translating opportunities into sustainable value for the societies in which we operate

1. translating opportunities into sustainable value for the societies in which we operate African Resource Management for Sustainable Development YZ Simelane August 2010

2. AngloGold Ashanti…a global company AngloGold Ashanti is unique in the world of mining… ...diversity and our Vision for the future demands a different approach.

3. STRATEGY – SETTING DIRECTION To deliver our objectives we will focus on some critical actions… • KEY STRATEGIES • “The directional approaches and specific actions that will deliver on our objectives: • Grow the business – be opportunistic looking for value accretion targets. • Manage the business as an “asset portfolio” - use capital deployment optimisation approaches to support delivery of return targets. • Maximise margins – manage both revenues and costs to ensure delivery and protection of returns through the price cycle. • Embrace sustainability principles – understand and focus on creating value for both business and social partners to manage risk and opportunity. • Recognise people are the business – organization development will be a strategic value driver for the business. …that will help us integrate and coordinate our activities.

4. Defining a Starting Point In developing our strategy… Level 1 No sustainability issue will negatively impact an operation, a project or an exploration venture. Level 2 Sustainability will provide the a basis upon which we increase value through balancing cost reduction and value enhancement. Level 3 Sustainability will be a long term competitive advantage for AngloGold Ashanti – supporting our efforts to acquire properties and to manage them so that we create enduring value for the communities in which we operate. …we must be aligned on where we start and how we go forward.

5. BUSINESS SUSTAINABILITY PRIMARY PURPOSE: To develop the strategy, incorporating the policy and systems framework, to create the relationships necessary to create a long term competitive advantage. • SCOPE • Safety and Health • Environment • Community relations • Government relations • Corporate communications (including AGA branding) • Product marketing and stewardship …to create a relationship model that defines how we engage the future.

6. Global Trends in the mining Industry • Increase Resource Nationalism • Increasing focus on sustainability issues in mining • Role of China as a major mining investor in the developing world – particularly in AFRICA

7. Increasing Resource Nationalism Has manifested itself in some of the following : • A move towards greater state ownership using state owned mining companies • Review of mining codes/acts, mining charters and mining development agreements • Tougher tax regimes and royalty agreements

8. Case Studies: Some selected global case studies Co Co Country

9. Case Studies: Some selected global case studies - continued

10. 2. Increased Focus on Sustainability Issues

11. Increased Focus on Sustainability Issues - continued • The focus on sustainability practices and pressure on sustainability performance has intensified over time as the public becomes better informed. • Wide spread reporting and commentary on environmental disasters such as Exxon Valdez, BP safety breaches and oil spills • Widespread use of social media and ease of communication

12. 3. Role of China as a major mining investor Total Chinese outbound investment 2005 – 2010 (Source Eurasia Group) • Chinese FDI has been a game changer in the global economy • Since 2005, Chinese outbound investment has been approximately $194 billion • Investment could hit $60 billion in 2010 alone

13. 3. Role of China as a major mining investor - continued Chinese investment in mining (incl. coal): 2005 – 2010 (Source: Eurasia Group) • Chinese demand for commodities is fuelling growth and expansion. • China was the second-largest investor in both Australia and Canada in 2009 as well as the second-largest M & A investor in the global minerals sector.

14. 3. Role of China as a major mining investor - continued China/US outbound investment in Africa: 2003-2009 (Source: Eurasia Group) • Significant deals are being signed by Chinese companies in Africa (e.g. a $3bn iron ore investment in Gabon in 2006; a $1.35bn investment in Guinea in 2010). • Africa grew from less than 3% of China’s total outbound investment in 2003 to almost 10% by 2008.

15. Material Issues within AGA’s areas of operation • AngloGold Ashanti assessed its SIX material issues for 2009 using a ‘materiality process’ on an annual basis. • We assess these issues according to a three-stage process: • 1. A review of our key sustainability risks (eg health, safety, environment, government) • 2. Understand key stakeholder issues (using global reporting standards as proxy). • 3. Compare the results of this assessment with the sustainability issues identified by the media in relation to AngloGold Ashanti and mining sector peers during the year, and with the key issues cited in peer reports.

16. Material Issues within AGA’s areas of operation - continued • Safety and health • Resource custodianship • Human rights • Delivering economic benefits • Capacity building, transformation and engagement • Closure planning and provision

17. Conclusion: Issues for consideration • African nations now have a choice • Multinational companies can make a positive contribution • How do multinational companies (MNCs) demonstrate value add in turning natural resources to long term sustainable value – leaving a legacy for future generation in context of extractive industries? • The times are changing and fast – MNCs have to adapt and quickly. • Focus no longer technical and financial in assessing assets • Competitive edge is in managing the social, economic, environmental and political • African governments no longer tolerant of carrying “hidden costs” without tangible long term value creation

18. Conclusion: Issues for consideration - continued • 5. Greater responsibility from both sides: • MNCs and African Governments, from exploration stage to the end of life of an operational mine • True analysis of costs and benefits in all scenarios, price and socio-political • Ability to review contracts to accommodate changed circumstance ??? • 6. African Governments to deal with institutional weakness – rule of law, separation of powers, skills etc. • 7. Improved transparency – greater responsibility in terms of being accountable to their own people • 8. Understanding of a common destiny – This is not about “soft issues” – it is about creating sustainable businesses and societies

19. Thank you