Anglo American in South Africa has published its fifth annual Transformation Report, detailing its contribution towards creating a more inclusive and equitable South African society.

A cornerstone of Anglo American’s commitment to transformation is its focus on developing sustainable mining communities. Anglo American has long operated in many areas of the country that are underdeveloped and remote, developing and supporting critical infrastructure—such as roads, health facilities, and clean water—that helps to improve the lives of local communities.

During 2015, Anglo American invested R958 million on community development investments alone. By partnering with the Department of Mineral Resources on the Social and Labour Plans (SLPs), we have been able to invest in infrastructure where it matters most: at local government level.

Andile Sangqu, Executive Head of Anglo American in South Africa, said: “In the face of global and domestic economic challenges, the need for us to make a positive, sustainable contribution to society is perhaps greater than ever. We have not compromised our efforts towards meeting our country’s transformation goals, and the many benefits that we bring are evident in the communities around which we mine.”

In 2015, we continued our partnership with the Development Bank of Southern Africa on the Municipal Capacity Development Programme. To date, the programme has had positive economic benefits, improving revenue collection systems in 11 municipalities located in five provinces across South Africa.

“The challenging market conditions will undoubtedly impact the scale of our socio-economic investments. Anglo American is a consistent and significant contributor to South Africa’s development and we are thinking innovatively about how we can continue to contribute most effectively,” said Andile Sangqu.

To advance beneficiation, we launched the world's first fuel cell mini-grid electrification field trial—through our Platinum business unit—in the rural communities of Kroonstad in the Free State, and Cofimvaba in the Eastern Cape. The system is being piloted as a provider of electricity to remote communities where the cost of electrification, via an expansion of the national grid, may be cost or technically prohibitive.

Lindiwe Zikhali, Head of Regulatory Affairs and Transformation, added: “We have gone beyond compliance in many of our efforts to advance transformation. It is not a “tick box” exercise, it is a business imperative that our employees and leaders are embracing across our company,” said Lindiwe Zikhali.

Highlights from our 2015 Transformation Report:

Developing mine communities

During 2015, we invested R958 million in supporting education, infrastructure (such as roads and schools), and community health in South African communities. Through Anglo American’s Chairman’s Fund and our Social Labour Plan (SLP) commitments, our efforts have been bolstered by collaborating with multiple stakeholders.

Improving housing and living conditions

By the end of 2014, all Anglo American business units had achieved the Mining Charter requirements to fully convert all traditional mining hostels into single or family units. In 2015, we spent more than R1.9 billion on housing initiatives, including expenditure on bulk services, land purchases and housing allowances.

Enterprise development

Zimele, our longstanding enterprise development initiative, continues to act as a catalyst for emerging black entrepreneurs. In 2015, Zimele’s funds provided R308 million in funding 321 businesses that collectively employed more than 8600 people.

Promoting socio-economic development through local procurement

We’re focussed on building the capacity of local suppliers, with an emphasis on black-owned and women-owned suppliers. In 2015, we spent R36.7 million, nearly 80% of its total expenditure, in South Africa.

Achieving equity in our workplace

We have maintained, and in some areas improved, our levels of historically disadvantaged South African (HDSA) representation at management levels, with the overall aggregate improving from 62% last year to 63%.

Investing in our skills base

We have developed a strong pipeline of skills, particularly at entry-level, as a result of our graduate and fast-tracking programmes. In 2015, our businesses spent R936 million on HDSA training and development.

For more information about Anglo American's approach to transformation, please visit http://southafrica.angloamerican.com/our-difference/transformation.aspx

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