is then, how to be able
            to communicate these positive impacts and to be able to show
            that AngloGold Ashanti Colombia is indeed an ally in the local,
            regional, and national development.                                    	

	OTHER CHALLENGES IN THE SUSTAINABILITY CONTEXT

	           The policy of AngloGold Ashanti Colombia has been to work              	
            closely with the public area of the country. For this reason, one of
            the initiatives of the company has been to support the activity of
            the Ministry of Mining and Energy, Colombia Minera: Desarrollo
            Responsable, Mining Colombia: Responsible Development. The
            challenge posed to the company, on behalf of the Ministry, is to
            continue with the positive image promoted by the mining area
            with its social and economic growth, tax contribution, and its
            effective and proper involvement with the environment, which is
            one of the goals of this initiative.
                                                                                   	
	           In order to respond to this challenge, AngloGold Ashanti Colombia
            has designed environmental, economic, and social risk maps,
            and has been aware and watchful over the implementation of
            international standards that the company holds, as may be
            observed in a detailed manner in the Report.

	           The biggest challenge that we have as a company is to achieve
            an extracting development project, in order to prove, in a
            blunt and definite manner, that AngloGold Ashanti Colombia
            is concerned about sustainable development, that the mining
            activity is indeed compatible with the environment, and that the
company is a good ally for the bettering of the quality of life of
the communities where it operates.

We just hope that in the next report this reality shows itself closer
to our dream, so that we may not pose intentions, but that we
may report indicators that come from productive activities, where
we may reveal the policies in action and development that prove
the bettering in the living conditions of the communities where
we operate.

ABOUT THE CONTENTS OF THE REPORT

This Report has been designed, as I already expressed, keeping
in mind the parameters of Global Reporting Initiative (GRI), G3
version. As required by GRI, we have designated that it is a type
B report, as we have concluded the majority of the indicators that
are included in these requirements, but have some aspects yet to
cover, due to the fact that the company does not have projects in
the advanced stages of the mining cycle. In addition to this, the
company has not solicited external verification for this first Report,
but commits to solicit such verification for the report in the year
2009.

In the same manner, we have kept into account the Principles of
the Global Pact of the United Nations and the Principles of the
International Council on Mining and Metals (ICMM).

Not all the information on the economic, social, and environmental
development of AngloGold Ashanti Colombia is included in this
Report, therefore those who wish to have more detailed information
about the company, about its politics and corporate values, as well
as its operations around the world, they may consult the official
web site of the company, www.anglogoldashanti.com, where
they may find all our reports, advances, and other pertinent key
documents that allow the comprehension of the operations of the
company.

I just hope that the readers of this Report find themselves satisfied
in their expectations, and that they find in this document an
opportunity to know us better, and to establish a relationship of
mutual benefit.




                                                         Rafael Herz
                                                           President
Outcomes of the Report
As it had been estimated, during the year 2008, the
strategy was developed during the main moments
known as Design and Implementation.
In this Report, we will describe in detail the outcomes
of the Strategy of Corporate Responsibility in every
one of the different areas.
Hispanic Architecture in Honda,. Tolima.




48
Report to society 2008




Economicperformance
Economic
                                             Performance


          economic performance

                                                                                   *2008                  *2007
          Personnel (1)                                                        36.238.675             16.734.387
          Wages (2)                                                            23.677.272             14.011.589
          Taxes                                                                 3.949.860              2.633.188
          Leasing                                                               7.338.880              4.094.792
          Contributions and Affiliations                                          191.717                 73.569
          Insurance                                                               803.902                522.557
          Services (3)                                                         68.116.122             38.847.437
          Legal Expenses (4)                                                   27.108.369             10.971.737
          Manteinance and Repairs                                                 404.875                278.893
          Adaptation and Assembly                                                 751.990                497.328
          Travel Allowance                                                     10.785.742              5.919.842
          Depreciation                                                          1.698.297                959.608
          Loss in Sales and Goods Retrieve                                         59.091                 11.924
          Miscellaneous (5)                                                    21.969.234             11.202.641
          Software                                                                134.722                107.112
          Licences                                                                833.087                671.712
          Inflation Adjustments                                                 1.560.770              1.560.770
          Deferred Monetary Correction                                          1.483.316              1.481.321

          Total                                                               207.105.921            110.580.407

         * Totals are included in thousands of millions of Colombian pesos.



	        AngloGold Ashanti Colombia is a company in an exploratory stage, reason for which all the
         expenditures in the table and all the constitution expenses, as well, are counted as deferred
         expenses.

	        As the table shows, in the year 2008, the company invested in Colombia over $2.07 billion pesos,
         generationg taxes for almost $4 billion pesos. This level of investment was affected due to the fact that
         the project of La Colosa was suspended. Should the circumstances have been otherwise given, the
         level of investment would have been considerably higher, therefore, the direct economic impact for tax
         contribution as well as local labor and services hired in the region would have been much higher.

	        In spite of facing the described situation, AngloGold Ashanti Colombia is convinced that there are
         opportunities to develop its operations in this country. For this reason, the company continued its
         program of exploration in a more intensive way, which can be seen in the personnel expenditures that
         were increased in $19.530 billion pesos, changing from $16.700 billion to $36.230 billion Colombian
         pesos, in the year 2008.

	        This investment on local handwork is important not only because it benefitted the workers directly,
         but it also brought benefit to their families due to the tax contributions to social security were $6.469
         million pesos, which allowed thea ccess to Health care services for those worker’s family members
         hired by AngloGold Ashanti Colombia.

    50
Report to society 2008




                                                                                           2008                      2007
                                                                                                      (thousands of pesos)

     Wages, Whole Salary, Transport Wages                                           20.220.783                 9.482.510
     Fringe Benefits                                                                 4.543.278                 1.817.618
     Bonuses and Indemnization                                                       2.230.403                 1.376.212
     Social Security                                                                 6.469.017                 2.854.528
     Others                                                                          2.775.194                 1.203.519


     Total                                                                          36.238.675                16.734.387




	   Deepening into the salary issues, the company found that the standard minimum wage in the
    regions where AngloGold Ashanti Colombia develops its exploration projects is four hundred and
    sixty one thousand five hundred pesos ($461.500). However, the minimum wage for a worker in
    AngloGold Ashanti Colombia accures is equivalent to eight hundred two thousand and five hundred
    pesos ($802.500), which represents a difference of three hundred and forty-one pesos ($341.000).
    This difference in the salary, which could very well seem quite insignificant for some, is important
    for the people from these regions and, that is why the company trains the employers on personal
    finance management.




                                                         Dusk in the South of the Department of Bolívar. Río Viejo, Bolívar.
Our collaborators: Our most valuable resource.




	        In adition to this, AngloGold Ashanti Colombia has a policy by which it gives priviledge to the local
         suppliers where the company operates its projects. Thus, in the year 2008, suppliers of goods
         and services received income of $16467 million Colombian pesos. This way, the company not
         only generates direct employment, but it is also a source of indirect employment to benefit those
         groups in its value chain, allowing them to increase their market and receive higher income and
         opportunities.



         Pay to local suppliers


                                                                                                                   2008
                                                                                                    (thousands of pesos)

         Purchase of field consumable products                                                               4.880.106
         Casinos and restaurants                                                                             2.792.542
         Utility and cafeteria supplies                                                                      1.865.743
         Paper shop and copy center materials                                                                1.073.015
         Taxicabs, buses, and transport expeditures                                                             654.309
         Fuels and lubricants                                                                                   595.944
         Others                                                                                              4.605.839



         Total                                                                                              16.467.498




    52
Report to society 2008




	      Besides the economic benefits generated through the employment of local handwork and suppliers,
       the company invest on social work per se, trying to improve living conditions in the communities
       of the region where the company operates its projects. In the year 2008, investment destined for
       communities was higher than $539 million pesos, distributed in each one of the lines of social
       intervention, and it was proportionally equivalent in distribution to the stage of mining cycle in which
       the projects of exploration are that AngloGold Ashanti Colombia develops. The investment was
       divided in the following way:

        Line                                                                                    (thousands of pesos)



                                La Sierra        Río Dulce         Salvajina       La Colosa                  Total
        Governability        $ 23.745.032      $ 2.136.000      $ 41.011.000    $ 329.359.012       $ 396.251.044
        Economic
                             $ 10.125.000      $ 1.400.000      $ 16.800.000     $ 91.538.472       $ 119.863.472
        Development
        Environmental
                                      $0         $ 625.000               $0      $ 22.435.900         $ 23.060.900
        Care


        Total                $ 33.870.032      $ 4.161.000      $ 57.811.000    $ 443.333.384       $ 539.175.416




     Besides the economic benefits generated

    through the employment of local handwork

         and suppliers, the company invest on

     social work per se, trying to improve living

    conditions in the communities of the region

     where the company operates its projects.
                                                                                                                       In a chart the logging data is collected. San José del Nus, Antioquia.
attendingto
      Health and the Safety of the People




54
Report to society 2008
Attending
                                  to Health and the Safety of the People




                                                 The interest for safety is our most important value: La Colosa, Cajamarca, Tolima.




	        In the Declaration of Values at AngloGold Ashanti Colombia, it is asserted that safety is its
         primary value, which means that the prime value is related with the safety and health of its
         employees.

	        The company has a policy of occupational health and safety oriented towards caring after
         the wellbeing of the workers, this through a permanent assessment upon risks and hazards
         that a committee specialized in occupational health and safety runs. This program allows the
         committee to educate and train the personnel in matters related to prevention of accidents in
         the workplace, and occupational illnesses.

	        During the year 2008, the bureau of Industrial Health and Occupational Health (SISO) ran an
         exercise in hazard analysis in the Bogotá offices and in the site of the project of La Colosa. The
         risks that were identified are the following:

                                                                                            Electrical accidents

                                                                                            Traffic accidents

                                                                                            Aerial accidents

                                                                                            Mechanical accidents

                                                                                            Fire / Explosions

                                                                                            Volcanic explosions

                                                                                            Earthquakes

                                                                                            Overflows

                                                                                            Floods

                                                                                            Civil disobedience

                                                                                            Direct violence
    56
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	    Based upon these results an emergency plan was designed by the company, and brigades were
     designated both in Bogotá and at the site in La Colosa, Cajamarca. On a monthly basis, the
     people on the brigade take 10 hours of training and run drills.

	    In addition to this, the company runs medical assistance days in order to promote weight control,
     and the importance of physical activity, as well as promoting days for vaccination against illnesses
     such as influenza, in order to prevent this type of infectious diseases during times in which they
     appear amidst the population of the region, in general terms.

	    During the year 2008, cases for leave of absence equivalent to 546 days were reported. The
     main cause was the reference of ill respiratory conditions, reason for which, as it has been
     stated previously, days were destined for vaccination. For those workers dedicated to activities
     of prospection, the main cause for leaves of absence was the presence of tendinitis and knee
     related disorders. Only on the site of La Colosa some accidents were experimented due to soil
     conditions- that favor falls and slips- and the poor manipulation of tools. The total number of
     registered cases was of 953 events.

	    This concern for health and safety of the employees is also projected towards the community.
     Hence, in the year 2008, the company contributed along with the Municipality’s Mayor’s Office
     and the local hospital towards the purchasing of the ambulance for the Hospital de Cajamarca,
     destined to transport the ill and the injured from distant locations to the hospital, due to the fact
     that the hospital did not have a means of transport of its own that was adequate to cover the
     needs of the rural area.




                                                                                                             We follow a permanent risk assessment in our concern for the safety of our
                                                                                                             collaborators. Project site, La Colosa, Cajamarca, Tolima.




          This concern for health

    and safety of the employees

       is also projected towards

                      the community.
We follow a permanent risk assessment in our concern for the safety of
our collaborators. Project site, La Colosa, Cajamarca, Tolima.




58
Report to society 2008




workingconditions
Working
                               conditions



	        For AngloGold Ashanti Colombia, one of its main groups of interest is conformed its collaborators.
         For this reason, in the Declaration of Values, it is stated that everyone is to betreated with dignity and
         respect. For AngloGold Ashanti Colombia, honoring Human Rights for employees is a basic principle
         of its working conditions, generating employment that dignifies and satisfies people’s necessities.




    60
Report to society 2008




	In the year 2008, the company had 800 Colombian employees, all of them coming from the areas
  where the development projects took place:


                               TOTAL NUMBER OF EMPLOYEES DESCRIBED BY GENDER AND REGION

              Region                                             Total Number             Male        Female

              Bogotá                                                      70                34              36

              Antioquia                                                  182               161              21

              Boyacá                                                       9                 9               -

              C. Nacional                                                 68                52              16

              Caldas                                                      21                21               -

              Cauca                                                       16                14               2

              Chocó                                                       23                23               -

              Cundinamarca                                                58                51               6

              Florencia                                                   14                14               -

              Huila                                                       20                20               -

              Magdalena                                                   17                17               -

              Nariño                                                      12                12               -

              Putumayo                                                    66                66               -

              Santander                                                    9                 9               -

              Sur de Bolívar                                              30                30               -

              Tolima                                                     174               149              24

              Valle                                                       10                 9               2

              Vichada                                                      1                 1               -



              Total                                                      800               692             107




	Given the nature of this economic activity, most of the workers are men (692), representing the
  87% of the total population, while women (107) represent the 13% of the total difference. This
  situation influences the salary difference. Male workers receive higher income than women, due to
  the fact that their posts are located at a higher hierarchical level inside the company, as shown in the
  following table:
SALARY OF MEN IN COMPARISSON TO SALARY OF WOMEN,
                                     DESCRIBED BY PROFESSIONAL CATEGORY


     Education level                                                 Gender        Salary Average
                                                                                  (thousands of pesos)

                                                                     Female                 802.500
     Primary Basic Education
                                                                       Male                 802.500
                                                                     Female               5.623.667
     Business Administration
                                                                       Male               5.961.960
     Financial Management                                              Male               5.340.000
     Airline Management                                              Female               3.103.000
                                                                     Female               1.660.000
     High School Education
                                                                       Male               2.592.667
     Marine Biology                                                    Male               4.953.000
                                                                     Female               4.659.500
     Social Communication
                                                                       Male               4.953.000
     Technical Accountant                                              Male               5.378.000
                                                                     Female               4.277.571
     Public Accounting
                                                                       Male               6.083.500
                                                                     Female               7.283.964
     Law
                                                                       Male               4.700.000
     Ecology                                                           Male               6.600.000
     Economy                                                           Male               8.267.000
                                                                     Female               4.689.222
     Geology
                                                                       Male               7.282.116
     Environmental Engineering and Natural Resources                   Male               4.651.000
     Mining and Environmental Engineering                              Male              23.334.000
                                                                     Female               6.105.000
     Systems Engineering
                                                                       Male               3.693.500
     Industrial Engineering                                            Male               5.153.500
     Mechanical Engineering                                            Male              27.277.000
     Sanitary and Environmental Enginnering                          Female               6.033.000
     Geodesy and Cartography Engineering                               Male               6.833.333
     Civil Engineering                                                 Male               7.430.000

     Design Engineering and Electronic Automation                    Female               8.992.000

     Mining Engineering                                                Male               5.414.167
     Modern Languages                                                Female               1.616.000
     Linguistics and Literature                                      Female               4.953.000
     Medicine                                                          Male              10.614.000
     Internatonal Business                                           Female               4.000.000
     Politology                                                      Female               4.000.000
     Professional in Military Sciences                                 Male              11.008.000
     Professional in Occupational Health                             Female               4.600.000
     Psychology                                                      Female               5.807.750
     Technician in Exploration                                         Male               1.987.500
                                                                     Female               2.066.000
     Systems Technician
                                                                       Male               5.973.000
     Technical Bilingual Secretariat                                 Female               3.000.000
     Environmental Tecnologist                                       Female               3.769.000
     Business Management Technology                                  Female               4.600.000


62
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Informe gri 2008 ingles

  • 1. Report to society 2008 2008 Report to Society Colombia, a country to be explored
  • 2. 2
  • 4. AngloGold Ashanti Limited Mark Cutifani chief executive officer AngloGold Ashanti Américas Ron Largent executive vice president americas Steve Botts vice president sustainability americas Chris Lodder exploration manager americas Rubén Padilla exploration director americas AngloGold Ashanti Colombia S.A. Rafael Herz president Ramiro Santa corporate affairs vice president Klaus Rorhbach financial administration director Carl Brechtel project director, la colosa Edwin Palacio exploration director Iván Matamoros safety director Josefina Araújo legal issues director David Riaño human resources director Luisa Fernanda Aramburo adjunct director of concession and mining proposals Carlos Moncada financial and planning adjunct director Aurelio Ganoza project operations manager, la colosa Luis Mario Acosta environmental manager Álvaro José Mendoza occupation, health and industrial safety manager Pablo Piombi information technology manager Emigdio Aguilera financial manager Carolina Rueda social development and communications manager Ramón Hernández property, land value, and real estate issues manager Mauricio Caldas logistics manager Érika Murcia contracting and hiring and societary affairs manager Elaboration of the Report and Consultation to the Groups of Interest portex acción para la reputación Design, Layout, and Printing gatos gemelos comunicación Person Responsible of the Report corporate affairs vice presidency anglogold ashanti colombia * All the photographs included in this Report were taken from locations where AngloGold Ashanti has had exploration activities.
  • 7. Presentation 3 Corporate Profile 5 Our Way to Operate: Keeping in Mind the Sustainability Context 18 Corporate Social Responsibility Model 24 Listening to our Groups of Interest/ Consultation 34 A Letter from the President 42 Outcomes of the Report 46 Economic Development 48 Attending to Health and the Safety of the People 54 Working Conditions 58 Human Rights 66 Relations with the Community 72 Environment 82 GRI Content Index 86
  • 9. In the present report, AngloGold Ashanti Colombia reveals the economic, social, and environmental growth it had during the year 2008, answering after the responsibility the company has acquired with the country and its sustainable development. In order to complete this report, diverse interests of different groups were taken into account; Special Interest Groups (SIGs) that were consulted, so that the company could understand their expectations relating the company itself. The information contained within the report is adequate to the contents that AngloGold Ashanti Colombia considers relevant for its diverse SIGs; therefore, the company presents this information in a way that it is clear, in terms that will allow comparisons to be made by those revising the contents, providing precise numbers, thus allowing, in turn, tracking of the data in the place where it was originated. In order to organize the information, the Global Reporting Initiative (G-3) was taken into consideration; in the same way, G-3 is the mining supplement of the company. Some of the indicators of the G-3 do not apply; this, due to the fact that AngloGold Ashanti Colombia has not yet begun any project in Phase 7, which refers to the phase for production. This explains that the environmental elements of this report –fundamental aspect of sustainability- appear under the exploration phase, as explained further later on in the report. As this is the first sustainability report for AngloGold Ashanti Colombia, it can be considered that further annual reports that the company develops will be based on this original model. This, we intend, will allow us to record the evidence of the growth of the company, of its operations, and of the relationship that it has established with its Special Interest Groups. In addition, the report includes the 10 principles of the Global Pact of the United Nations, in which AngloGold Ashanti is active, in the same manner in which the 10 principles of the Sustainable Development Frame1 of the International Council of Mining and Metals (ICMM), for which Anglo Gold Ashanti is a founding member. At the end of the report, a chart will appear. This chart intends to reveal the three mentioned standards in order to make their comprehension easier for the reader. Some of the indicators of the GRI have not been reported, due to the fact that the project had a process of interruption during the year 2008; it is upmost important to remember that the Colosa Project was leader in the company. In order to solve any further question regarding the contents of this report, please do contact the Vice-presidency of Corporate Affairs of AngloGold Ashanti Colombia, responsible for the company in front of the diffusion of the contents and the Sustainability Report. 1. The first 10 Principles were elaborated keeping into account the Global Reporting Initiative, The Declaration of Río, Guidelines of the OCDE (Organization for Economic Co-operation and Development) for Multinational Corporations, Operational Policies of World Bank, Fight Against Corruption Convention of the OCDE, International Labor Organization Conventions 98, 169, and 176, Voluntary Principles on Security and Human Rights. The first 10 Principals may be consulted at http://www.icmm.com
  • 10. Monument to the music. Ibagué, Tolima. 10
  • 11. Report to society 2008 CorporateProfile
  • 12. Corporate profile AngloGold Ashanti AngloGold Ashanti is a world class enterprise, leader in the gold production industry, whose offices are headquartered in Johannesburg, South Africa. The conglomerate has 21 mining operations around the world, and a considerable number of exploration programs in acknowledged gold producing areas, as it is recognized in other sites, candidates for precious metal exploitation. The world program for world exploration of AngloGold Ashanti continues to gain territory, particularly in Colombia. The activities of the exploration site are fulfilled directly with the group, or in collaboration with partners or associates who hold a shared risk. The company has a main office for exploration sites and new businesses of AngloGold Ashanti Limited for the Americas, located in the city of Bogotá, from where all projects are coordinated and administered. In Colombia, there are several exploration projects at present, two of which are at an advanced level: Gramalote and La Colosa, both located in the center of the country, and other projects which stand at an initial stage. COLOMBIA, A COUNTRY TO BE EXPLORED (ANGLOGOLD ASHANTI COLOMBIA) AngloGold Ashanti Colombia develops a mining project that is responsible with the environment and with society; a project that is oriented towards corporate values and aligned with the highest international standards such as Global Pact of the United Nations and the Volunteer Principles in Safety and Human Rights. In Colombia, tasks towards the revision of the cartography and prospective since 1999, in alliance with other companies were initiated. Since the year 2003, it began operating under the name of Sociedad Kedahda, Kedahda Associates and, since the year 2003, it acquired its new and current name AngloGold Ashanti Colombia. Between the years of 2003 and 2004, the company has developed an exploration program that has covered 8.5 hectares, a program destined to the geological generation of high prospective, where 500 hundred sites were acknowledged as sites of interest for the company (geological anomalies). As a part of its politics, seeking to support development, AngloGold Ashanti locally acquires the products, services, and labor that are required for its projects; thus, contributing to the economic dynamism of the areas where it operates. 12
  • 13. Report to society 2008 Corporate Objectives In order to accomplish its corporate objectives, AngloGold Ashanti Colombia has focused on five main strategies: 1. People are our Business The company offers the leadership and administrative support processes required for the establishment of the appropriate corporate climate in such a way, that every individual is in complete ability and willing to give the best of him or herself. 2. The Growth of the Business The successes of the company, in its exploration processes as well as in corporate growth, compose the construction block which is most important for the future creation of the corporate values. AngloGold Ashanti Colombia seeks values that will accredit its objectives M&M, and new corporate investments that can be built upon main strengths, generating additional roads that lead towards development. 3. Administering the Business as an Asset Portfolio AngloGold Ashanti Colombia, aware that capital can be a limited resource, has decided to use it wisely, guarantying that its strategy has such coverage that it may benefit the business opportunities. At the same time, it is consequent with the tasks that it must implement in order to reach the highest potential. This is the reason for it to sell assets that are not relevant, assuring that operations may revive themselves that are close to their purpose, thus allowing new growth opportunities to arise. 4. Maximize Margins The company administers its margins of income and costs in order to insure the coverage and the protection of devolutions according to the cycle of pricing. Currently, it is assembling a new corporate framework in order to strengthen this maximizing process as well as strengthening the practice of reaching high quality levels, which is a constant in all processes, all in the purpose of bettering and sustaining the creation of value. 5. Deliver Sustainable Outcomes Safety and Health are the most important values for the company; these values represent the company’s commitment towards the people of the community because they reflect their well being. The company has responsibilities that are important in the behavior towards the environment and the construction of community relationships, political and institutional relationships, in the hopes of delivering outcomes for mutual benefit, and the creation of sustainable value.
  • 14. OUR VALUES We Treat Eachother We Value Diversity with Dignity and Respect We have an objective: we consider We strongly believe that individuals who are treated that being a global leader with people with due respect, and to whom responsibility is who are adequate and with the granted as a part of this principle, are bound to adequate tasks, is fundamental. We respond with great enthusiasm. We are honest promote inclusion and work teams, to ourselves and with others, and we give ethical thus obtaining benefits from the riches treatment to all our social and corporate associates. of the cultural diversity, of the varied We seek to preserve the dignity of people in all our ideas, experiences, and talents that actions and relationships; we respect people for who every employee contributes to the they are; and we value the contribution that each business. individual can provide, so that our business can be truly successful. Safety is our Main Value We place people first, and in the same manner, we keep safety and health practices in the same regard within the work systems of the company. We are responsible for seeking to find new and innovative ways to assure that our workplaces are free of accident causing elements that may cause injuries and occupational illnesses. We live every day as a full experience; we live for one another, in our commitments, our talents, our resources, and our collective systems, so that we can guarantee our most important value: Safety. 14
  • 15. Report to society 2008 We Respect the Environment We are Responsible for our Actions and We have committed to better on a We Acknowledge the Fulfillment of the permanent basis all our processes, Totality of our Commitments thus avoiding contamination, minimizing We are focused on delivering outcomes, waste, raising the efficiency of our thus we do what we intend and announce carbon, and making appropriate use to do. We acknowledge our commitments, of our natural resources. We seek to and we are responsible for our work, our develop innovative solutions in order behavior, our ethics, and our actions. We to mitigate the environmental risks, project our outcomes of high profitability, thus having a positive impact on our and we assume the accomplishment of atmosphere. our commitments with our colleagues, our associates, our social and corporate associates, as well as our investors. The Communities and Societies where We Operate will be Benefited Due to the Presence of Anglogold Ashanti We support and promote human rights where we work. We contribute in the construction of productive alliances with the communities where we operate. We seek to leave a better future within the communities.
  • 16. GOVERNANCE The exercise of corporate governance at AngloGold Ashanti Colombia is responsibility of the team of directors, as a whole, under the leadership of the President of the company. This organ makes decisions regarding the atmosphere of operations of the company in Colombia. The decisions are validated at a Board Meeting and with the headquarters in South Africa. The criteria for orientation are the directors of corporate governance at AngloGold Ashanti, as are the Ethics Code of the company, the Business Principles, the Politics and legal framework documents of the company (the Code for good governance and general guidelines are available for consultation at the website: http://www.anglogoldashanti.com/ About/Corporate+Governance/Guidelines.htm). For the adequate development of its operations, during the time for which this report was being completed (2008), the company had the following organization chart: AngloGold Ashanti Colombia worked on restructuring of the company during the year 2009, which was not incorporated in the present report and will be reflected on the Sustainability Report of the following period. This understood, Mr. Chris Lodder, who appears as the President for this period, was designated as Exploration Director for the Americas, and Rafael Herz joined AngloGold Ashanti Colombia as President. President 16
  • 17. Report to society 2008 Legal Issues Director Financial Administration Director Human Resources Director Social Development Manager Vice President of Public Affairs Safety Director Exploration Director Environmental Issues Director Information Technology and Database Director
  • 18. Geologists trace the paths in the map. Jericó, Antioquia. 18
  • 19. Report to society 2008 ourwaytooperate Keeping In Mind The Sustainability Context
  • 20. Our Way to Operate: Keeping in Mind the Sustainability Context AngloGold Ashanti For AngloGold Ashanti Colombia, the cycle of production of gold has eight phases in which the perspective of sustainable development is always a priority, as it is fundamental to acknowledge the permanent closeness to the communities that inhabit the areas where the company operates. For this reason, each one of these phases, the challenge that sustainability establishes for the development of the business. Phase 5 Phase 4 Feasibility Prefeasibility Phase 6 Phase 3 Constructions and Staging Perforation of the Mining Site Phase 7 Phase 2 Production Detailed analysis of rocks and soils Phase 8 Phase 1 Mining Closure Area Acknowledgement and Postclosure and Sampling 20
  • 21. Report to society 2008 Phase 1 Acknowledgment of the Area and Sampling (1 to 2 years) An acknowledgement of the area is made, to facilitate sampling of sediments and geographical cartography at a regional scale. Phase 3 Challenges: Previous to initiating the activities of prospecting, a dialogue is Perforation (1 to 3 years) established with the community in the framework of human rights. Perforations are made in order to revise and validate the geological concepts established previously in phase 2. If perforations are geologically successful, levels of metal concentration are tested in a specific amount of rocks, what is technically known as “Recursos Inferidos”, “Inferred Resources”. Challenges: Given the fact that it is during this phase that labor is sought in an intense manner, the company deliberately hires workers from the area where the perforation is being performed, and dignifying conditions in terms of health and safety are analyzed with the worker’s assessment in order to establish honorable conditions for work and to maintain excellency in these aspects. Detailed Analysis of Rocks and Phase 2 Soil (2 to 3 years)) The detailed geological cartography is completed. Challenges: During this phase, several encounters are accomplished with the communities in order to acquire a social baseline that can allow the social, political, economic, environmental, and cultural characteristics to be identified in the area.
  • 22. Phase 4 Prefeasibility (1 to 3 years) During this phase perforations and more detailed metallurgic studies are completed in order to overcome the Inferred Resources (outcome of the analysis of mineral presence in the nuclei present in the perforation studies) to Adequate Resources, which define the accurate amount of metal that the rocks contain. Feasible technical, operational, environmental, financial, and social scenarios are proposed as well. Challenges: Aside from maintaining standards of health and safety for workers, the company maintains a policy of efficient use of resources- water, light, and other natural resources-, with the intent to minimize the maximum the trace of carbon, and to continue the implementation of the plan for social management. Phase 5 Feasibility (1 to 2 years) During this phase, the feasibility of the different scenarios presented during phase 4 are analyzed (environmental, social, financial, and technical) and perforations are developed with smaller centers, dug at 154 feet, to establish which percentage of the probable reserves may really be exploited. In addition to this, pilot metallurgic tests are run in order to determine the percentage of the metal that can actually be recovered from the rock. At this stage, the estimate is produced, hence allowing the financial and human resources to be determined, the same resources that will be required in the construction and operation of the future gold mine. Challenges: The social, economic, and environmental map are updated in order to determine the actions and the plans to be followed; plans that contribute in the bettering the local conditions of the community where the mine is being operated. Phase 6 Construction and Staging of the Mining Site (1 to 3 years) During this phase, the infrastructure that is required for the production of the mine. Challenges: The main challenge for the sustainability in this stage is the strengthening of the economic facet of the region; this facet is fundamental in order to make the mining operation one that promotes local development rather than turning into a local economic competition for the region. In addition, biodiversity must be cared after, as must be the training of the people of the region, so that the work posts at the mining site may be fulfilled; the local people are not prepared to fulfill the requirements, therefore, public and private alliances are made in order to complete the training programs. 22
  • 23. Report to society 2008 Phase 7 Production (10 to 20 years) This phase is dedicated to the production of the mining project, hence accomplishing the commitment of the sustainable production compatible with the environment and society. Challenges: To make the operation compatible with the environment by using the highest standards in the development of this activity, thus guaranteeing the adequate usage of natural resources and promoting the care of the health of the workers and of the inhabitants who are close to the project. The strengthening of the social and institutional capital is also a priority for the company, supporting the surveillance of the resources from the tax contributions and royalty. Mining Closure and Post closure (1 to 3 years) Once the exploitation phase is finished, the social and environmental commitment of the company continues Phase 8 providing rehabilitation of the areas that were intervened by the mining project, and developing processes that may guarantee the social, economic, and environmental sustainability of the area. Challenges: The main challenge in this phase is to continue nurturing the relationship with the people of the community, so that the sustainability projects designed and proposed during the previous phases may be concluded successfully, even if the company is no longer operating the mine. It is a priority for the company to be able to guarantee that the area where the operation was developed is in similar or better conditions than when it was intervened by the project.
  • 24. indigenous group member Sierra Nevada de Santa Marta, Magda- 24
  • 25. Report to society 2008 corporatesocial responsibility model
  • 26. Corporate Social responsibility model During the second semester of the year 2007, an internal and external diagnosis was developed within the corporate social responsibility model in order to identify corporate social responsibility policies, procedures, programs, and practices RSE in relation to the groups of interests, and in order to define the baseline for the development of the strategy of reputation for its operations in Colombia. This diagnosis was the first of three planned cores which include the design and implementation of a Reputation Strategy (which began in the year 2008), and an exercise in rendering accounts through a Sustainability Report in the year 2009. 2007 2008 - 2010 2009 2007 2008 - 2010 2009 measuring diagnosis strategy and report internal external design implemeNtation indicators and report The purpose of the diagnosis was to find empirical evidence to support a integral strategy of reputation that combined social corporate responsibility with corporate communication. The findings of this research allowed the design of the strategy including and taking into account international standards like the G3 format of the Global Reporting Initiative (GRI), Global Compact Principles and the guidelines of The Voluntary Principles on Human Rights. The investigation, in general terms, generated the following steps: METHODOLOGY An exploratory-descriptive methodology was implemented, which sought to specify the significant perceptions about social representations amongst groups of interest regarding AngloGold Ashanti Colombia. The process was carried out using three investigation techniques • Demi-structured Interview with specific people and strategies, both inside and outside of the company. • Data Analysis based on the revision of formal and non-formal documentation from each area of the organization. • Direct Observation. Through which, data was collected from outside, this done by observing behavior without interacting with the participants or social groups 26
  • 27. Report to society 2008 DESCRIPTION OF THE PROCESS The investigation was formed by an internal and external characterization. The first of the two included revision of the documentation collected previously, as well as interviews to the board of directors and to the people responsible for the social responsiblity processes and policies RSE of the company. The second characterization included interviews made to the representatives of the significant groups of interest, identified during the internal characterization- an observation of the operation environment and the company performance in it- a data analysis of documents and results according to international standards of reference. The following activities were carried out during the investigation process: Stage 1- Internal Characterization • Data and Documentation Analysis. Formal and non-formal documentation data from different areas was reviewed to guide the management of the company. They were analyzed based on the fundamental international principles chosen for this particular study (GRI, Global Compact, and Voluntary Principles) • Interviews to Employees. 12 interviews were carried out with the head of departments, programs and projects of the company.  Stage 2- External Characterization • Visited Municipalities. The regions of interest for Anglogold Ashanti Colombia (AGAC) were visited in order to carry out different activities, such as interviews with key informants, as well as observation and collection of documentation from each one of the municipalities. The regions visited were: Bogotá, Cajamarca in Tolima, Quinchía in Risaralda, and SanRoque in Antioquia. • Interviews. In each municipality the different interest groups were interviewed. The data is summarized in the chart below: the data that appears by region and groups of interest identified, according to the information on each person who was interviewed, can be found in the final document. • Documentation. The data gathered from the analysis of the documentation that was picked up from the different regions during the activities and the development of the plan, revealed the reality, opportunities, and perspectives of the different municipalities where the company operates, with the purpose of studying the context in which CSR is practiced by AGAC. BOGOTá CAJAMARCA QUINCHÍA SAN ROQUE TOTAL Government 3 3 2 3 11 Education Sector - 3 1 1 5 Health Sector - 1 - 2 3 Police Forces - 2 2 1 5 Suppliers 2 1 2 - 5 JAC - 4 3 2 9 Autonomous Regional Corporations - 2 - 1 3 NGOs - 2 2 - 4 Shareholders 1 - - - 1 Mining Sector 1 - 3 3 7 Employees 7 5 2 2 16
  • 28. Results From the investigation and the data analysis, a new strategy of corporative reputation was posed in order to answer to corporate social responsibility issues combined with internal and external corporate communication. The model is formed by three lines of strategy: POSITIONING PERFORMANCE DEVELOPMENT STRATEGY STRATEGY STRATEGY Transformations of Assurance of the Activity of the imaginaries, through an corporate platform corporate citizenship, integral performance on to support the aimed towards behalf of AGAC, for a management of the sustainable proper development of company in order to development of AGAC the Gold Mining Industry achieve the social and its stakeholders. in Colombia. license. Strategy A good neighbor Policies Governability A good ally A good Procedures Environmental Development employer care PERFORMANCE STRATEGY refers to the adoption of standards, procedures, norms, and principles that Anglogold Ashanti compels to assume according to the national gluidelines established by the law, as well as the international ones, withing a corporate social responsibility and human rights framework, seeking for sustainable development. POSITIONING STRATEGY refers to AGAC aim to uphold good interaction with each one of its stakeholders, in a relation of “win-win”: On one hand, the company contributing to the improvement of living conditions of the inhabitants of those interest groups, and on the other hand, allowing those interest groups to run an efficient operation in which the mission goals can be accomplished. To do so, AngloGold Ashanti expects to be: A good employer, who gives priviledge to hiring local labor and services, as well as being an employer who honors workers dignity contributing to their life projects. A Good Neighbor, in other words, a company that supports local development through offering respect towards the communities where we operate, hence becoming an active entity that supports innovative initiatives coming from regional and multi-sectoral areas proposed with the purpose to improve the environment of the zones we operate in. A Good Ally. AngloGold Ashanti Colombia expects to be contributor of the State entitities, both regionally and nationally, by giving its input based on experience to these entities, so that they may apply this transfer this knowledge as one of the criteria in the design of new public policies, or the bettering of existing strategies. 28
  • 29. Report to society 2008 DEVELOPMENT STRATEGY seeks that AngloGold Ashanti Colombia reaches its mission goals in an efficient and successful manner. However, the company is fully aware that it does not operate alone, and that its opertation does affect the surrounding communities. This is the reason for which the company intends for the social groups that are involved grow along with the company’s development projects. The company seeks to become a part of a mining activity that is, in turn, a form of development and dynamism of these social groups in opposition to becoming an activity that promotes competition for an economical status against these regions. This strategy defines three complementary lines of intervention whose aim is the sustainability of the mining activity and the communities: Governability: seeks to increase social and institutional capital of the communities where AngloGold Ashanti Colombia operates. Being aware, as the company is, that one of the greatest positive impacts of the mining activity is the transfer of economic resources to the municipalities and departments through taxes and royalty, it is mandatory that these communities are trained in construction of civil matters and of democratic participation understanding in order to insure that all those resources are destined to improve living conditions in the communities of the region. In the same way, it is necessary to reinforce local authorities, so that they may acquire the criteria and tools needed to elaborate public and institutional policies to support local and regional development, and so that they may find in AngloGold Ashanti Colombia a significant actor, who commited to corporate responsibility compels to comply with standards that answer to these policies and processes. Economic Development. Intends to reinforce the economical vocation of the municipalities where the company operates, making the mining activity an alternative to development of the region, generating ways to improve living conditions in the communities in opposition to becoming an activity that promotes competition for an economical status against these regions. On the other hand, this line of the process intends to generate and strengthen good practices in the production, distribution, and trading process of the products and services that municipalities make and give. This initiative is reached by the support provided towards productive projects, promoting innovation and ongoing assessment programs directed towards improving the economical activities of the inhabitants. This allows people to leave behind an economy which is aimed towards subsisting, and acquiring tools that will allow an sustainable economy to take place, thus generating income and welfare for the people in the regions. Environmental Care. Although AngloGold Ashanti Colombia has a complete area dedicated to watching over the environmental processes that surrounds the mining cycle; the social area of the company is responsible for creating an environmental and sustainable awareness amongst the people from the different municipalities where the company develops the mining activity. The main idea is to promote an ethics approach towards the ecosystem and habitat of the regions where the company operates, and our collaborators are, upholding actions and activities to improve the level of respectfulness towards the environment, thus leaving a legacy for the new generations of a cleaner and better section of this planet, that is livable, and that has better living conditions for all forms of life.
  • 30. OUR WAY TO APPROACH COMMUNITIES In order to interact with the communities, AngloGold Ashanti Colombia has developed a Model of Social Management, in the hopes to systematize experiencies of interventions with collectivities by establishing a guide route, and promoting the participation of the communities through coherent and organized actions. The intention of this Model is to create a route for an initial approach towards the communities, as well as the tracing of actions and performances that derive from this activity. Keeping into account that the development of a human group is, at the outset, a responsibility of its own, the company can provide its own resources, participating as a guiding element that seeks to orient the collectivity in the adequate usage of the resources. However, the private sector cannot takek the place of the community nor may it take the place of the State in this event or in any other. The basic information included in this Model allows a methodology of social intervention to be developed, as well as allowing the company to generate criteria and indicators that would, in turn, allow the development of tracing and monitoring systems and the ongoing assessment of actions and projects that AngloGold Ashanti Colombia carries out in its relation with the communities. Our Social Management Model, in the same manner, is a concensual and participative process with the local authorities as well as with the communities, which works as guide in the implementation of actions from and towards the communities. The Model of Social Management of anglogold Ashanti is the following one: Concertation Expectation alignment . Project, proposal, and initiative definition. Approach Social Participative Diagnosis. Social actors search. Pre-approach Presentation of the company. Social mapping. Data collecting . Re-approach Measurement and assessment. Report rendering. Revision and adjustments. Praxis Project development, proposals, and initiatives. 30
  • 31. Report to society 2008 This bridge over the Magdalena river, brings Mompós and El Banco together. Mompós, Bolívar. The stages of the model are not considered a lineal chain that needs a developed stage to be developed before or after another, rather, it is a model that is understood in a complex manner, this would mean, that they are considered moments of a continous cycle that receives permanent feedback from all the stages. The process can be developed in a consecutive, secuencial, or simultaneous way. The description of all the stages is the following one: Pre-approach: In this first moment, considerations about the place where the company is going to develop its operations are carried out. The idea is for the personnel of the social area to research and recognize the area, through the revision of certain data found in documents, significant information from the place, so that when the company arrives to area, the personnel knows how to reach out to the people and how to present the company in an understandable language for the local people of the region where the exploration project is to take place. Approach: Once the company has had contact with the community where the exploration is carried out, a person from the social area meets the people in charge detected through the previous stage known as Pre-approach of data revision, and who have previously been contacted. With the detailed information, plus the information acquired during the meeting with previously identified social actors, this person produces a brief social diagnosis of the place in order to draw a map that will allow the bettering of the relationship between the company and the community. Concertation: With a basic knowledge of the place –which depends directly of where the mining cycle stage is- the person from the social area arranges appointments and meetings with persons from the community, actors, and social leaders, where the actors present their pretensions, goals, and social interventions of the company. In this same way, the company may listen to the expectations of the community to make decisions on the route to be followed and what kind of intervention may be carried out. Praxis: Through the meetings with the community, and thorugh the agreements upon expectations of both actors, the person form the social area will take action and will develop proposals, and will develop projects according with the three lines of intervention of the Social Strategy of AngloGold Ashanti Colombia. For this intervention to be developed, the projects and actions that are aligned with these three statements (economical development, governability, and environmental care) will be priviledged.
  • 32. Fisherman. Fundación, Magdalena. Re-approach: in the relationship to the community, it is fundamental to develop a tracking or monitoring of this interaction. For this reason, it is necessary to revise the execution of the projects, the development of the action plans, the performance, and the emerging of new expectations of the community, and, in general terms, all the communicational actions that the company directs to the community and viceversa. This process has vital significance to the company for it implies the mutual transformation of imaginaries and social representations which will give way to a clearer and more open relationship between the company and the community. Closure Every stage of social intervention must have a moment of closure that allows the feedback to take place, to adjust, as well as to socialize the process with the social actors involved, and to communicate if the rest of the mining cycle is to be concluded or not. Moreover, the closure allows the company to show gratitude towards the people for authorizing the presence of the company in the region, and for having allowed all the mining activities to be carried out. The Model of Social Management is conscientious and participative, in which both, the local control entities, as well as the very local communities work jointly in order to achieve common goals; this Model guides the implementation of actions towards and from the Reservoir of La Salvajina collects the communities. waters of the waterfall. Suárez, Cauca. 32
  • 33. Report to society 2008 Due to its ample cultural tradition, Ibagué is known as The Musical City of Colombia. Ibagué, Tolima.
  • 34. The economy of the department of Tolima is divided in agricultural, livestock, and mining activities. Espinal, Tolima. 34
  • 35. Report to society 2008 listeningTO our groups of interest / consultation 2009
  • 36. Listening to our groups of interest / consultation 2009 AngloGold Ashanti Colombia is aware that in order to be able to operate, it is mandatory to nourish the relationship with the people of the community or with the groups that are vital to the generation of value for the company. In this relationship, the company generates impacts- real and potential impacts- over other groups, and, simultaneously in turn, it receives effects from them; thus it becomes necessary to recognize and identify them, and once this is accomplished, to determine the most adequate channels by which these relationships can be sustained, in the same manner, the mechanism and the frequency of the encounters and the reciprocal communication. In the exercise of recognition of the interest groups, AngloGold Ashanti Colombia has identified the following: Headquarters Directors Associates Employees Suppliers and Outsourcing Public Entities Civil Society Media and Communications Environment Exploration Projects Mining Area and Other Companies 36
  • 37. Report to society 2008 Given the importance that people have for AngloGold Ashanti Colombia, formal relationships with the community are sustained in a permanent way, through three main mechanisms: the first of the three being the person to person encounters as well as with small groups through the social team that is present in every exploration project. During these meetings, the company is presented to the community; in the same manner, the expectations of the people towards the presence of the company are heard by AngloGold Ashanti Colombia. The second mechanism of the three is the Corsae (Social, Environmental and Corporate Responsibility Committee), a permanent forum of dialogue and encounters, designed and promoted by AngloGold Ashanti Colombia in the areas where the exploration sites are being developed. The Corsae allows the company to rely on the participation of the neighbor community from the earliest phases of the mining cycle. The Committee is formed by individuals or social actors from the public area (local authorities), from the private area (local businessmen, commerce men or merchants, and trade unionists), from the third area (Non Governmental Organizations – NGOs-, civil associations, and foundations), as well as members from the civil society (social leaders, presidents of Community Action Committees, religious leaders, etc.). The Corsae is a privileged space where the company presents itself before the public and the community, and, in turn, recognizes the expectations and concerns that the communities where the mining project operates might have. The third and last mechanism is a strategy of consultation to the community in general terms, for which the company hires specialized outsourcing in this topic, in such a way that they may run research on the perception that communities have respecting AngloGold Ashanti Colombia, their expectations, and the routes of action to be taken in order to better the relationship with the communities. This third mechanism is run through face to face interviews, either individual or at a group level. In the exercise of the mechanism all groups of interest are involved, which grants them with a sensation of being acknowledged and recognized by the company, and that their opinions and expectations are actually taken into account. Aside from the interviews, there are also social surveys run through polls. From this consultation process, AngloGold Ashanti Colombia has identified the following nuclei of perception and expectation towards the company. Sunday Market. Natagaima, Tolima.
  • 38. Headquarters Directives Associates Employees Suppliers and Outsourcing Public Entities 38
  • 39. Report to society 2008 The directives and the shareholders see in AngloGold Ashanti Colombia in a consolidation stage, which, as it carries out production processes in Colombia, may contribute to the development of the country and to the production of profit for the company and, therefore, for the shareholders. During the first consultation, the perception of the headquarters was optimistic due to the investment opportunities available for Colombia and for the potential gold resources identified. During the second consultation, the perspective was less optimistic due to the difficulties that the company has encountered, in terms of what judicial safety is concerned, to provide permanence to the exploration programs. Hence, the expectations are centered in clear criteria that may allow the company to give continuity to the exploration processes and the mineral production processes, in order to assure the investment programmed for the country, and to increase such investment, all from the scenario of safety judicial guarantees that will permit the company to run its operations. They perceive AngloGold Ashanti Colombia as a company that has gained national identity and that, given its financial strength and its mission objectives, which could very well be an important factor for the development of the country and the communities in which the company develops its projects. The expectations are centered, as are the shareholders, in that the company may operate furthermore within the Colombian territory, not merely doing so in exploration processes, but also in gold production processes. Aside from this, the directives have the expectation that the company may be acknowledged as a responsible company, that complies- and goes beyond this point- with the highest standards in economic, social, and environmental demands, as it contributes to the development of the country. The mining companies, with which AngloGold Ashanti Colombia develops exploration projects through joint ventures, perceive AngloGold Ashanti Colombia as a reliable company, one that strategic alliances for foreign investment may be conducted due to its financial sturdiness and its ethics standards and social responsibility which guarantee that the company will indeed comply with the commitments that it has acquired. The expectation is that the company may generate profit in Colombia, thus continuing to perform a win-win operation, and, as a consequence, contributing to the economic development for the country. The employees perceive AngloGold Ashanti Colombia as a company that runs permanent ongoing improvement processes; perceived as a company that is concerned with creating and promoting a sense of identity amongst its employees through diffusion of its corporate values and the active leadership of its directors. The expectations of the collaborators is that the company improves its internal communication processes in order to achieve a better internalization of the corporate values, and that AngloGold Ashanti Colombia may continue to operate in the country, for they consider this to be a great place to work at. They perceive AngloGold Ashanti Colombia as a company that is concerned with the fulfillment of legal, social, and environmental standards in the completion of joint ventures; also, AngloGold Ashanti Colombia is perceived as a company that has contributed in the formalization of some suppliers and their processes- mostly, those local suppliers where the company holds exploration projects-. In this sense, the company is responsible in delivering checks that present no delay with the goods and services that it has outsourced, as it is also responsible in offering a fair price in these negotiations. The expectation- particularly of the local suppliers- is that the company continues in the region and that it continues to provide training in tributary issues, commercial management, and productive chains, because they consider that this is a great way to increase their income, for they stop being exclusive suppliers for AngloGold Ashanti Colombia to be able to offer their goods and services to other organizations, thus having other opportunities for growth and revenue. The public entities, those that are local as well as the ones that are regional and national, perceive AngloGold Ashanti Colombia as a company that has come to the country with intent to invest. Aside from this, it is perceived as a company that complies with legal standards, therefore, it is perceived as being responsible with the Colombian legislation. Some mayors, deputies, representatives, and senators allegedly see in AngloGold Ashanti Colombia a multinational company that, as many foreign companies, are merely seeking to gain revenue without the intent of true development for the country. The expectations of the authorities that do have a positive perception of the company are that it may, indeed, continue its operations in the country, thus providing income for the State through the tax contribution and royalty. In the same way, with its presence, that it may contribute in the employment generation process and with the appropriate communication in the whereabouts of its accomplishments in the standards of social and environmental responsibility. The expectations of the public entities that have a negative perception of AngloGold Ashanti Colombia is that the Colombian State regulate the company with higher rigor or severity and that it may limit its possibility to operate.
  • 40. Civil Society Media and Communications Environment Mining Area and Other Companies 40
  • 41. Report to society 2008 In the communities that were consulted the perception is that AngloGold Ashanti Colombia is one of the biggest mining companies in the world due to its foreign capital. Most of the people possess a positive opinion about the company, for they know the way that the company operates, so they consider that the company operates in a responsible way, taking into account the concerns of the communities. Some social organizations and local community members have a negative perception of the company, this is based more on the fear that the company’s actions may be detrimental to the environment and that the State may not have the adequate tools to mitigate or assume the negative consequences of the company’s damage. The main expectation of the communities is that AngloGold Ashanti Colombia complies with the legal standards surrounding the environmental issues in those possible sites where gold may be produced. A second expectation is that the company does generate employment in the communities, thus contributing to the local development The journalists who work for AngloGold Ashanti Colombia perceive the company as a solid organization in its financial area, as a company that is responsible of the law, and as a company that holds relationships with the media based on respect. Aside from this, they feel that it is prompt to respond to concerns that the journalists may have. Some of the local journalists- particularly in the case of the city of Ibagué- perceive mining as dangerous, and consign the need to learn about the development of the is activity with standards that will allow it to be responsible with the environment and with society. The expectation of the journalists- and leaders of opinion- is that AngloGold Ashanti Colombia may be accessible when it comes to offering information about its processes, and that it may answer the concerns of the media -in the name of society- when the journalists may pose them. The environmental organizations consulted may be classified in two types or groups: The first of the two types of organizations are the ones that support mining activities that are run in a responsible manner, with the preservation of the environment as a principle. And there are those types of organizations that do not support the mining activity, because they consider it to be a hazard towards the environment and that, therefore, ought to be forbidden to operate. The expectations of the second group are that AngloGold Ashanti Colombia leave the country and that it does not operate in it. On the other hand, environmental organizations that are less fundamentalist hope to see AngloGold Ashanti Colombia operate in order to demonstrate to the country that the great ore mining activity is indeed a responsible one towards the environment, due to the high standards of environmental responsibility in the operations that it develops abroad The extractive industries of the country perceive AngloGold Ashanti Colombia as a serious, solid, and social and environmentally responsible company. Likewise, they believe AngloGold Ashanti Colombia can become a leader in the processes of gold production in a technically responsible manner. The main expectation towards AngloGold Ashanti Colombia is that it promotes processes of education and information diffusion that may allow a transformation of the social imaginary that poses mining as an evil process, damaging to the environment, and that it only generates revenue to the owners of the business, while it impoverishes the communities.
  • 42. 42
  • 43. A Letter from the President In the name of AngloGold Ashanti Colombia, it is a pleasure for me to render the first Sustainability Report that the company has devised in order to present its economic, social, and environmental development during the year 2008. It is right to assure that the headquarters has been compiling a social annual report with the parameters of the Global Reporting Initiative since the year 2003, for the case of Colombia, this is a milestone, due to the fact that previous reports to society were thought out as a social balance. For this reason, it was decided to give the next step, in accordance with the headquarters and other leading companies in the world, in processes of corporate social responsibility. The year 2008, One of Challenges The year 2008 began with an important happening for the company: the halting in the operations of the mining site of La Colosa project, due to the suspension order issued by the Corporación Autónoma del Tolima (Cortolima). That situation took the company into pondering about the implications that it has to make investments in this country and about the future that it holds for the business, under the context of judicial uncertainty. As a token of irrevocable will of the company to invest and believe in this country, proving that the mining activity is indeed compatible with sustainable development, trying to diminish the disjunction posed by some opponents about the country being: “Mining Colombia or Environmental Colombia”, AngloGold Ashanti Colombia continues to make national investment programs in order to develop exploration projects.
  • 44. According to the Ministry of Mining and Energy of Colombia, the mining area contributed with the growth of 1.3% of the Gross Domestic Product (GDP) during the year 2008 in making a direct investment worth 2.116 million dollars. From this figure, 5% was destined towards precious metal exploration projects, which constitutes an investment of about 106 million dollars altogether, figure in which the contribution of AngloGold Ashanti Colombia has been quite significant. On the issue of tax contribution, AngloGold Ashanti Colombia paid over 3.900 million dollars during the previous year in Colombia. Due to the suspension of the mining project of La Colosa, the nation did not receive revenue and other benefits, such as the hiring of over 400 employees in Cajamarca, on behalf of tax contribution issues. In this same way, we perceive that in a municipality like this one, where the unemployment figures is close to 20% -according to the National Home Survey-, the project of La Colosa strongly contributes to reducing the number of unoccupied members of the communities. The challenge that we have as a company, is then, how to be able to communicate these positive impacts and to be able to show that AngloGold Ashanti Colombia is indeed an ally in the local, regional, and national development. OTHER CHALLENGES IN THE SUSTAINABILITY CONTEXT The policy of AngloGold Ashanti Colombia has been to work closely with the public area of the country. For this reason, one of the initiatives of the company has been to support the activity of the Ministry of Mining and Energy, Colombia Minera: Desarrollo Responsable, Mining Colombia: Responsible Development. The challenge posed to the company, on behalf of the Ministry, is to continue with the positive image promoted by the mining area with its social and economic growth, tax contribution, and its effective and proper involvement with the environment, which is one of the goals of this initiative. In order to respond to this challenge, AngloGold Ashanti Colombia has designed environmental, economic, and social risk maps, and has been aware and watchful over the implementation of international standards that the company holds, as may be observed in a detailed manner in the Report. The biggest challenge that we have as a company is to achieve an extracting development project, in order to prove, in a blunt and definite manner, that AngloGold Ashanti Colombia is concerned about sustainable development, that the mining activity is indeed compatible with the environment, and that the
  • 45. company is a good ally for the bettering of the quality of life of the communities where it operates. We just hope that in the next report this reality shows itself closer to our dream, so that we may not pose intentions, but that we may report indicators that come from productive activities, where we may reveal the policies in action and development that prove the bettering in the living conditions of the communities where we operate. ABOUT THE CONTENTS OF THE REPORT This Report has been designed, as I already expressed, keeping in mind the parameters of Global Reporting Initiative (GRI), G3 version. As required by GRI, we have designated that it is a type B report, as we have concluded the majority of the indicators that are included in these requirements, but have some aspects yet to cover, due to the fact that the company does not have projects in the advanced stages of the mining cycle. In addition to this, the company has not solicited external verification for this first Report, but commits to solicit such verification for the report in the year 2009. In the same manner, we have kept into account the Principles of the Global Pact of the United Nations and the Principles of the International Council on Mining and Metals (ICMM). Not all the information on the economic, social, and environmental development of AngloGold Ashanti Colombia is included in this Report, therefore those who wish to have more detailed information about the company, about its politics and corporate values, as well as its operations around the world, they may consult the official web site of the company, www.anglogoldashanti.com, where they may find all our reports, advances, and other pertinent key documents that allow the comprehension of the operations of the company. I just hope that the readers of this Report find themselves satisfied in their expectations, and that they find in this document an opportunity to know us better, and to establish a relationship of mutual benefit. Rafael Herz President
  • 46. Outcomes of the Report
  • 47. As it had been estimated, during the year 2008, the strategy was developed during the main moments known as Design and Implementation. In this Report, we will describe in detail the outcomes of the Strategy of Corporate Responsibility in every one of the different areas.
  • 48. Hispanic Architecture in Honda,. Tolima. 48
  • 49. Report to society 2008 Economicperformance
  • 50. Economic Performance economic performance *2008 *2007 Personnel (1) 36.238.675 16.734.387 Wages (2) 23.677.272 14.011.589 Taxes 3.949.860 2.633.188 Leasing 7.338.880 4.094.792 Contributions and Affiliations 191.717 73.569 Insurance 803.902 522.557 Services (3) 68.116.122 38.847.437 Legal Expenses (4) 27.108.369 10.971.737 Manteinance and Repairs 404.875 278.893 Adaptation and Assembly 751.990 497.328 Travel Allowance 10.785.742 5.919.842 Depreciation 1.698.297 959.608 Loss in Sales and Goods Retrieve 59.091 11.924 Miscellaneous (5) 21.969.234 11.202.641 Software 134.722 107.112 Licences 833.087 671.712 Inflation Adjustments 1.560.770 1.560.770 Deferred Monetary Correction 1.483.316 1.481.321 Total 207.105.921 110.580.407 * Totals are included in thousands of millions of Colombian pesos. AngloGold Ashanti Colombia is a company in an exploratory stage, reason for which all the expenditures in the table and all the constitution expenses, as well, are counted as deferred expenses. As the table shows, in the year 2008, the company invested in Colombia over $2.07 billion pesos, generationg taxes for almost $4 billion pesos. This level of investment was affected due to the fact that the project of La Colosa was suspended. Should the circumstances have been otherwise given, the level of investment would have been considerably higher, therefore, the direct economic impact for tax contribution as well as local labor and services hired in the region would have been much higher. In spite of facing the described situation, AngloGold Ashanti Colombia is convinced that there are opportunities to develop its operations in this country. For this reason, the company continued its program of exploration in a more intensive way, which can be seen in the personnel expenditures that were increased in $19.530 billion pesos, changing from $16.700 billion to $36.230 billion Colombian pesos, in the year 2008. This investment on local handwork is important not only because it benefitted the workers directly, but it also brought benefit to their families due to the tax contributions to social security were $6.469 million pesos, which allowed thea ccess to Health care services for those worker’s family members hired by AngloGold Ashanti Colombia. 50
  • 51. Report to society 2008 2008 2007 (thousands of pesos) Wages, Whole Salary, Transport Wages 20.220.783 9.482.510 Fringe Benefits 4.543.278 1.817.618 Bonuses and Indemnization 2.230.403 1.376.212 Social Security 6.469.017 2.854.528 Others 2.775.194 1.203.519 Total 36.238.675 16.734.387 Deepening into the salary issues, the company found that the standard minimum wage in the regions where AngloGold Ashanti Colombia develops its exploration projects is four hundred and sixty one thousand five hundred pesos ($461.500). However, the minimum wage for a worker in AngloGold Ashanti Colombia accures is equivalent to eight hundred two thousand and five hundred pesos ($802.500), which represents a difference of three hundred and forty-one pesos ($341.000). This difference in the salary, which could very well seem quite insignificant for some, is important for the people from these regions and, that is why the company trains the employers on personal finance management. Dusk in the South of the Department of Bolívar. Río Viejo, Bolívar.
  • 52. Our collaborators: Our most valuable resource. In adition to this, AngloGold Ashanti Colombia has a policy by which it gives priviledge to the local suppliers where the company operates its projects. Thus, in the year 2008, suppliers of goods and services received income of $16467 million Colombian pesos. This way, the company not only generates direct employment, but it is also a source of indirect employment to benefit those groups in its value chain, allowing them to increase their market and receive higher income and opportunities. Pay to local suppliers 2008 (thousands of pesos) Purchase of field consumable products 4.880.106 Casinos and restaurants 2.792.542 Utility and cafeteria supplies 1.865.743 Paper shop and copy center materials 1.073.015 Taxicabs, buses, and transport expeditures 654.309 Fuels and lubricants 595.944 Others 4.605.839 Total 16.467.498 52
  • 53. Report to society 2008 Besides the economic benefits generated through the employment of local handwork and suppliers, the company invest on social work per se, trying to improve living conditions in the communities of the region where the company operates its projects. In the year 2008, investment destined for communities was higher than $539 million pesos, distributed in each one of the lines of social intervention, and it was proportionally equivalent in distribution to the stage of mining cycle in which the projects of exploration are that AngloGold Ashanti Colombia develops. The investment was divided in the following way: Line (thousands of pesos) La Sierra Río Dulce Salvajina La Colosa Total Governability $ 23.745.032 $ 2.136.000 $ 41.011.000 $ 329.359.012 $ 396.251.044 Economic $ 10.125.000 $ 1.400.000 $ 16.800.000 $ 91.538.472 $ 119.863.472 Development Environmental $0 $ 625.000 $0 $ 22.435.900 $ 23.060.900 Care Total $ 33.870.032 $ 4.161.000 $ 57.811.000 $ 443.333.384 $ 539.175.416 Besides the economic benefits generated through the employment of local handwork and suppliers, the company invest on social work per se, trying to improve living conditions in the communities of the region where the company operates its projects. In a chart the logging data is collected. San José del Nus, Antioquia.
  • 54. attendingto Health and the Safety of the People 54
  • 56. Attending to Health and the Safety of the People The interest for safety is our most important value: La Colosa, Cajamarca, Tolima. In the Declaration of Values at AngloGold Ashanti Colombia, it is asserted that safety is its primary value, which means that the prime value is related with the safety and health of its employees. The company has a policy of occupational health and safety oriented towards caring after the wellbeing of the workers, this through a permanent assessment upon risks and hazards that a committee specialized in occupational health and safety runs. This program allows the committee to educate and train the personnel in matters related to prevention of accidents in the workplace, and occupational illnesses. During the year 2008, the bureau of Industrial Health and Occupational Health (SISO) ran an exercise in hazard analysis in the Bogotá offices and in the site of the project of La Colosa. The risks that were identified are the following: Electrical accidents Traffic accidents Aerial accidents Mechanical accidents Fire / Explosions Volcanic explosions Earthquakes Overflows Floods Civil disobedience Direct violence 56
  • 57. Report to society 2008 Based upon these results an emergency plan was designed by the company, and brigades were designated both in Bogotá and at the site in La Colosa, Cajamarca. On a monthly basis, the people on the brigade take 10 hours of training and run drills. In addition to this, the company runs medical assistance days in order to promote weight control, and the importance of physical activity, as well as promoting days for vaccination against illnesses such as influenza, in order to prevent this type of infectious diseases during times in which they appear amidst the population of the region, in general terms. During the year 2008, cases for leave of absence equivalent to 546 days were reported. The main cause was the reference of ill respiratory conditions, reason for which, as it has been stated previously, days were destined for vaccination. For those workers dedicated to activities of prospection, the main cause for leaves of absence was the presence of tendinitis and knee related disorders. Only on the site of La Colosa some accidents were experimented due to soil conditions- that favor falls and slips- and the poor manipulation of tools. The total number of registered cases was of 953 events. This concern for health and safety of the employees is also projected towards the community. Hence, in the year 2008, the company contributed along with the Municipality’s Mayor’s Office and the local hospital towards the purchasing of the ambulance for the Hospital de Cajamarca, destined to transport the ill and the injured from distant locations to the hospital, due to the fact that the hospital did not have a means of transport of its own that was adequate to cover the needs of the rural area. We follow a permanent risk assessment in our concern for the safety of our collaborators. Project site, La Colosa, Cajamarca, Tolima. This concern for health and safety of the employees is also projected towards the community.
  • 58. We follow a permanent risk assessment in our concern for the safety of our collaborators. Project site, La Colosa, Cajamarca, Tolima. 58
  • 59. Report to society 2008 workingconditions
  • 60. Working conditions For AngloGold Ashanti Colombia, one of its main groups of interest is conformed its collaborators. For this reason, in the Declaration of Values, it is stated that everyone is to betreated with dignity and respect. For AngloGold Ashanti Colombia, honoring Human Rights for employees is a basic principle of its working conditions, generating employment that dignifies and satisfies people’s necessities. 60
  • 61. Report to society 2008 In the year 2008, the company had 800 Colombian employees, all of them coming from the areas where the development projects took place: TOTAL NUMBER OF EMPLOYEES DESCRIBED BY GENDER AND REGION Region Total Number Male Female Bogotá 70 34 36 Antioquia 182 161 21 Boyacá 9 9 - C. Nacional 68 52 16 Caldas 21 21 - Cauca 16 14 2 Chocó 23 23 - Cundinamarca 58 51 6 Florencia 14 14 - Huila 20 20 - Magdalena 17 17 - Nariño 12 12 - Putumayo 66 66 - Santander 9 9 - Sur de Bolívar 30 30 - Tolima 174 149 24 Valle 10 9 2 Vichada 1 1 - Total 800 692 107 Given the nature of this economic activity, most of the workers are men (692), representing the 87% of the total population, while women (107) represent the 13% of the total difference. This situation influences the salary difference. Male workers receive higher income than women, due to the fact that their posts are located at a higher hierarchical level inside the company, as shown in the following table:
  • 62. SALARY OF MEN IN COMPARISSON TO SALARY OF WOMEN, DESCRIBED BY PROFESSIONAL CATEGORY Education level Gender Salary Average (thousands of pesos) Female 802.500 Primary Basic Education Male 802.500 Female 5.623.667 Business Administration Male 5.961.960 Financial Management Male 5.340.000 Airline Management Female 3.103.000 Female 1.660.000 High School Education Male 2.592.667 Marine Biology Male 4.953.000 Female 4.659.500 Social Communication Male 4.953.000 Technical Accountant Male 5.378.000 Female 4.277.571 Public Accounting Male 6.083.500 Female 7.283.964 Law Male 4.700.000 Ecology Male 6.600.000 Economy Male 8.267.000 Female 4.689.222 Geology Male 7.282.116 Environmental Engineering and Natural Resources Male 4.651.000 Mining and Environmental Engineering Male 23.334.000 Female 6.105.000 Systems Engineering Male 3.693.500 Industrial Engineering Male 5.153.500 Mechanical Engineering Male 27.277.000 Sanitary and Environmental Enginnering Female 6.033.000 Geodesy and Cartography Engineering Male 6.833.333 Civil Engineering Male 7.430.000 Design Engineering and Electronic Automation Female 8.992.000 Mining Engineering Male 5.414.167 Modern Languages Female 1.616.000 Linguistics and Literature Female 4.953.000 Medicine Male 10.614.000 Internatonal Business Female 4.000.000 Politology Female 4.000.000 Professional in Military Sciences Male 11.008.000 Professional in Occupational Health Female 4.600.000 Psychology Female 5.807.750 Technician in Exploration Male 1.987.500 Female 2.066.000 Systems Technician Male 5.973.000 Technical Bilingual Secretariat Female 3.000.000 Environmental Tecnologist Female 3.769.000 Business Management Technology Female 4.600.000 62