Edgar Filing: ANGLOGOLD LTD

Page 1

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 or 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

Report on Form 6-K dated

15 MARCH 2004

AngloGold Limited

(Name of Registrant)

11 Diagonal Street

Johannesburg, 2001

(P O Box 62117)

Marshalltown, 2107

South Africa

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F: Form 40-F:

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes:

No:

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes:

No:

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes:

No:

Enclosures:

Report to Soceity

report to

society

2003

Contents:

Annual financial statements

Opposite page flap

Page

Letter from the CEO

Corporate profile

Our stakeholders

Living our values

AngloGold's mission

AngloGold's values

Our business principles

AngloGold's ethics and governance

AngloGold in the community

AngloGold as an employer - safety and health

AngloGold as an employer - our labour practices

AngloGold and the environment

AngloGold as an employer

Contacts

Feedback form

The full Report to Society 2003 is available on AngloGold's website - www.anglogold.com,

or on a CD or in a printed form from the contacts indicated at the back of this document.

AngloGold Report to Society 2003

ethics & governance

labour practices

community

environment

occupational safety & health

HIV/AIDS

Sustainability reporting is a relatively new phenomenon in the corporate world. AngloGold's first such report - Towards sustainability: A social investment report 2001/2 - was published in October 2002. This is the second. It is titled, we believe more appropriately, a Report to Society, and is, in many respects, very different from the first in presentation and content.

This report seeks, as did the first, to explain and assess the economic, social and environmental responsibilities and performance obligations the company believes it has with regard to its stakeholders, who include our shareholders, our employees, their families, employee representatives, the communities in which we operate and government. We seek to measure our performance in these areas against our declared principles, goals and objectives: which are to run a business that is profitable; manage workplaces that are safe and healthy; ensure that the environments in which we operate are ecologically sound and sustainable; and ensure that communities within which we operate are better off for AngloGold being there.

For the first time, the Report to Society is published together with the annual financial statements containing full, statutory and other information on the company's financial results for 2003 and reports on operations, the market in which we operate and corporate governance. As such, this package of information truly represents a comprehensive report to society as a whole. Also for the first time, aspects of the AngloGold Report to Society have been audited, or reviewed according to specified criteria described elsewhere in this report. This is a discipline still in its infancy internationally. It has been a useful and enlightening exercise for us and, we hope, for the PricewaterhouseCoopers team with which we have worked. We hope it enhances the credibility of our report and we hope that, in the years ahead, as our reporting techniques and experience advance, our reporting will be audited with increasing levels of rigour.

None of this is unprecedented in the world of corporate reporting. However, it is unique in certain important ways. What we have sought to do is to produce, even create, a report that is useful, informative and, most importantly, accessible to the broadest range of interested readers.

Letter to stakeholders

This is not the usual multi-leaved, glossily textured sustainability report which, anecdotal evidence suggests, usually lies around for a few days before being despatched, unread, to the wastebasket - usually because the bulky document contains a wide range of information, much of which is of little interest to the average reader or stakeholder and that which may be of interest seems too difficult to find.

Instead, we have produced an electronic, web-based report where selected aspects that may be of interest to any particular reader are easily accessible, and distinguishable from those which are not.

The report is structured, primarily, to reflect AngloGold's business principles. Hence, it is divided into a number of disciplines: economic performance; environmental performance; labour practices; AngloGold in the community; industrial safety; industrial health; and HIV/AIDS - the latter considered to be a sufficiently critical business and social issue in many areas of AngloGold's operations to be deserving of separate assessment.

Within this structure, under each discipline will be found AngloGold's related business principles, key indicators, milestones of 2003, a fuller review of 2003, objectives for 2004, and reporting in terms of the relevant questions of the Global Reporting Initiative (GRI), which appears to have become the closest thing there is to a universal framework for sustainability reporting. In addition, under each section will be found a range of case studies; usually at least one for each of the regions in which we operate - South Africa, East and West Africa, Australia, South America and North America.

To improve accessibility, information in the report can be accessed according to any one of three criteria: by discipline; by region; or by GRI format. Hence, we hope, the report will be as useful to an environmentalist or industrial health specialist as it will be to an ordinary resident or the mayor of a village in Mali or Brazil, or a trade unionist with an interest either in their own country or internationally, or a cabinet minister in any country in which we operate. Once accessed according to the desired criterion, the relevant section can be electronically downloaded, or printed in colour or black and white.

There is much in what we do, and about which we have written of which we are proud - our HIV/AIDS programmes in South Africa and elsewhere are a case in point. But we are also the first to recognise there are areas where our performance has been less than optimal, such as mine safety, particularly in our deep level mining operations. We have sought to be as honest and objective as possible in describing both, and where our performance does not measure up to the standards we have set ourselves, have sought to outline what we are doing to change that. And we accept we should expect to be judged in the year and years ahead by the extent to which we have moved closer to fulfilling the principles which, we believe, give us the moral licence to continue conducting our business.

Bobby Godsell
Chief Executive Officer

15 March 2004

A leading gold producer,
with operations and projects
around the world

AngloGold is one of the world's leading gold producers, producing almost 6 million ounces of gold every year. The company has a truly global presence, with 19 operations in eight different countries. Its extensive exploration programme reaches across five continents, with current projects in 10 countries.

Its operations are directed from the corporate office in Johannesburg, with other offices located in Accra, Denver, Nova Lima, New York and Perth. Exploration offices are located in Lima - Peru, Nova Lima - Brazil, Johannesburg and Carletonville - South Africa, Elko - Nevada, Bamako - Mali, Perth - Australia, and Ulan Baatar - Mongolia.

Diversity in people and production

AngloGold employs 55,000 people (including contractors) in Argentina, Australia, Brazil, Mali, Namibia, South Africa, Tanzania and the United States of America. Its people speak more than 15 languages, and operate across all time zones.

The company has nine underground mines, nine surface or opencast mines and one surface reclamation operation, providing for a huge diversity in operations, skills and expertise.

The gold investment of choice

AngloGold's primary listing is on the JSE Securities Exchange in Johannesburg. The company is also listed on the New York Stock Exchange, the Australian Stock Exchange, the London Stock Exchange, as well as on the Paris and Brussels Euronext bourses.

Its shareholders are drawn from around the globe, attracted by the company's track record of delivering competitive shareholder returns through solid earnings, strong cash flows and significant dividend payouts.

The future - AngloGold-Ashanti

The merger between Ashanti Goldfields and AngloGold, which is expected to be completed in April 2004, will combine Ashanti's exceptional orebodies, operating experience and world-class management with the deep- level underground experience and financial strength of AngloGold. The result will be AngloGold-Ashanti, a world-class, global gold company with its origins and a substantial portion of its asset base and future growth potential firmly within Africa.

AngloGold and gold - for many people - investors, employees, communities - the two words are synonymous. Although AngloGold itself was only formed in 1998, companies and mines within the group have a long and distinguished history and have played an integral role in the development of the regions and countries in which they operate.

Corporate profile

Brazil

Argentina

Serra Grande

Cerro Vanguardia

Morro Velho

USA

Cripple Creek

& Victor

Mali

Tanzania

Namibia

Geita

Sadiola

Yatela

Morila

Navachab

SA operations

South Africa

Boddington

Australia

Alaska

Canada

Peru

Sunrise Dam

Mongolia

New York

Paris

Brussels

Johannesburg

Sydney

Mines

Greenfields exploration areas

Brownfields exploration areas

Stock exchange listings

London

Where we do business

OUR STAKEHOLDERS: RELATIONSHIPS THAT MATTER...

We are committed to developing mutually beneficial partnerships with our stakeholders throughout the life cycle of our operations. Our principal stakeholders include:

This document lays out AngloGold's mission and values and describes how we live them through our business principles. These principles are applicable across the company and in all the countries in which we do business, and they inform the way in which we will go about achieving our mission, balancing key economic, social, environmental and ethical values. We acknowledge that they are aspirational in that we have not yet delivered on all of our commitments but are working towards this goal. Furthermore, these principles are not cast in stone but will evolve over time as we interact with our stakeholders, both internal and external, and refine what it is that we believe we should be saying, and more importantly, doing as a company.

As a point of departure, AngloGold believes that democratic government and market economies should be mutually reinforcing. We have, therefore, committed ourselves to a style of corporate citizenship that supports the values of both democracy and market economics.

Shareholders

Business partners

Government

Employees' families

and communities

Employee

representatives

Employees

Our stakeholders

OUR VALUES:
HOW WE EXPECT TO
GET WHERE WE WANT TO GO...

1. AngloGold consistently strives to generate

competitive shareholder returns. We do this by replacing profitable gold reserves and by continuously improving the performance of our key resources - our people, our assets and our product. We conduct ourselves with honesty and integrity.

We provide our employees with opportunities to develop their skills while sharing risks and rewards in workplaces that promote innovation, teamwork and freedom, with accountability. We embrace cultural diversity.

3. Every manager and employee takes responsibility for health and safety; and together strive to create

workplaces which are free of occupational injury and illness.

4. We strive to form partnerships with host communities, sharing their environments, traditions and

values. We want the communities to be better off for AngloGold having been there. We are committed to working in an environmentally responsible way.

Living our values

ANGLOGOLD'S MISSION:
WHAT WE ARE HERE TO DO...

Our Business Is Gold

We consistently seek to create value for everyone with a stake in our company, by finding and mining gold and by developing the market for our product.

OUR BUSINESS PRINCIPLES

We live our values through our business principles. These principles are applicable across AngloGold, and in all the countries in which we do business. They inform the way in which we go about achieving our mission, and balancing key economic, social, environmental and ethical values.

These principles will evolve over time as we interact with our stakeholders, both internal and external.

Business principle:

AngloGold's ethics and governance

We will comply with all laws, regulations, standards and international conventions which apply to our businesses and to our relationships with our stakeholders. Specifically, AngloGold supports the Universal Declaration of Human Rights, the Fundamental Rights Conventions of the ILO and those principles and values referred to in the United Nations Global Compact.

Should laws and regulations be non-existent or inadequate, we will maintain the highest reasonable regional standard for that location.

We will fully, accurately and in a timely and verifiable manner, consistently disclose material information about the company and its performance. This will be done in readily understandable language to appropriate regulators, our stakeholders and the public.

We will not offer, pay or accept bribes, nor will we condone anti-competitive market practices and we will not tolerate any such activity by our employees.

We prohibit our employees from trading shares when they have unpublished, material information concerning the company or its operations.

We require our employees to comply with all money handling requirements under applicable law, and we further prohibit them from conducting any illegal money transfers or any form of "money laundering" in the conduct of the company's business.

We will require our employees to perform their duties conscientiously, honestly and in ways which avoid conflicts between their personal financial or commercial interests and their responsibilities to the company.

We will take all reasonable steps to identify and monitor significant risks to the company and its stakeholders. We will endeavour to safeguard our assets and to detect and prevent fraud. We will do this in a manner consistent with the international human rights agreements and conventions to which we subscribe.

We will promote the application of our principles by those with whom we do business. Their willingness to accept these principles will be an important factor in our decision to enter into and remain in such relationships.

We are committed to seeking out mutually beneficial, ethical long-term relations with those with whom we do business.

We encourage employees to take personal responsibility for ensuring that our conduct complies with our principles. No employee will suffer for raising with management violations of these principles or any other legal or ethical concern. Although employees are encouraged to discuss concerns with their direct managers, they must, in any event, inform the Group Internal Audit Manager of these concerns. Mechanisms are in place to anonymously report breaches of this statement of principles.

The company will take the necessary steps to ensure that all employees and other stakeholders are informed of these principles.

If an employee acts in contravention of these principles, the company will take the appropriate disciplinary action concerning such contravention. This action may, in cases of severe breaches, include termination of employment. In addition, certain contraventions may also result in the commencement of civil proceedings against the employee and the referral of the matter to the appropriate enforcement bodies if criminal proceedings appear warranted.

AngloGold in the community

Occupational safety & health

Labour practices

Environment

HIV/AIDS

Ethics & governance

AngloGold in the community

Occupational safety & health

Labour practices

Environment

HIV/AIDS

Ethics & governance

Business principle:

AngloGold in
the community

AngloGold's aim is to have a positive impact on the people, cultures and communities in which it operates. Accordingly, AngloGold will be respectful of local and indigenous people, their values, traditions, culture and the environment.

We will strive to ensure that surrounding communities are timeously informed of, and where possible, involved in, developments which affect them, throughout the life cycle of our operations.

We will undertake social investment initiatives in the areas of need where we can make a practical and meaningful contribution. In particular, we will contribute to those areas of education and health care which are relevant to our business activities, and those most likely to be sustainable once our operations have come to a conclusion in that community.

The company will encourage its employees to make themselves available for participatory and leadership roles in community activities.

We will seek to acquire and use land in a way which promotes the broadest possible consensus amongst interested people. Where involuntary resettlement is unavoidable, we will abide by appropriate guidelines for resettlement where they exist, and in any event will work with the local communities to develop workable plans for any resettlement which may be necessary.

We will strive to contribute to the sustainable economic development of host communities through procurement activities; the contribution of redundant assets to the community; assistance in the establishment and growth of small- to medium-sized sustainable enterprises; and the outsourcing of goods and services from local vendors where appropriate.

AngloGold in the community

Occupational safety & health

Labour practices

Environment

HIV/AIDS

Ethics & governance

Business principle:

AngloGold as an employer -
safety and health

The company is committed to complying with all relevant occupational health and safety laws, regulations and standards. In the absence of such standards, leading practice will be adopted.

We are committed to providing a working environment that is conducive to safety and health.

The management of occupational safety and health is a prime responsibility of line management, from the executive level to the first line supervisory level.

We strive for employee involvement and consultation with employees or their representatives to gain commitment in the implementation of these principles.

The company is committed to providing all necessary resources to enable compliance with these principles.

The company will not tolerate or condone deliberate breaches in standards and procedures.

We will implement safety and health management systems based on internationally recognised standards and we will assess the effectiveness of these systems through periodic audits.

We will conduct the necessary risk assessments to anticipate, minimise and control occupational hazards.

We will promote initiatives to continuously reduce the safety and health risks associated with our business activities.

We will set safety and health objectives based on comprehensive strategic plans and will measure performance against these plans.

We will monitor the effects of the company's operational activities on the safety and health of our employees and others, and we will conduct regular performance reviews.

We will provide all necessary personal protective equipment.

We will establish and maintain a system of medical surveillance for our employees.

We will communicate openly on safety and health issues with employees and other stakeholders.

We will ensure that employees at all levels receive appropriate training and are competent to carry out their duties and responsibilities. We will require our contractors to comply with these principles and we will seek to influence joint partners to apply them as well.

Business principle:

AngloGold as an employer -
our labour practices

AngloGold is committed to upholding the Fundamental Rights Conventions of the ILO. Accordingly, we seek to ensure the implementation of fair employment practices by prohibiting forced, compulsory or child labour.

AngloGold is committed to creating workplaces free of harassment and unfair discrimination.

As an international company, we face different challenges in different countries with regard to, for example, offering opportunities to citizens who may not have enjoyed equal opportunities in the past. In such cases, the company is committed to addressing the challenge in a manner appropriate to the local circumstances.

We will seek to understand the different cultural dynamics in host communities and adapt work practices to accommodate this where doing so is possible and compatible with the principles expressed in this document.

The company will promote the development of a work force that reflects the international and local diversity of the organisation.

The company will provide all employees with the opportunity to participate in training that will improve their workplace competency.

The company is committed to ensuring that every employee has the opportunity to become numerate and functionally literate in the language of the workplace.

The company is committed to developing motivated, competent and experienced teams of employees through appropriate recruitment, retention and development initiatives. An emphasis is placed on the identification of potential talent, mentoring and personal development planning.

Remuneration systems will reward both individual and team effort in a meaningful way.

Guided by local circumstances, we shall continue to work together with stakeholders to ensure minimum standards for company-provided accommodation.

The company assures access to affordable health care for employees and where possible, for their families.

We are committed to prompt and supportive action in response to any major health threats in the regions in which we operate.

AngloGold in the community

Occupational safety & health

Labour practices

Environment

HIV/AIDS

Ethics & governance

AngloGold in the community

Occupational safety & health

Labour practices

Environment

HIV/AIDS

Ethics & governance

Business principle:

AngloGold and the environment

We recognise that the long-term sustainability of our business is dependent upon good stewardship in both the protection of the environment and the efficient management of the exploration and extraction of mineral resources.

We will comply with all applicable environmental laws, regulations and requirements.

We are committed to establishing and maintaining management systems to identify, monitor and control the environmental aspects of our activities.

The company will ensure that financial resources are available to meet its reclamation and environmental obligations.

The company will ensure that its employees and contractors are aware of this policy as well as their relevant responsibilities.

We will conduct audits to evaluate the effectiveness of our environmental management systems.

We are committed to communicating and consulting with interested and affected parties on environmental aspects of our activities.

We will work to continually improve our environmental performance; and

The company will participate in debate on environmental matters at international, national and local levels.

AngloGold in the community

Occupational safety & health

Labour practices

Environment

HIV/AIDS

Ethics & governance

Business principle:

AngloGold as an employer

AngloGold is committed to upholding the Fundamental Rights Conventions of the International Labour Organization (ILO). Accordingly, we seek to ensure the implementation of fair employment practices by prohibiting forced, compulsory or child labour.

AngloGold is committed to creating workplaces free of harassment and unfair discrimination.

The company will promote the development of a work force that reflects the international and local diversity of the organisation.

The company will provide all employees with the opportunity to participate in training that will improve their workplace competency.

The company is committed to ensuring that every employee has the opportunity to become numerate and functionally literate in the language of the workplace.

The company is committed to developing motivated, competent and experienced teams of employees through appropriate recruitment and retention and development initiatives. Emphasis is placed on the identification of potential talent, mentoring and personal development planning.

Remuneration systems will reward both individual and team effort in a meaningful way.

Guided by local circumstances, we shall continue to work together with stakeholders to ensure minimum standards for company-provided accommodation.

The company assures access to affordable health care for employees and where possible, for their families.

We are committed to prompt and supportive action in response to any major health threats in the regions in which we operate.

EP1

Economic performance

Contents

Economic performance

..................................................

EP1

1. Mission and values

........................................................

EP2

2. Key indicators and milestones

........................................

EP3

3. Review of 2003

...............................................................

EP3

4. Reporting in line with GRI

...............................................

EP7

5. Objectives for 2004

.......................................................

EP9

6. Case studies

6.1 Meeting the equity component of the Charter

..................

EP10

6.2 Growing the market for gold

.......................................

EP11

The key financial indicators are extracted from the Audited Annual Financial Statements for the year ended 31 December 2003.

Economic performance

EP2

1. Mission and values

AngloGold's mission, values and business principles, which had been developed in consultation with employees, were further refined during 2003 to more accurately reflect our purpose and the way in which we intend to do business. This will continue in 2004, and will be the subject of a comprehensive internal communications compaign during 2004 and beyond.

AngloGold's mission:

Our business is gold

We consistently strive to create value for everyone with a stake in our company, by finding and mining gold and by developing the market for our product.

Our values:

AngloGold consistently strives to generate competitive shareholder returns. We do this by replacing profitable gold reserves and by continuously improving the performance of our key resources - our people, our assets and our product. We conduct ourselves with honesty and integrity.

We provide our employees with opportunities to develop their skills while sharing risks and rewards in workplaces that promote innovation, teamwork and freedom with accountability. We embrace cultural diversity.

Every manager and employee takes responsibility for health and safety; and together strive to create workplaces that are free of occupational injury and illness.

We strive to form partnerships with host communities, sharing their environments, traditions and values. We want communities to be better off for AngloGold's having been there. We are committed to working in an environmentally friendly way.

Our business principles:

We live our values through our business principles. These principles are applicable across AngloGold, and in all the countries in which we do business. They inform the way in which we go about achieving our mission, balancing key economic, social, environmental and ethical values.

These business principles which will evolve over time as we interact with our stakeholders, both internal and external, are:

AngloGold's ethics and governance

AngloGold as an employer - safety and health

AngloGold in the community

AngloGold and the environment

AngloGold as an employer - our labour practices

Economic performance

EP3

2. Key indicators and milestones

Gold production of 5.62Moz in 2003, from 19 operations in eight countries

Cost of goods and services to operate mines and produce refined metal of US$767 million, including market development costs and net of other income

US$660 million paid to employees in salaries, wages and other benefits (US$443 million in 2002)

US$142 million set aside for taxation, down from US$165 million in 2002

Dividends of US$224 million distributed to shareholders, and US$49 million paid towards financing costs

US$261 million reinvested in the group (2002: US$273 million), with retained income rising to US$88 million

Ore Reserves of 63Moz and Mineral Resources of 213Moz at the end of December 2003, providing sustainable operations well into the future

3. Review of 2003

Financial performance

A full review of the 2003 financial year can be found in AngloGold's 2003 Annual Financial Statements. Sections of these may be found as follows:

Key features of 2003

Letter from the Chairman and CEO

Review of the gold market

Financial review

Summarised group operating and financial results

Review of operations

Exploration

Mineral Resources and Ore Reserves

and

Supplementary information of

Mineral Resources and Ore Reserves

Directors and executive management

Annual financial statements

Economic performance

Review of 2003

EP4

Adding value

The following charts indicate the distribution of the wealth created by the company during 2003, and a comparison with 2002. A detailed

value-added

statement

may be found in the

Annual Financial Statements

Gold production

AngloGold produced 5.62Moz of gold in 2003 from 19 operations in eight countries. This was, as expected 5% down on the previous year.

Attributable production by region (000 oz)

REGION

2003

2002

South Africa

3,281

3,412

East and West Africa

981

1,085

South America

532

478

Australia

432

502

North America

390

462

Total

5,616

5,939

Distribution of wealth - 2003

Employees

44%

Providers of capital

19%

Reinvested in group

24%

State for taxes

10%

Other

Distribution of wealth - 2002

Employees

35%

Providers of capital

29%

Reinvested in group

22%

State for taxes

13%

Other

Gold production by region - 2003

South Africa

58.4%

East & West Africa

17.5%

South America

9.5%

Australia

7.7%

North America

6.9%

Gold production by region - 2002

South Africa

57.4%

East & West Africa

18.3%

South America

8.0%

Australia

8.5%

North America

7.8%

Economic performance

Review of 2003

EP5

Income generated by destination

Income of US$2,029 million was generated in the following regions during 2003. Information for 2002 (US$1,761 million) is provided for comparative purposes.

Distributions to employees (including executive directors)

Some US$660 million (equivalent to 44% of the value created by the group) was distributed to employees during 2003. (US$443 million or 35% in 2002). This may be analysed as follows:

Dividends

The following dividends were declared and paid during the 2003 financial year:

A dividend of R6.75 per ordinary share (82 US cents per share), declared on 30 January 2003 in respect of the second half of 2002, was paid on 28 February 2003. This amounted to a payment of R1.5 billion or US$183 million.

A dividend of R3.75 per ordinary share (51 US cents per share), declared on 30 July 2003 in respect of the first half of 2003, was paid on 29 August. This amounted to a payment of R836 million or US$113 million.

In addition, the following dividend has been declared in respect of the second half of 2003, was paid in the 2004 financial year.

A dividend of R3.35 per ordinary share (50 US cents per share) was declared on 29 January 2004 and was paid on 27 February 2004.

South Africa

27.8%

North America

13.4%

Australia

5.7%

Asia

6.0%

Europe

28.0%

United Kingdom

19.1%

South Africa

34.1%

North America

8.2%

Australia

8.2%

Asia

0.1%

Europe

24.8%

United Kingdom

24.6%

Salaries, wages and
other benefits

86.6%

Health care and
medical scheme costs

7.3%

Contribution to pension
and provident plans

5.5%

Retrenchment costs

0.6%

Salaries, wages and
other benefits

88.5%

Health care and
medical scheme costs

6.3%

Contribution to pension
and provident plans

4.5%

Retrenchment costs

0.7%

Gold income by destination markets - 2003

Gold income by destination markets - 2002

Employee benefits - 2003

Employee benefits - 2002

Dividends distributed to shareholders (US cps)

100

150

200

Economic performance

Review of 2003

EP6

Finance costs

Some US$49 million was paid in finance costs during the year (2002: US$44 million). A breakdown of this is shown below. Further details may be found in the

Annual Financial Statements

Capital expenditure

The group recorded significant capital expenditure during the year in order to sustain operations. This amounted to some US$363 million, up by 34% on the previous year.

Exploration activities continue

AngloGold's exploration programme supports the group's growth strategy by sustaining or growing existing operations (brownfields exploration) and trying to discover gold deposits in new areas (greenfields exploration). Exploration expenditure amounted to US$63.4 million in 2003.

See the

Annual Financial Statements

for a comprehensive review of

exploration

undertaken during the year.

Brownfields exploration is being undertaken on and around almost all of the group's existing operations. During the year, greenfields exploration took place in traditional areas such as Australia, Mali, Canada, Alaska, Peru and Brazil, as well as "frontier" areas in Mongolia.

(See map below)

Bank loans and overdrafts

Corporate bond

Other

Bank loans and overdrafts

Other

Capital expenditure 1999 to 2003 (US$ million)

100

150

200

250

300

350

400

Finance costs - 2003 (US$ million)

Finance costs - 2002 (US$ million)

Exploration expenditure - 2003 (%)

Greenfields

40%

Brownfields

60%

Brazil

Argentina

Serra Grande

Cerro Vanguardia

Morro Velho

USA

Cripple Creek

& Victor

Mali

Tanzania

Namibia

Geita

Sadiola

Yatela

Morila

Navachab

SA operations

South Africa

Boddington

Australia

Alaska

Canada

Peru

Sunrise Dam

Mongolia

Economic performance

GRI

EP7

Core indicators

EC1. Net sales

US$2,029 million in 2003 (US$1,761 million in 2002)

EC2. Geographic breakdown of markets

See page EP5 of this report

EC3. Cost of all goods, materials and services purchased

US$767 million in 2003. (US$611 million in 2002)

EC4. Percentage of contracts that were paid in accordance with agreed terms, excluding agreed penalty arrangements.

Information not collated at a group level.

EC5. Total payroll and benefits (including wages, pension, other benefits and redundancy payments) broken down by country or region.

US$660 million in 2003. (US$443 million in 2002). See page EP5 for more information.

EC6. Distribution of capital broken down by interest on debt and borrowings and dividends on all classes of shares, with any arrears of preferred dividends to be disclosed

See page EP6 of this report

EC7. Increase/decrease in retained earnings at the end of the period.

Retained income increased from US$7 million in 2002 to US$88 million.

Additional indicators

EC11. Supplier breakdown by organisation and country.

Information not collated at a group level.

5. Reporting in line with the Global Reporting Initiative (GRI)

DIRECT ECONOMIC IMPACTS

Customers

Suppliers

Employees

Providers of capital

Economic performance

GRI

EP8

Core indicators

EC8. Total sums of taxes of all types paid broken down by country

US$142 million was paid or set aside for taxation purposes in 2003 (2002:US$165 million).

EC9. Subsidies received broken down by country or region.

Information not collated at group level

EC10. Donations to community, civil society, and other groups broken down in terms of cash and in-kind donations per type of group.

See the

Community section

of this report.

Additional indicators

EC13. The organisation's indirect economic impacts.

Quantitative information not available at group level. See the Community section of this report for further information.

5. Reporting in line with the Global Reporting Initiative (GRI) (continued)

DIRECT ECONOMIC IMPACTS (continued)

INDIRECT ECONOMIC IMPACTS

Pubic sector

Economic performance

EP9

5. Objectives for 2004

AngloGold's focus on growing earnings is built on three core strategic objectives:

Leveraging assets

Driving the company down the cost curve through workplace restructuring, literacy training in South Africa and productivity improvements.

Growth

Successful merger with Ashanti Goldfields in 2004.

Value-adding organic growth via the completion of major capital projects.

Continued reserve growth from brownfields exploration around existing operations and discovering new production ounces targeted through greenfields exploration.

Marketing downstream

Focusing on active market support with a view to modernising the industry downstream to ensure a healthy customer base

Economic performance

Case studies

EP10

6.1 Meeting the equity component of the Charter

AngloGold was among the first of the established mining companies in South Africa to conclude black economic empowerment (BEE) transactions - well ahead of the body of legislation developed to compel, among other things, targeted levels of ownership of mining assets by the country's historically disadvantaged.

The first of these transactions took place early in 1998, when six of Vaal River's short-life shafts - Nos 1, 3, 4, 5, 6 and 7 - were sold to a BEE company, African Rainbow Minerals and Exploration (ARM), led by mining entrepreneur Patrice Motsepe. Part of the transaction involved a tribute agreement over the longer-life No 2 shaft, in terms of which ARM would mine No 2 shaft, with 60% of revenue, net of costs and capital expenditure, accruing to AngloGold.

The second empowerment transaction, which followed soon afterwards, involved the sale of six Freegold shafts - Western Holdings Nos 1, 2, 3, 4, 6 and 7 - and the old Welkom gold plant to ARM.

These two transactions formed the cornerstone of ARM, and were the basis for the listing of Armgold, a subsidiary of ARM and the first black-owned gold mining company to list on the JSE Securities Exchange South Africa in May 2002.

Then, in November 2001, AngloGold sold almost all of its other Freegold assets to an ARM/Harmony Gold Mining Joint Venture.

Explaining AngloGold's rationale at the time, Bobby Godsell, then both Chairman and CEO, said: "It is our objective to develop, acquire and operate long-life, low-cost, world-class gold mining assets and to close or sell mines approaching the end of their profitable lives to operators who are better suited to extracting value from such assets."

The ARM/Harmony JV, Godsell said, met two important criteria that AngloGold set regarding the transaction: one was to encourage the consolidation of ownership and management in the region; the other was to promote BEE.

"The transaction will allow for meaningful participation of previously disadvantaged groupings in both ownership and management of a substantial gold mining operation."

Later, reflecting on AngloGold's three BEE transactions and the requirements of the Mining Charter, Godsell noted that, while the effect was the disposal of about a quarter of the company's production ounces, "we haven't lost one cent in terms of value. There is no Father Christmas in this Charter, there's no giving things away".

In respect of ownership and joint ventures, the Charter's associated scorecard poses the question: Has the mining company achieved historically disadvantaged South African (HDSA) participation in terms of ownership for equity or attributable units of production of 15% in HDSA hands within five years and 26% in 10 years?

"We believe we are sufficiently compliant to enable us to make an application for the conversion of our current mining titles into new-order rights soon after the Minerals and Petroleum Resources Development Act is promulgated, probably in May 2004."

Economic performance

Case studies

EP11

6.2 Growing the market for gold

AngloGold believes that its business is gold, and that its role does not end when the gold has been mined and refined. The group recognises the need to participate in developing and stimulating the market for gold and is committed to fostering the development of a vibrant gold jewellery industry capable of sustaining strong physical demand for the metal. (Almost 80% of demand for gold comes from the jewellery industry). AngloGold spent US$19 million per annum on gold marketing initiatives - on its own and through the World Gold Council.

The group's marketing initiatives include:

Promoting excellent gold jewellery design. This is an important element in ensuring the continued appeal of the metal. Among the initiatives undertaken are the sponsorship of several gold jewellery design competitions around the world, including the Riches of Africa in the South Africa and the Brazilian Design Forum.

Innovation in the beneficiation of gold. Central to this has been the group's 26.6% stake in OroAfrica, the largest manufacturer of gold jewellery in South Africa. Other beneficiation initiatives focus on assisting previously disadvantaged jewellery manufacturers to enter into the mainstream through sponsoring training, design facilities, marketing and logistical support (See section on ADJO). A partnership with Rand Refinery and the Spatial Development Initiative Programme of the Department of Trade and Industry to establish the Gold Zone at Rand Refinery will see AngloGold contributing a training centre for disadvantaged South Africans who aspire to become jewellers and a jewellery hive to enable newly skilled and talented goldsmiths to set up their own gold ventures.

Preserving Africa's gold heritage. Since the launch of the Gold of Africa Museum in Cape Town in 2002, this has become a popular landmark for tourists and locals alike. The museum presents a collection of historical gold objects from West Africa and shows the creative goldsmithing skills through the ages. The heart of the museum is the permanent exhibition of one of the largest and most important collections dedicated to the art and craft of the African goldsmith - the famous Barbier-Mueller Collection comprising over 350 gold artifacts and jewellery from the 19th and 20th century from Mali, Senegal, Ghana and the Cote d'Ivoire. The museum also houses a Working Studio, where training courses are offered in the techniques and artistic heritage of the African goldsmith.

Promotion of gold through the AngloGold jewellery collection. As a result of many of its initiatives AngloGold owns one of the world's largest all-gold, high-caratage jewellery collections that are representative of innovative design and manufacturing techniques from around the world. This collection is used extensively at both fixed exhibitions and prestigious events to showcase gold jewellery.

Riches of Africa Gold Jewellery Design Competition

Since its inception in 1999, AngloGold's South African jewellery design competition - Riches of Africa - has become a highlight on the local jewellery calendar. The competition, which attracted 204 entries in 1999, attracted some 1,100 entries in 2003. The competition is open to both professionals and non- jewellers, and now includes the use of white and rose gold as well. International judges have been added to the local line-up and finished pieces are judged according to a range of criteria, including originality, feasibility and functionality, aesthetic impact, quality of manufacture and visual impact. Workshops are held for all entrants on design and goldsmithing techniques.

AngloGold sponsors all the gold for the competition and awards prizes to the overall winners. More than that though the winners and their pieces are actively promoted by taking each collection on an exhibition tour, both nationally and internationally.

A new approach introduced in 2003 was the Riches of Africa Pret-a-Porter range, which represents jewellery for everyday wear. See the AngloGold website for further information on the Riches of Africa competition.

Designer John Louw's 18 carat neckpiece of 24

dragonfly wings was the overall winner in the Riches

of Africa Design Competition 2003.

Economic performance

Case studies

EP12

Brazilian Designer Forum

AngloGold sponsors a jewellery design competition in Brazil every second year called the "Designer Forum". The competition has a strong commercial focus on making innovatively designed jewellery more accessible to consumers. The 2002 winning collection travelled around Brazil and 10 selected pieces were shown at an exhibition in Rome.

Sponsoring young disadvantaged designers

As part of AngloGold's programme to assist aspirant jewellers from previously disadvantaged communities, AngloGold sponsored seven young designers to produce a collection of gold jewellery reflecting the spirit of Africa and exhibited their jewellery in London in August 2003. The African Designer's and Jeweller's Organisation (ADJO) identified the young designers.

Supporting the World Gold Council

AngloGold contributed US$10.5 million to the World Gold Council (WGC) in 2003 in support of its initiatives and to facilitate and support its own international gold marketing projects.

Founded in 1987, the WGC is funded by some of the world's leading gold producers and aims to situate and maximise the demand for and holding of gold by consumers, investors, industry and the official sector. As well as undertaking marketing initiatives to drive demand, the WGC is also instrumental in working to lower regulatory barriers to the ownership of gold products, helping to improve distribution systems and promote the role the role of gold as a reserve asset in the official sector.

Designer Pitti Paludo has captured the essence of an

authentic Brazilian product and elevated it into fine

gold jewellery. This pair of 18 carat gold sandals was

a winner at the Brazilian Design Forum 2002.

Lee Tau designed a Traditional Gold Bead Collection,

inspired by the beadwork of the Ndebele culture.

These pieces form part of the 2003 ADJO collection.

Useful gold websites:

www.anglogold.com

www.gold.org (World Gold Council)

www.goldofafrica.com (Gold of Africa Museum)

www.oroafrica.co.za (OroAfrica)

Ama Abrafi with exhibits from the Gold of Africa Museum collection.

EG1

Ethics and governance

Contents

Ethics and governance

....................................................

EG1

Business principle:
AngloGold and ethics

........................................................

EG2

1. Key indicators

.................................................................

EG3

2. Milestones - 2003

.........................................................

EG3

3. Review of 2003

..............................................................

EG4

4. Reporting in line with GRI

..............................................

EG5

5. Objectives for 2004

.......................................................

EG6

6. Case study

....................................................................

EG7

6.1 The whistle-blowing process at AngloGold

.......................

EG7

The key financial indicators are extracted from the Audited Annual Financial Statements for the year ended 31 December 2003.

Ethics and governance

Business principle

EG2

Business principle: AngloGold and ethics

Should laws and regulations be non-existent or inadequate, we will maintain the highest reasonable regional standard for that location.

We will not offer, pay or accept bribes, nor will we condone anti-competitive market practices and we will not tolerate any such activity by our employees.

We prohibit our employees from trading shares when they have unpublished, material information concerning the company or its operations.

We are committed to seeking out mutually beneficial, ethical long-term relations with those with whom we do business.

The company will take the necessary steps to ensure that all employees and other stakeholders are informed of these principles.

Ethics and governance

EG3

1. Key indicators

AngloGold's practices and policies remain largely in compliance with the values enshrined in the King Report on Corporate Governance (2002) and the US Sarbanes-Oxley Act, and management continues to address key areas where new governance requirements arise.

The board comprises 14 directors with 10 non-executive directors, five of whom are independent as defined in the JSE Securities Exchange Listings Requirements.

Adoption of business principles that incorporate a mission statement and values of the company.

2. Milestones - 2003

Sections of AngloGold's first Report to Society were assured by independent external auditors, PricewaterhouseCoopers (PWC) in 2003.

Key

directors' policies

were adopted during the year.

Responsibility for corporate governance was assigned to the renamed Audit and Corporate Governance Committee.

A board Nominations Committee was appointed during the year.

A confidential reporting policy (the whistleblower's policy) was adopted.

A compliance manager to oversee the corporate governance discipline within the group was appointed in 2003.

The AngloGold Board adopted a policy on party political donations, which was announced on 1 December 2003. In seeking to play a part in supporting democracy in South Africa, AngloGold decided to distribute a total of R3.2 million towards political parties participating in the elections in 2004. The announcement and board policy can be found on the AngloGold website.

Composition of the AngloGold board

Executive

29.0%

Non-executive

35.5%

Non-executive, independent 35.5%

Ethics and governance

EG4

3. Review of 2003

An extensive discussion of the corporate governance discipline and risk factors within the group is provided in the Annual Financial Statements 2003, which is available from the company website at www.anglogold.com. AngloGold's corporate governance guidelines incorporating the board charter, business principles, code of ethics for financial officers, board committees' terms of references and key policies of the company, is also available from the company website.

During the year the board resolved to place the corporate governance discipline within the mandate of its audit committee. The committee has been renamed the Audit and Corporate Governance Committee and comprises solely independent non-executive directors. The board also formally appointed a Nominations Committee, comprising a majority of independent directors and chaired by the board chairman, to advise it on selection criteria and assess candidates for appointment to the board.

Key policies adopted by the board during the year under review are: directors' professional advice policy, director's fit and proper standards, and an induction policy for new directors. The induction programme for new directors will be finalised during 2004.

A confidential reporting policy was also adopted by the board to provide a mechanism for the reporting of unethical or illegal activities occurring within the group. The policy provides for the reporting to be made to the group internal audit manager, who is functionally and administratively independent of management, and provided it is made in good faith, protects whistle-blowers from suffering any adverse consequences arising out of making such reports. (See case study on page EG7)

Ethics and governance

In line with GRI

EG5

4. Governance structure and management systems

Structure and governance

3.1 Governance structure of the organisation, including major committees under the board if directors that are

responsible for setting strategy and for oversight of the organisation.

See pages 42 to 66 of the

Corporate Governance

section of the Annual Financial Statements.

3.2 Percentage of the board of directors that are independent, non-executive directors.

See page EG3 of this Report and pages 42 to 46 of the

Corporate Governance

section of the Annual Financial

Statements.

3.3 Process for determining the expertise board members need to guide the strategic direction of the organisation,

including issues related to environmental and social risks and opportunities.

See pages 42 to 66 of the

Corporate Governance

section of the Annual Financial Statements.

3.4 Board level process for overseeing the organisation's identification and management of economic,

environmental, and social risks and opportunities.

See pages 49 to 60 in the

Corporate Governance

section of the Annual Financial statements for a comprehensive

discussion on Risk management and internal control.

3.5 Linkage between executive compensation and achievement of the organisation's financial and non-financial

goals.

See

Remuneration report

on page 63 of the Annual Financial Statements.

3.6 Organisational structure and key individuals responsible for oversight, implementation, and audit of economic,

environmental, social and related policies.

See pages 42 to 66, the

Corporate Governance

section of the Annual Financial Statements, for a comprehensive

discussion, pages 37 to 38 for a description of

Directors and executive management

and pages 66 to 75 for the

Directors' report

3.7 Mission and values statements, internally developed codes of conduct or principles, and policies relevant to

economic, environmental, and social performance and status of implementation.

See

mission and values

3.8 Mechanisms for shareholders to provide recommendations or direction to board of directors.

See discussion on communication with shareholders on page 61 of the

Corporate Governance

section of the Annual

Financial Statements.

Ethics and governance

EG6

5. Objectives for 2004

AngloGold strives to achieve the highest standards in corporate governance and some of its goals during 2004 are:

Development of strategy for board and director's appraisals.

Development of a web-based corporate governance and compliance site for employees.

Formal adoption of terms of reference of a Disclosures Committee to oversee the timely, accurate, reliable and material disclosure of company information to regulatory bodies and other stakeholders.

Ethics and governance

Case studies

EG7

6.1 Keeping it clean - the whistle-blowing process
at AngloGold

AngloGold has introduced a confidential reporting process - or, to put it more colloquially, "whistle-blowing".

The purpose is to provide a channel for shareholders, the public and employees to report:

practices that are in conflict with AngloGold's business principles;

unlawful conduct;

financial malpractice; or

dangers to the public or the environment.

Framed against the requirements of South Africa's King Report on Corporate Governance (2002) and Protected Disclosure Act, as well as the United States' Sarbanes-Oxley Act, the AngloGold process applies to all companies in the AngloGold Group.

Practically, it means that anyone who believes that they have information regarding crime or irregularities in any of AngloGold's workplaces, can report these internally, in confidence, independent of management, and anonymously if they so wish.

A variety of methods are available:

telephone;

fax;

e-mail;

intranet; or

letter

Provided that informants act in good faith, they are protected. If, however, they act maliciously, knowing that the information they have disclosed to be untrue, they are not.

Employees acting in good faith, for example, cannot lose their positions or suffer any form of harassment or occupational detriment, even if subsequently it is found they are mistaken.

AngloGold's Group Internal Audit Manager, Hester Hickey, is the custodian of the whistle-blowing process. She is independent of the conventional AngloGold hierarchy and reports to the Board Audit Committee, which is composed of non- executive board members.

Any one found to be in breach of any laws or policies faces one or a range of actions, including:

a warning;

suspension;

dismissal; and

criminal charges.

"The purpose of whistle-blowing is not to investigate the reporter but rather, the actual disclosure," Hester explains. "The spirit and intent of the process, I think, is well captured in the catchphrase we have coined to promote it: `We want their names, not yours'."

AngloGold in the community

Contents

AngloGold social responsibility and community

..............

Business principle: AngloGold in the community

..................................................

1. Key indicators

....................................................................

2. Milestones - 2003

..............................................................

3. Policy

..........................................................................

4. Review of 2003

...............................................................

5. Reporting in line with GRI

................................................

6. Objectives for 2004

........................................................

C10

7. Case studies

South Africa

7.1 Contributing to communities in need - the work of the

AngloGold Fund

..........................................................

C11

7.2 Small and Medium Enterprise Development Initiative

..............

C15

7.3 Carletonville Home and Community Based Care

......................

C17

East and West Africa

7.4 Resettling a village - the stories of Sadiola

and Farabakouta

.........................................................

C19

7.5 Community development initiatives at Sadiola and

Yatela gold mines

......................................................

C21

7.6 Climbing Kilimanjaro - an AIDS initiative at Geita

................

C24

South America

7.7 Reaching out from Morro Velho

.......................................

C26

Australia

7.8 Partnerships that work - AngloGold Australia

and Carey Mining

........................................................

C28

7.9 Developing the local Balgo community at Tanami

................

C29

North America

7.10 Serving the community - the CC&V

volunteer programme

.................................................

C30

Exploration

7.11 Making a difference - the Lotus Children's Centre in Mongolia

C31

AngloGold in the community

Business principle

1. Business principle - AngloGold in the community

We will strive to ensure that surrounding communities are timeously informed of, and where possible, involved in, developments which affect them, throughout the life cycle of our operations.

The company will encourage its employees to make themselves available for participatory and leadership roles in community activities.

We will seek to acquire and use land in a way which promotes the broadest possible consensus amongst interested people. Where involuntary resettlement is unavoidable, we will abide by appropriate guidelines for resettlement, where they exist, and in any event will work with the local communities to develop workable plans for any resettlement which may be necessary.

We will strive to contribute to the sustainable economic development of host communities through procurement activities; the contribution of redundant assets to the community; assistance in the establishment and growth of small to medium sized sustainable enterprises; and the outsourcing of goods and services from local vendors where appropriate.

AngloGold in the community

While AngloGold's social investment initiatives stretch back over many years the company is in the process of managing these activities in a more integrated manner. During the year:

The group identified its key values, including its impact on communities;

The Board sub-committee on Safety, Health and Environment extended its ambit to include Safety, Health and Sustainable Development;

For the first time, a group-level Social Development Manager was appointed; and

Reporting to the Board sub-committee in line with the global business principles has begun. However, because the reporting and the gathering of data and information in this way at a group level is still in its infancy, this section has not been audited this year. The requisite systems will be in place to enable an audit in 2004. It should be noted, however, that the expenditure at an operational level forms part of the annual financial audit of operations and that the AngloGold Fund (which represents the majority of social responsibility spending by the group) is independently audited. Also, many of the projects supported are themselves audited on an individual basis.

2. Key indicators

Social investment initiatives have been put in place at all AngloGold's regions, with reporting according to business principles at regular Board sub- committee meetings, under the co-ordination of the Social Development Manager.

3. Milestones - 2003

The adoption by the Board sub-committee on Safety, Health and Sustainable Development of the AngloGold business principles as the basis for AngloGold's social investment philosophy.

The appointment of a Social Development Manager for the group as a whole.

Australia

Recognition Award in Resource Development for Community Relations from the Northern Territory government for the provision of training, employment and other practical support to communities which has provided opportunities for local people and resulted in greater mutual understanding.

AngloGold and its partner, Carey Mining, were recognised at the Best New Sponsor in the State Arts Sponsorship Awards for the partnership with the Art Gallery of Western Australia to provide the newly created position of Indigenous Education Officer.

East and West Africa

The establishment of a community association at Morila, as the forerunner to a Community Foundation with the goal of being sustainable after mine closure. The mine has donated US$500,000 to start up the fund.

Continued success of the micro-economic development initiatives at Geita, Sadiola and Yatela, where 72, 83 and 20 loans, worth US$30,000, US$72,000 and US$20,571 respectively have been granted to date to viable entrepreneurial and community initiatives.

Social investment spending per region

2003

South Africa

R25,799,051

East and West Africa

US$530,923

South America

US$977,720

Australia

A$106,150

North America

US$214,881

AngloGold in the community

South Africa

The AngloGold Fund's contribution of some R15.5 million in 2003 to 104 projects across southern Africa.

The ongoing contribution to the Business Trust of R10 million in 2003. The Trust is an initiative of 145 South African companies whose primary focus is job creation and capacity building programmes. Its strategy is to focus on tourism for job creation and schooling for capacity building and this is underpinned by support for programmes that address critical impediments, for example crime, combating malaria and stimulating the tourism sector.

The involvement of AngloGold's Small and Medium Enterprise Development Initiative (SMEDI), since its formation in 1998, in the setting up of small businesses with an accumulated turnover of more than R500 million, and the creation of jobs for some 3,000 people.

North America

The Pikes Peak Regional Medical Centre, obtained a grant of US$600,000 for the centre, following a seed donation from AngloGold.

Ongoing volunteerism programme - Some 4,884 hours were sponsored by the company and provided by employees towards social and community development initiatives.

South America

Social investment spending in South America went from strength to strength during 2003, with a total of US$977,720 going toward community based, educational, health, environmental and sporting initiatives in the communities around the operations.

3. Policy

The Board sub-committee on Safety, Health and Sustainable Development adopted the

business principle

, AngloGold in the community, as the basis for

AngloGold's social investment initiatives. All regions are required to report to the board on a quarterly basis.

AngloGold in the community

Review of 2003

4. Review of 2003

Structure and governance

Social responsibility and community initiatives are an integral part of AngloGold's business, from exploration, to operation and closure. These initiatives are managed in a variety of ways, depending on the region of operation, the stage of the project and the nature of the intervention. Management of these initiatives is primarily a line function, best undertaken in the region of operation. The exception to this is the work of the AngloGold Fund which is managed by Tshikululu Social Investments (TSI), a non-profit non-governmental organisation (NGO) on behalf of AngloGold, and directed by a board of trustees chaired by an AngloGold representative. A management fee of R1,961,719 was paid for their services during 2003. The appointment of a Social Development Manager in 2003 will see greater co-ordination and reporting on social responsibility and community issues in the future. These issues are recorded and monitored at the Board sub-committee on Safety, Health and Sustainable Development. This committee comprises Non-executive Director Bill Nairn (chairman), Deputy Chairman, James Motlatsi and CEO Bobby Godsell.

In South Africa, where the greatest proportion of the company's operations and employees are based, AngloGold's corporate social investment programme is directed by the AngloGold Fund and Trust.

(See case study on page C11)

. The fact

that about 70% of the projects supported by the Fund fall within the educational sector, reflects the company's response to the development priorities of the region. Over and above these activities, the company's operations play a significant role in community social development, the provision of infrastructure, governance and support at a local level.

Another major challenge, particularly in South Africa, is that of the HIV/AIDS epidemic. AngloGold's response to the epidemic is an holistic one, embracing local communities where possible. To this end, significant and increasing social responsibility expenditure is devoted to this cause.

(See section on HIV/AIDS).

In Namibia, Mali and Tanzania, social investment is managed at country and operational level through appropriate structures at each operation, with mine management participation. All these structures aim to address specific community needs through extensive consultation, and have generally agreed to support initiatives in the health, education and agricultural spheres in keeping with the regional and national development priorities of these countries.

Projects address issues such as infrastructure development (roads, water pipelines, sanitation), the construction of buildings (hospital wards, schools and community centres), small business ventures and entrepreneurship. Malaria prevention and management are also important in this region.

In South America, community-based initiatives are focused on the educational, health and environmental sectors.

(See case study on page C26)

Social investment contributions in Australia are made in areas such as health care, education and training and the environmental spheres. A programme to foster cross-cultural awareness and respect is another initiative funded by the company.

In North America, AngloGold personnel are involved in community initiatives, and encouraging economic diversity and strengthening the post-mining sustainability of local mining-dependent activities.

AngloGold in the community

Review of 2003

The 2003 year is reviewed according to the main elements of the business principles below.

Impact on people, cultures and communities

AngloGold is committed to having a positive impact on the people, cultures and communities in which it operates. Accordingly, AngloGold endeavours to be respectful of local and indigenous people, their values, traditions, culture and the environment. A good example of this philosophy is the Community Policy that has been developed by AngloGold Australia.

(See policy on the right)

This philosophy is also illustrated by the relationship between AngloGold and the communities surrounding the East and West Africa region's Sadiola and Yatela operations in Mali.

(See case study on page C21)

Involvement of communities

A key commitment made by the company articulated in its business principles is that it will strive to ensure that surrounding communities are timeously informed of, and where possible, involved in, developments which affect them. This is obviously most pertinent with new operations and during times of expansion and closure but, where possible, this interaction should be maintained throughout the lifecycle of operations.

An example of this is the Harry Oppenheimer Environmental Centre in Nova Lima, Brazil, South America, which not only provides a place of leisure for surrounding communities, but also informs employees and the communities about mining, and its broader impacts.

(See case study in Environmental

section of this report

Another example is the development of a stakeholder management plan at Sunrise Dam, Australia, which outlines the procedures for managing public relations and the strategies and communications and consultation with key stakeholders. A key stakeholders register and list of major stakeholders associated with Sunrise Dam has been established.

At the East and West African operations, it is standard practice for the General Manager to meet with interested parties on a monthly basis. At Morila, a quarterly social event - usually sport or cultural - is organised between the mine and the community in addition to the monthly management meeting with community leaders. At all the Malian operations, regular visits to the mines are held for members of the local community, at which a thorough briefing is given on the business.

The South African operations have set the objective of a monthly interface with local authorities to align both development and service delivery. Quarterly roadshows by the South African executive team to communicate the performance of the operations on economic indicators and broader community issues are held. Other initiatives include the donation of a number of recreational facilities and land for residential development to local councils and the ongoing involvement of AngloGold's Asset Protection Services in Community Policing Forums to ensure on-the-ground interaction with local community structures.

In South America, government authorities and opinion formers are invited to a regular lunch at Morro Velho, for an update on developments at the operation and the potential impact this will have on the community.

Social investment initiatives

AngloGold ensures that social investment initiatives are undertaken in the areas of need where the group can make a practical and meaningful contribution. In particular, AngloGold contributes to those areas of education and health care which are relevant to its business activities and those most likely to be sustainable once its operations have ceased in that community.

AngloGold Australia - Community policy

AngloGold Australia is committed to the principle that:
Long-term relationships and partnerships will be fostered with the communities in which we operate through mutual understanding, co-operation, consultation and respect. Our social investment initiatives deliver meaningful and lasting benefits to employees, the community and key stakeholders.

To achieve this we will: ·

Recognise and respect the value of cultural heritage and cultural diversity;

Develop and establish positive community relationships based on honesty, integrity and mutual trust;

Solicit guidance and input from surrounding communities in business development strategies;

Encourage local participation in employment opportunities, where appropriate;

Seek consensus between participating stakeholders in issues of land management;

Conduct stakeholder surveys of AngloGold performance on community support and interactions;

Support the development and implementation of sustainable social and economic initiatives within the communities in which we operate;

Provide management systems to identify, assess, monitor and control existing and potential impacts on communities;

Provide programmes to ensure that employees are aware of and sensitive to the requirements of this policy.

Barrie Parker
Operating General Manager
Date: October 2003
Review date: 1 October 2005

AngloGold in the community

Review of 2003

A prime example of this is the role played, and the work done by, the AngloGold Fund in South and southern Africa. The work of the Fund is aimed at addressing those areas of need both in the mining communities surrounding its operations as well as those areas from which its employees are drawn.

The company aids the initiatives of people who, with hard work and dedication, seek to contribute towards the broader welfare of their society. During 2003, the Fund contributed R15.5m to 104 projects, across southern Africa. The Fund supports people and organisations striving to make a real difference in their communities. In this way, AngloGold reaches those who have been marginalised from mainstream society. The Fund's main areas of activity are broadly defined as education, community health, job creation, skills development and entrepreneurship, community upliftment and welfare initiatives.

But social responsibility does not only apply in those countries with existing and long-standing operations. AngloGold's exploration employees are encouraged to identify areas of need in the communities in which they are prospecting for gold, and to contribute in a host of ways. As a result of an initiative by two AngloGold expatriate employees at the Lotus Children's Centre in Ulan Baatar, in Mongolia, AngloGold Australia has undertaken to support the centre on an ongoing basis and to provide volunteer services. This centre currently supports 115 homeless children with food, education and accommodation, as well as providing a refuge centre and soup kitchen for the local community in Yarmeg.

(See case study on

page C31)

Participatory and leadership roles in community activities

AngloGold encourages its employees to make themselves available for participatory and leadership roles in community activities. The most structured volunteerism programme exists in the North American region where 30% of eligible employees (91 people) each volunteered on average 54 hours for community service during the year.

(See case study on page C30)

Other examples include the Kilimanjaro expedition undertaken at the East and West Africa region's Geita mine where groups of employees, including the Mine Manager, climbed the nearby mountain - the highest peak in Africa - to create AIDS awareness and to raise funds for treatment and services. During 2003, the group was accompanied by two HIV-positive individuals.

(See case study

on page C24)

A pilot Employee Involvement Scheme is currently being developed at the Corporate Office and at site level in South Africa. AngloGold employees are already represented on a wide range of community and governance structures, ranging from NGOs, community-based organisations (CBOs) to school governing bodies and religious institutions. An example is the contribution made by Dr Petra Kruger, Manager of AngloGold's HIV/AIDS programme and the Carletonville Community Centre.

(See case study in AIDS section of the report)

Over and above her involvement in the project as a result of AngloGold's support for it, Dr Kruger has taken on the role of Chairman of the Board of Trustees.

(See interview on page C17)

Working with communities on land and resettlement

AngloGold has undertaken to acquire and use land in such a way that it promotes the best possible consensus amongst interested people. Where involuntary resettlement is unavoidable, the group will abide by appropriate guidelines for resettlement where they exist and in any event will work with the local communities to develop workable plans for any resettlement that may be necessary.

A prime example of this was the relocation of three villages in Mali. The relocation of the Sadiola village in 1999 and the Farabakouta village in 2000 at Sadiola involved the movement of 1,500 and 550 people respectively. The cost

AngloGold in the community

Review of 2003

of the relocation was about US$5.5 million

(See case study on page C19)

. The

Niambalouma village at the Yatela mine, with 109 inhabitants, was relocated at a cost of some US$400,000. In keeping with best practice, World Bank guidelines on involuntary resettlement were followed.

Contributing to sustainable economic development of host
communities

A fundamental philosophy of AngloGold's activities is that the group should contribute to the sustainable economic development of host communities through procurement activities, the contribution of redundant assets to the community, assistance in the establishment and growth of small to medium- sized sustainable enterprises, and the outsourcing of the provision of goods and services to local vendors where appropriate.

AngloGold Australia's partnership with Carey Mining has been used by the Federal Government's Department of Industry, Tourism and Resources as a case study under its Working in Partnership - the mining industry and indigenous communities programme.

(See case study on page C28)

Various forms of micro-economic development initiatives are delivering meaningful opportunities for economic activity in the East and West African region.

The Nyakabale Community Agro-forestry project at the Geita Gold Mine in Tanzania is an example, where 48 farmers from the community are engaged in supplying 65% of the fresh fruit and vegetable supplies to the mine while at the same time developing a cash crop that will sustain the community once mining has ceased.

(See case study in the Environment section of this report)

In South Africa, enterprise development is run under the auspices of the Small and Medium Business Development Initiative (SMEDI), in conjunction with the Masakhisane Investment Fund. Since inception in 1998, SMEDI-operated companies have accumulated a turnover of R560 million; a total of 3,094 job opportunities having been created.

(See case study on page C15)

Micro-economic development initiatives
in East and West Africa

At Morila mine in Mali, 50% of the proceeds made from the sale of scrap metal from the mine are paid into a community fund, managed by a local community committee. The first project implemented was a cereal bank, which entails the purchase and storage of bulk cereal. This cereal is sold back to the community and has been of particular benefit during times of drought.

At Geita mine in Tanzania, a micro- finance credit scheme in association with an NGO called Poverty Africa has granted 72 loans - averaging US$416 each - to individuals from the local community for small business creation, including the Nyakabale Agro-Forestry project.

(See case study in the
Environment section of this report).

At Sadiola mine in Mali a micro-credit scheme was implemented in 1999 for the development of small businesses. To date, 83 loans have been granted at an average of US$868 per loan. 30% of the loans have been fully repaid.

At Yatela mine in Mali, a micro-credit scheme implemented in 2000 has granted 20 loans to date, at an average value of US$1,029 per loan. 50% of the loans have been fully repaid.

AngloGold in the community

GRI

Core indicators

SO1. Description of policies to manage impacts on communities in areas affected by activities, as well as description of procedures/programmes to address this issue, including monitoring systems and results of monitoring. Include explanation of procedures for identifying and engaging in dialogue with community stakeholders.

See discussion on page C2 to C8.

Additional indicators

SO4. Awards received relevant to social, ethical, and environmental performance.

See discussion on page C2 to C8.

5. Reporting in line with the Global Reporting Initiative (GRI)

Social Performance Indicators: Community

AngloGold in the community

Objectives for 2004

C10

6. Objectives for 2004

Further implementation and monitoring of social development initiatives in line with business principles.

Development of a common basis for reporting regularly in line with these principles.

AngloGold in the community

Case studies

C11

South Africa

7.1 Contributing to community development - the work of the AngloGold Fund

AngloGold employs some 39,562 people in South Africa which in itself has an enormous socio-economic impact on the communities and regions in which it operates and indeed on the country itself.

The company aids the initiatives of people who seek to contribute towards the broader welfare of their society, primarily under the auspices of the AngloGold Fund. Established following AngloGold's formation in 1998, it undertakes the company's social responsibility activities, and provides support for sustainable community initiated projects, that contribute to their longer-term well-being and development.

During 2003, the Fund contributed R15.5 million to 104 projects, both large and small, across southern Africa. Although the Fund supports projects that have a national impact, the focus is on those regions and communities in which the company operates or has a major impact. For example, some 60% of funding went to the Eastern Cape, an area from which the company traditionally draws much of its workforce.

The experience gained in administering grants on this scale has led to further activities by the AngloGold Fund. This involves more pro-active work identifying appropriate areas of intervention where the Fund takes the lead in bringing tailor-made development programmes to life. Such opportunities arise out of the extensive hands-on learning that the Fund has developed. Programme development and management introduces exciting new ways for the Fund to add value to the development process. Programmes are focused on delivery while the Fund manages multi-stakeholder partnerships to secure defined development objectives.

The Fund backs and supports people and organisations who make a real difference to their communities, and who are helping themselves to improve their circumstances. The main areas of activity are broadly defined as:

Education. This is the largest area of support, reflecting the greatest area of need in the country and the region. Funds are allocated to the infrastructural needs of rural schools, effective school interventions and towards programmes making a positive impact on education in general. A large proportion of these go towards the rural schools programmes.

Health/AIDS. Funding is provided to hospices, homes for AIDS orphans and TB sufferers and effective HIV/AIDS awareness programmes.

Welfare. Welfare funding focuses on children and the elderly.

Rural and community development. This involves projects focused on rural development, women and children, particularly grassroots projects that assist rural and peri-urban communities in achieving economic independence.

Provincial giving by number of
grants (2003) Total = 104

Eastern Cape

35%

Gauteng

30%

North West

21%

Western Cape

Outside South Africa

Free State

KwaZulu Natal

National

Provincial giving by value of
grants (2003) Total = R15.5 million

Eastern Cape

59%

Gauteng

17%

North West

12%

Western Cape

KwaZulu Natal

Outside South Africa

Free State

National

Sectoral giving by number
of grants Total = 104

Education

43%

Welfare and development 26%
AIDS

10%

Skills and training

Health

Area committees

Arts and culture

Sectoral giving by value of grants
Total = R15.5 million

Education

65%

Welfare and development 10%;
Skills and training

10%

AIDS

Health

Area committees

Arts and culture

AngloGold in the community

Case studies

C12

Ginsberg Primary

A new double-storey classroom block was officially handed over to the Ginsberg Primary School, an independent Seventh Day Adventist school situated in Ginsberg, King William's Town, by the AngloGold Fund in April 2003. The township of Ginsberg is the birthplace and final resting place of Steve Biko.

Established in 1956, Ginsberg Primary School today has 150 learners in its pre-school and 310 learners in grades 1 to 7. The reputation of the school is such that, each year, many applicants have to be turned away.

Apart from music and needlework, the school offers art, technology and gardening as extra-mural activities. Pupils who take gardening are able to grow vegetables on the premises and these are sold to raise funds for the school. Cricket, soccer, netball and softball are the sports that are provided.

Ginsberg Primary School's new block, which was built with a grant of R1.2 million from the AngloGold Fund, comprises four regular classrooms and four "special" classrooms - a science laboratory, a computer room, a music room and a needlework room - designed to enhance and enrich the learners' education.

The Principal, Henry Kachoka, explains, "Our philosophy is that we want our learners to be given an holistic training that attends to their physical, mental and spiritual development and that will enable them to lead useful lives in society.

Since the school introduced needlework in 2000, educators have had to manage with just two sewing machines in crowded classrooms. The new needlework facility is equipped with 21 sewing machines and two overlockers.

Music was started in 2001 with one violin and one piano in the principal's office. Today, the music room has pianos, violins and cellos and it is the ambition of the staff to establish a school orchestra.

Until the building of the new block, learners had no access to computers while science was taught without the necessary apparatus.

"The new building is a beacon of hope to those of us involved in teaching here. Our learners are being given the privilege of an education that they wouldn't otherwise get in this part of the world," Mr Kachoka said.

And it is not only the learners of the school who will benefit from the additional facilities. For a modest fee, members of the community will be able to access these in the afternoons when staff members will be on hand to assist.

Students outside the double-storey classroom block handed over by the AngloGold Fund in April 2003 to the Ginsberg Primary School in King William's Town.

AngloGold in the community

Case studies

C13

Rural Schools Initiative

AngloGold has, for many years, been involved in the Rural Schools Initiative which has overseen the building of classrooms in some of the most remote and needy communities in southern Africa. Over the past five years some R10 million has been spent on this initiative alone, resulting in the construction of about 239 classrooms, at 71 schools, and touching the lives of more than 30,000 learners.

In 2003, the Fund initiated a partnership with the Department of Education in the Eastern Cape in the implementation of the programme. The purpose of the partnership is to ensure that the programme is in line with overall provincial priorities, and addresses those schools most in need in respect of over-crowding.

This partnership will see the construction of 27 classrooms in the Bizana region by May 2004. AngloGold has contributed R4 million to this project and the Eastern Cape Department of Education has committed another R4 million. In addition to the funding, the project has appointed a Social Facilitator, who plays an important role in addressing community concerns relating to the construction process and who ensures that the needs of the community are addressed.

In terms of the agreement reached with the Department, the following has been agreed as an integral part of the partnership:

The Fund will implement the programme in areas where the company draws most of its labour;

The programme each year will be funded on a 50/50 basis between the Fund and the department;

One department has undertaken to ensure that all classrooms built have sufficient teachers;

All classrooms built by the Fund will be furnished adequately; and

The programme will be jointly managed by the Fund and the department, and a special task team comprising of representatives from both parties has been established.

The benefits of this partnership for the Fund is the guarantee of the speedy delivery of quality classrooms in areas most in need. The partnership is not only based on financial contribution, but also on the sharing of expertise and experience. This has opened new opportunities for the Fund to demonstrate its value add and to both understand the priorities and challenges of the Department of Education. In 2003 the value of the programme amounted to R8 million, with R4 million coming from the Department of Education.

AngloGold in the community

Case studies

C14

Goldfields Hospice

Based in the town of Welkom, where AngloGold had operations for many years, the hospice was established in 1987 to provide a range of services, including community-based home-care to terminally ill patients. Increasingly, over the past few years, the focus has been on people with AIDS. AngloGold has provided a three-year grant (R150,000 per annum from 2002 to 2004) towards the operating costs of the hospice.

Khululeka Community Education Centre

Based in Queenstown in the Eastern Cape, the Khululeka Community Education Development Centre was established in 1989 and is one of the best early childhood development training organisations in the region. Khululeka has established very effective partnerships with local government structures in the provision of training and support for educare workers in the rural Eastern Cape.

It is managed by a team of highly experienced and committed individuals which has, over the years, developed both innovative and practical programmes to address a lack of skills at pre-school levels, and has trained more than 3,000 teachers since inception. The training involved is focused not only on teachers' training skills, but also on empowering them with basic management skills, improving their literacy skills and instructing them on how to make educational aids from waste material. In fact, materials developed by Khululeka for its community-based programmes are used by other NGOs in the province which do not have the human resource and infrastructural capacity to develop their own materials.

AngloGold has had a long association with this initiative and, in 2003, contributed R250,000 towards the training programme.

Winterberg Schools Trust

The Winterberg Schools Trust was established in 1991 to address the educational and social needs of the community of Winterberg, a farming district, close to the town of Tarkastad in the Eastern Cape. This area covers about 1,000 km

, with

32 farms and a population of about 1,000 people.

The Fund's involvement stretches back to 1998 and, more recently, a three-year grant of R100,000 was approved.

The original Trust Committee consisted of three farmers and six farm employees who were elected by the community. They were tasked with finding a solution to the provision of schooling for their children beyond primary school. Children were previously compelled to attend distant urban schools after completing Grade 7, at great cost to their parents.

Today, the programmes run by the Trust include a school for pupils from Grades 1 to 10, an adult education programme incorporating skills development, parenting skills and HIV/AIDS education, a teacher development and whole school development programme as well as an Early Child Development programme. This excellent project represents a sound model of what can be achieved in a rural area with determined champions.

The Siyazisiza Trust

The Siyazisiza Trust was established 14 years ago to contribute to poverty relief through training, sustainable job creation and capacity building in rural communities in Northern KwaZulu Natal. AngloGold has committed R400,000 per annum for three years (2003 to 2005) towards the Maputaland Rural Development Scheme run by the trust. The trust maintains excellent relationships in its areas of operation, and armed with a deep understanding of the communities in which it operates, is able to facilitate the development of sound small businesses. One of the key elements to success is the qualified and experienced local fieldworkers who live in the communities in which they work.

Training for the community includes financial literacy around record keeping, maintaining a bank account, business training, ordering of supplies and bulk buying and committee work. Income-generating activities include block-making, vegetable and organic fruit production, bee-keeping, candlemaking, metalwork, carpentry, poultry and crop production, sewing and knitting and taxi and carwash operations.

The Trust has established more than 500 community businesses and has touched the lives of more than 11,000 households. One of the most important features of the Trust is that it taps into the potential of women, who have been severely disadvantaged in these rural communities.

Children supported by the Winterberg Schools Trust,

established in 1991 to address the educational and

social needs of the community of Winterberg in

the Eastern Cape.

AngloGold in the community

Case studies

C15

South Africa

7.2 Small and Medium Enterprise
Development Initiative

Masakhisane - "Come Let's Build Each Other Together" - is the name of the fund which was established to assist entrepreneurship in the mainly Historically Disadvantaged South African (HDSA) sector.

Aware of the obstacles that HDSAs may encounter when approaching large banking institutions for finance, AngloGold set up its Small and Medium Enterprise Development Initiative (SMEDI) through the Masakhisane Fund to assist with the establishment of business opportunities. The Fund's objectives are to stimulate economic growth, mainly in the areas in which the company operates, and to empower disadvantaged people, not only to participate in their communities, but to also give back.

With a R10 million fund, SMEDI identifies people with ability and embarks on a process of education, skills training and funding with a view to their businesses becoming self-sustainable. This is achieved through once-off funding and although investment is not typical, exceptions are made if the business has the potential to grow. SMEDI gives on-going assistance throughout the establishment process until the project is ready to compete in a normal business environment.

Since the formation of AngloGold in 1998, SMEDI has been involved in the setting up of 146 small businesses with an accumulated turnover of more than half a billion rand, creating jobs for some 3,000 people.

SMEDI staff is based at Merafong in the West Wits and Vaal River areas, where a comprehensive database of companies and businesses, services and products is kept. Siphiwe Mahlangu, Senior Commercial Officer at SMEDI, assists potential entrepreneurs in drawing up business plans, and presents the proposals to the Masakhisane Board for funding assistance. Once approved, an implementation plan is drawn up and on-going assistance given for a period of about three to four years, by which time it is expected that loans will be paid off and projects will be self-sustaining enough for SMEDI to withdraw, although it may continue to provide business assistance.

In 2003 a SMEDI growth programme saw the emergence of a number of black empowerment flagship projects. Siphiwe has seen a number of enterprises germinate and grow. One example is Amazing Laundry Services, a laundry service in the West Wits area, which took over the needs of the paraplegic unit when it was relocated from the Ernest Oppenheimer Hospital in 2003. The HR Department approached Siphiwe to identify a possible entrepreneur to take over the service. He found an interested woman entrepreneur, after which Masakhisane provided a loan, while at the same time retaining a 20% equity stake in the company. The laundry service currently employees three women, but is likely to grow as the number of contracts increase. It has already acquired a contract from the municipality, as well as one with an AngloGold hostel, and it hopes that hospitals in the areas will engage its services.

Another successful project is a bakery enterprise, called Moltsane-Im, which started last year in the Merafong Municipality (encompassing Carletonville and Fochville). Another woman entrepreneur approached Siphiwe regarding the use of a redundant AngloGold building to start up the bakery venture. Siphiwe assisted in drawing up the required business plan after which permission was granted. The bakery started with about 12 employees but is also likely to expand after acquiring contracts with two other mining companies in the area, Harmony and Gold Fields. It is also hoping to do business with AngloGold once fixed-term contracts with other companies expire.

Although no finance was required, SMEDI assisted Duswan Services through its negotiations with AngloGold regarding business premises and contracts. The enterprise, which repairs and refurbishes damaged mine equipment, currently employees about 30 people at West Wits but is likely to grow with on-going business assistance from SMEDI.

One of the bigger projects has been Stone and Allied Industries, a joint venture signed in 2002 between the management of Stone and Allied (a former AngloGold subsidiary) and a group of black entrepreneurs. Some 90% is owned by this consortium and the remaining 10% by the Masakhisane Fund. Stone and Allied Industries, which crushes stone from many waste rock dumps, owns three stone-crushing plants and four ready-mixed concrete batch plants in the Free State, Gauteng and North West provinces. The company is now also providing mobile stone-crushing units to meet industry demands.

One of the carpenters carves a lamp at Ngezandla Zethu's factory in Kosi Bay.

AngloGold in the community

Case studies

C16

An exception was made when a furniture-making project was given SMEDI assistance in the rural KwaZulu Natal village of Kwa-Ngwanase. Although not a mining operational area, a decision was made to offer assistance in view of the fact that a large number of AngloGold's migrant labour force originates from the area. The project, called `Ngezandla Zethu' (Zulu for `With Our Hands'), provides jobs to a number of previously unemployed people. Using hard wood from the old, fallen tree trunks in the surrounding indigenous forest, the factory makes items ranging from dining room tables to wooden bedsteads. A by-product of the project is the production of twine from the coastal reed beds, sold to the factory to be incorporated into tabletops, lampshades and chair seats. `Ngezandla Zethu' has the backing of the Department of Nature Conservation, and the Council for Scientific and Industrial Research (CSIR) is assisting with technical training and strategic planning. More recently, SMEDI has come on board through loaned finance for woodworking equipment and truck transport, both of which are vital to the project's expansion.

All of the projects are linked to AngloGold's Black Economic Empowerment (BEE) Procurement Strategy, established in 2001 to serve as a guide to AngloGold's Commercial Services Department in obtaining goods and services from BEE companies. In this regard, AngloGold fulfils three key criteria of the Mining Charter's Procurement Scorecard - it gives HDSAs preferred supplier status; it has identified the current level of procurement from HDSAs in terms of capital goods, consumables and services; and it is committed to a progression of HDSA companies over a three- to five-year time frame in terms of the afore- mentioned requirements. Regarding the last, AngloGold has exceeded its 2003 target value of almost R330 million and expects to more than double this amount over the next eight years.

The establishment of SMEDI will, to a large extent, continue to facilitate with the outsourcing of products and services from the small and medium business sector. However, value addition within AngloGold will only become significant when larger businesses and projects are linked into the company.

So while SMEDI's Commercial Services Manager Johan Coetzer is justifiably proud of these projects, which reflect a range of enterprise size and products/ services, he says, "If we want to see a significant impact in what we do, we can't neglect smaller ones but we must look at substantially-sized business opportunities to grow the economy."

The challenge ahead is to encourage larger business opportunities in order to generate much-needed jobs, as well as to reach AngloGold's 30% BEE procurement target by the year 2012.

This will almost certainly be one of the issues talked about, when representatives from the Board of the Masakhisane Fund and SMEDI meet at a strategic session, to discuss the focus and direction of the company. The forum will include a review of past and present successes - and shortcomings - as well as strategies to inform future development, so that the company lives up to its mandate.

Mother and daughter from a nearby village working on

a doormat. There are approximately 376 women and

their families who manufacture handcrafts on

demand for Ngezandla Zethu.

Carpenters at work at the factory in Kosi Bay. Here

they are busy manufacturing a cupboard.

Bheki Mthethwa, project manager, inspects one

of the cupboards that are manufactured at

Ngezandla Zethu.

Characteristic of the furniture that Ngezandla Zethu

produces is the artistic manner in which wood and

woven twine is used to manufacture anything from

dining table sets, bedroom sets, to coffee tables

and bed lamps.

AngloGold in the community

Case studies

C17

South Africa

7.3 Carletonville Home and Community Based Care

"You've got to keep trying to make the world a better place to live in," responds Petra Kruger, when asked about her passionate involvement in the Carletonville Home and Community Based Care project. Not that she would ever take sole credit for the work being done in the community programme which reaches out to HIV/AIDS infected and affected members of Carletonville and its surrounds.

She is quick to point out that community-based care started humbly at grass roots level in 1998, when a dynamic and charismatic retired nurse realised the need for palliative care of terminally ill people in the nearby township of Khutsong. It has since grown to a fully-fledged organisation. As the numbers who required care grew, so did the need for a more structured form of community care and the Carletonville Home and Community Based Care (CHCBC) programme was born in 1999, acquiring its own Board of Governors in 2002.

The programme is now run with a team of community volunteers and Buti Kulwane, CHCBC's Programme Manager, at the helm. Buti started out on a voluntary basis in 1999, while still a social worker at AngloGold Health Service. But it soon became evident that CHCBC required a dedicated fulltime project manager if the programme was to make any real impact. By this stage AngloGold was involved with the project and Buti's secondment to the project was approved. He works closely with Angelene Smith, an accountant at AngloGold Health Service, and the project's Financial Manager; and with Petra Kruger, Manager of the HIV/AIDS programme at AngloGold, who was invited to join the Board of Governors when it was established.

As manager of HIV/AIDS at AngloGold, it's not as if she doesn't have enough on her plate, with 30% of the 40,000 strong workforce affected by the disease. But nothing seems to be too much for this bubbly and energetic single mother, who devotes up to 20% of her week on such projects, albeit in mostly administrative and managerial support of the programme. Not that she isn't hands on. She is driven by a passion to get involved with children, cognisant of the fact that they carry the burden of the HIV epidemic and are a crucial target if inroads are to be made in retaining long-term social integrity and in making any real impact in stopping the spread of the disease. Adults, she says, are often too set in their ways, and not so open to advice and education. Indeed, as a doctor in curative medicine and occupational health, regularly treating diseases "at the end of a long string of poor lifestyle habits" she sometimes laments the fact that she didn't go into education!

There are four components to the CHCBC programme, which cares for about 230 adults and 500 children in the community. The programme attracts mainly women volunteers, of all ages, from the unemployed community, although Petra is quick to point out that, as care workers, they do receive a R800 stipend a month. One component is palliative care for bed-ridden and terminally ill patients where care workers offer training and support to attendant relatives as well as monitor patients and ensure continuity of care.

The second component is support groups for those who are still mobile and who can attend the CHCBC Centre. Manned by a co-ordinator and team leader, the groups are an important forum to ensure that HIV/AIDS sufferers start putting their affairs in order and draw up wills, so that their children will have immediate ownership of the family home and access to welfare grants, to which they will be automatically entitled as orphans e.g. free water and lights, schooling and foster grants, all of which require legitimate paperwork. These groups, besides discussing the illness with sufferers, providing meals, and assisting with documentation, also assist them in advising families of their HIV status. Much still has to be done in the area of destigmatising the disease and although there is interaction with families, neighbours and the community in the groups' day-to-day dealings with sufferers, Petra is convinced that it needs a massive marketing and media campaign, a project idea that she is already investigating.

Linked to the support groups is the income generating activities component, which offers some income to those who have lost jobs through their illness, but because they are not at the terminally ill stage, are not eligible for welfare grants. They comprise mainly breadwinners who are offered courses like beadwork, sewing, pottery, food gardens (the local Agriculture Department recently donated land), and bread and candle making, with a view to selling produce and products on the local market, as well as giving the participants a sense of purpose. However, the ever-pragmatic Petra admits that sustainability, the ideal outcome of such activities, is not overly successful and accepts that there will always be a greater element of charity.

Petra Kruger, manager of the

HIV/AIDS programme

at AngloGold's South African

operations.

AngloGold in the community

Case studies

C18

The last component, a critical one, and which forms the majority of the care workers' responsibility, along with that of palliative care, is the orphan care project. It was first developed by Heartbeat, a community development organisation, which linked into Carletonville's Home-Based Care programme to test its orphan-care model. The three- year pilot programme started in 2000, with the view that it would become self- sustaining after that period, and that Heartbeat would gradually withdraw. The model recommends that children who are not fostered remain in their home environment after the death of one or both parents, in favour of being institutionalised. Voluntary Care Workers supervise these child-headed households - an average of 188 children per month - ranging in age from four to 22 and with up to six family members. This number increases to 500 children if one includes granny-headed households, since the State considers it is the obligation of family members to look after orphaned children in their midst and, therefore, do not allow them access to foster grants, leading to extreme poverty in those households where everyone is surviving on just a State pension. It has, however, been recognised that this legislation needs to be reviewed in the face of the HIV epidemic. Daily visits are made to each household to check, for example, that the the children have food and clothing, to ensure that they attend school and that homework is done, and that they are given surrogate love and attention, the last of which Petra admits is the most difficult to replicate on an ongoing basis.

Fundamental to the Orphan Care model is the recreation of community cohesion. The Sakhi-Sizwe Community Child Care Forum represented by schools, women's groups, youth groups, social welfare, churches, police, and CHCBC all meet once a month to rally around the care of children, first detecting children in distress and then mobilising resources to look after them - for example, ensuring child protection where abuse is suspected, providing free schooling, or giving care.

All of which is a feather in the cap of the programme's leaders, who are passionate about the success of the programme, not only in Carletonville but also further afield.

AngloGold in the community

Case studies

C19

East and West Africa

7.4 Resettling a village - the stories of Sadiola
and Farabakouta

Resettlement of local communities is frequently a controversial issue. Extensive planning and consultation and independent monitoring went a long way towards minimising concerns and issues during the relocation of the Sadiola and Farabakouta villages at Sadiola mine in Mali.

The Sadiola mine is situated about 80km south of the regional capital of Kayes, and is a joint venture between AngloGold (38%), IAMGOLD (38%), the Malian Government (18%) and the International Finance Corporation (6%).

While the possibility of village relocation was discussed during the original Environmental Impact Assessment (EIA), between the mine, the Malian government and the affected villages, a decision to proceed with the planning for the relocation of the two villages was taken in September 1996.

Basis for relocation

The village relocation process was conducted in accordance with the World Bank guidelines on Involuntary Resettlement (Operational Directive 4.30) and the relevant Malian laws. A central tenet of OD4.30 is that a resettlement is conceived and implemented as a development programme. The objective for the relocation was to improve, or at least restore, the population's former livelihoods and production levels. In short, the aim was to ensure that nobody was worse off than they were before the move.

The process

The Institute of Natural Resources (University of Natal, Pietermaritzburg, South Africa), and the Malian NGO, Association d'Etude et de Mise en Valeur des Resources Naturelles et des Institutions (ASERNI), were contracted to prepare Resettlement Action Plans (RAPs) incorporating comprehensive community participation programmes for the village relocations.

A steering committee was formed and led by the Governor of the Kayes region to oversee the identification and selection of new village sites.

A land use study identified the distribution of agricultural lands and other important natural resources.

An executive committee (comprising the mine, the Malian government and the village leadership) then approved a detailed RAP.

A working group consisting of the implementing body (the mine and the various consultants) was established to co-ordinate activities and met on a weekly basis.

Extensive community consultation

Extensive community involvement and the use of participatory methods involving all interested and affected parties were employed. The appointment of ASERNI as the implementing agent, together with the mine's Malian staff, brought a great deal of understanding of the local village dynamics to the management team. The appointment of a community liaison officer early in the project resulted in a continuous and formal programme of community consultation and participation starting in 1994 and continuing through 1999, to the present day. In addition, the appointment of a full-time facilitator in each village provided important insight into village politics and the concerns of individual families, as well as providing a convenient communication channel for the village and the mine.

Women at the Farabakouta water borehole, fitted with

handpump, with the old village in the background.

The mosque in new Farabakouta village.

One of the replaced `special buildings' in

new Farabakouta.

During the physical relocation, transfer of household

contents was simplified by the use of containers

which could be left at a household to be packed and

then moved to the new village when ready.

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Designing the village

The Malian government required that the design of the new villages be based on modern township planning principles. The new villages were therefore constructed on a symmetrical grid- type pattern, with plots being allocated to individual families. Natural expansion in the old village had led to cramped and over- crowded conditions, so the inhabitants welcomed the extra space provided through the larger plot sizes in the new villages. With the allocation of plots it was important to maintain the same sense of social order in the new village so that, for example, somebody living next to the chief in the original village should continue to live next to the chief in the new village.

In traditional villages huts were made of mud brick and thatch
roofs, but the mine agreed to provide more permanent structures.
Four laterite-cement brick-making machines were imported from
South Africa and a team of 140 local villagers were employed
over a nine-month period to manufacture 1.4 million laterite-
cement bricks. This provided a significant boost to the local
economy. A series of standardised designs were available
for selection by the affected households. Showhouses were built in each village so that the people could understand what would be provided and have an opportunity to comment on them. Where families owned unique structures, the architect sought to build the special features of these structures into the replacement buildings.

Construction

The first phase of construction was the clearance of the new village sites by the bulldozers. This also involved the identification of large trees that would need to be felled either because they might present a physical hazard, or because they could be perceived to provide refuge for "evil tree-dwelling spirits". Site clearance was preceded by a religious ceremony and animal sacrifice to appease the spirits. Over-enthusiastic men-folk condemned almost every tree on the village site which, with hindsight, should have been more vigorously challenged, as it will take many years to grow shade trees in the new villages. This has been the subject of consistent post-relocation complaints by the women of the village.

Construction of Farabakouta started on 27 February 1998, and construction of Sadiola started on 27 May 1998. The local villagers monitored progress with the construction and immediately raised concerns about the quality of workmanship (where these existed) and other issues.

Construction of the villages included the installation of access roads, stormwater drains and other public amenities such as a mosque, central meeting place and a football field. In Sadiola, construction included the replacement of government facilities such as the district administrative complex, the agricultural facilities, the forestry office, the clinic and the primary school. The mine also provided a district secondary school as part of its contribution to community development.

During this phase, the compensation for secondary structures and croplands was paid to enable villagers to proceed with the replacement of cattle kraals, chicken coops, granaries, etc.

Relocation

Once initiated, the moves to the new villages proceeded rapidly. A village relocation ceremony preceded the move. Each family was provided with a container in which to place their household belongings and these were then loaded onto a truck and transported to their new homes where the goods were again offloaded.

Monitoring

A thorough and independent monitoring process was developed and implemented to assess the overall progress of the village relocation process, and a number of issues have been identified over the past few years.

For a copy of the full paper "Four years after the move: Village relocation at Sadiola and Yatela gold mines, Mali, West Africa" by Andrew Mackenzie, Justine Pooley, Sam Samakke, S Sangare and I Sidibe, see AngloGold's Report to Society at www.anglogold.com.

Sadiola, 8th July 1999 - Official handover of the keys of the new village by

the then General Manager of SEMOS (Mr Dave Burgess) to the Chief of Sadiola

(M. Sankoumba Dembele). The goat was presented as a thank you gift from

the village to the Regional Governor for his role in the relocation process.

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East and West Africa

7.5 Community development initiatives at Sadiola and
Yatela gold mines

Establishing and operating a mine in a remote location like the Sadiola district in Mali presents a number of unique challenges - a foreign language, an unfamiliar culture, extreme climate, lack of basic infrastructure, poor roads, basic medical facilities, a shortage of technical expertise, an influx of work seekers, among them. Given the significant and rapid social changes brought about by the development of a mine, maintaining good relations with the neighbouring communities was fundamental to this process, and integral to the way AngloGold conducts its business.

AngloGold's initial relationship in Mali dates back to the development of the Sadiola mine, an open pit gold mine located in the Kayes region of Western Mali. Construction of the mine started in early 1995 and production commenced in 1996. Mining is scheduled to cease in 2008, although exploration in the area may extend the life of the mine.

The nearby Yatela Gold Mine is a smaller operation located 30 km north of Sadiola. Construction commenced in 2000 and the plant was commissioned in 2001. Although it shares some of the SEMOS infrastructure, it is run as a separate company by its shareholders: AngloGold (40%), Iamgold (40%), and the Government of Mali (20%). Closure is scheduled for 2005.

Starting on solid foundations

The Environmental Impact Assessments (EIAs) for both Sadiola (1994) and Yatela (2000) found that the most significant impacts of the mine would be of a socio- economic nature on surrounding villages.

The development of Sadiola was revolutionary at the time. A comprehensive, internationally acceptable EIA carried out as part of the project feasibility study, was required as a condition of the IFC loan financing. This was over and above Malian legislation and mining permit requirements at that time. The EIA included extensive social assessment work and involved extensive consultation and use of rural participatory planning methods, and so established a style for future community interactions.

To help mitigate some of the negative effects of the mine, SEMOS committed to contributing towards a trust fund for local community development efforts. These provisions began with the start of production in January 1997. In 1997 various projects, such as the provision of hand pumps on water boreholes, community gardens and food relief for a village ravaged by fire were undertaken on a case-by-case basis. This early phase of community development was not guided by any overarching strategy, but largely through a desire to improve the livelihoods of villages around the mine. Initiatives were evaluated on an ad-hoc basis and administered solely by the mine.

Community development during the village relocation phase

The next phase in the company's approach to community development was brought about as a result of the village relocation. Expansion of the mine pit at Sadiola necessitated the relocation of two local villages, namely Sadiola and Farabakouta. During this phase, community development initiatives hinged around the objective that `nobody should be worse off than they were before the move'.

One of the concerns was that relocation would interfere with cropping activities and possibly affect food security. The provision of fertilizers was included as a way of ensuring the productivity of new cropping lands, but the use of fertilizers

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is not common in the district. The provision of cattle-drawn ploughs and other agricultural equipment was accepted by the relocated villages as more appropriate and sustainable. The district agricultural officer was contracted to supply agricultural extension services and advice regarding the use of implements, seed and sowing techniques.

Also included, as a contingency, was the possible provision of supplementary foodstuffs (maize and millet). Interventions that allow villagers to rely upon the mine for important goods or service that would no longer be available once the mine closes were avoided and assistance rendered to villagers was screened for possible creation of dependencies.

The simplest yet most effective way of providing community development assistance to villagers is to focus on those known elements of their livelihoods that cause most hardship or present the best opportunities for escaping the poverty cycle, such as water supply, health care, education and agricultural production.

For example, groundwater supply is absolutely crucial to village existence during the dry months, and the lack of adequate water supply is a major limiting factor in both crop cultivation and general village development. The installation or repair of boreholes and hand pumps, or, where specifically requested, large diameter village wells was a useful intervention. Responsibility for the maintenance of the pumps now rests with either the village leaders or the local administration.

The purchase of diesel-driven mills for use by the women benefits the entire community, as it liberates women from the time-consuming and arduous daily task of manual stamping of grain crops. Experience showed that the mill had to be at least partly subsidised by the women's group or village, so that the group took responsibility for its upkeep and repair. Without this `buy-in' there is a lack of ownership that can lead to neglect. Donations are avoided where possible in favour of joint funding arrangements, even if local communities only put up a fraction of the costs.

Establishment of the community development Trust Fund

In mid-1997, a dispute arose between the chiefs of Sadiola and Farabakouta and the other four villages. The former felt that because they were the most affected by the creation of the mine and the pending relocation, the Trust Fund should be utilised for their exclusive benefit. However, the other villages felt that Sadiola and Farabakouta were receiving great benefit in the form of highly improved accommodation and village facilities, and once moved, all neighbouring villages would be equally affected by the mine. To resolve the dispute, a moratorium was placed on all projects and the Malian government intervened to mediate in the stand-off. They requested, and were granted, participation in the administration of the Fund through dual signing powers.

Following much consultation a more formalised Fund was established in November 2000 and initially targeted six villages in the vicinity of the mine, two of which had been resettled. Subsequently two other villages were included (a total of eight) because the development of two pits were within the areas utilised by these villages.

The most successful component of the work done to date has been the establishment of a revolving micro-credit scheme, which involves the provision of small loans to either individuals, or groups, for the development of new or existing entrepreneurial activities. The disbursement of the first loans (microcredit) for small projects took place during May 1999. By December 2000, over 34 entrepreneurial initiatives had been funded in this way - at a total value of US$22,500. The type of projects funded have been village shops, travelling salesmen, dressmaking and tailoring, grain milling, small scale irrigated vegetable gardens, small scale poultry production, metalworking, etc.

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Macro-projects involve large community groups, entire villages or groups of villages. These include projects to improve the water supplies in the target villages, such as the development of a borehole and well at Borokone. At Sadiola, a large dam amounting to a cost of US$100,000 was constructed in line with community requests for year-round water supply. The implementation of an artisanal gold mining (orpaillage) project at Farabakouta to substitute for resources lost in the construction of the main Sadiola pit has been less successful.

The third major thrust of the foundation's activities is social development, with a particular emphasis on basic literacy and numeracy and the development of basic planning and business management skills. Building capacity in the target communities is possibly the greatest challenge facing the foundation and is essential to the goal of sustainable development in the district. To date this has been carried out largely through one-on-one interaction between the facilitators and entrepreneurs in the development of micro-business plans. This is an area where the foundation has continued to seek partnerships with existing organisations that have expertise in areas such as mother-tongue adult literacy; basic numeracy; vocational skills training (for example metal work, woodwork and sewing); other training to build capacity in the communities (for example small business management, agricultural skills) and primary health care.

In the village relocation process, substantial improvements had been made through the provision of an upgraded district clinic (with ambulance), a bigger primary school and a new secondary school.

With the development of the Yatela project, the activities of the foundation were extended to the six villages within that mine's sphere of influence. An additional rural facilitator was appointed, but management continued to be co-ordinated through Sadiola.

Development projects need to be selected in a participative manner, in consultation with parties which are cognisant of local socio-economic realities. Extensive community involvement, and the use of participatory methods involving all interested and affected parties, greatly contributed to the successful relocation of the villages and subsequent community development initiatives.

The appointment of ASERNI as the implementing agent, brought a great deal of understanding of the local dynamics to the management team. The appointment of a Malian community liaison officer early in the project phase resulted in a continuous and formal programme of community consultation and participation starting in 1994 and continuing through to the present day. ASERNI's recommendation to base a full-time facilitator in each of the villages provided important insights into village politics and the concerns of individual families, as well as providing a convenient "go-between" for the village and the mine.

Environmental audits (2000 & 2001) of the mine's community development activities have acknowledged the successes of the micro-credit scheme and village resettlement initiatives but have warned about complacency in responding to change.

See AngloGold's Report to Society at www.anglogold.com for a full copy of the paper, "Sustainability challenges: Community development initiatives at Sadiola and Yatela gold mines, Mali, West Africa", by AG Mackenzie and J Pooley.

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East and West Africa

7.6 The Geita Gold Mine Kilimanjaro Challenge 2003

"This challenge is about our personal commitment as a company and as individuals for our peers who suffer from this terrible disease," says Peter Turner, Chief Executive Officer of Geita mine in Tanzania, of the mine's annual sponsored climb up Kilimanjaro to raise funds for HIV/AIDS. The pandemic, which is ravaging the African continent, has already exacted a high toll in the East African country of Tanzania.

Geita Gold Mine was already aware of the high incidence of HIV/AIDS when the mine first opened in 2001, and it has since established a VCT clinic with AMREF International, as well as information campaigns, in the community within which it operates.

The challenge to climb to the top of Mount Kilimanjaro has become an annual event, and with the mine's other efforts, is a response to Tanzanian President Benjamin Mkapa's declaration in 1999 that the pandemic in his country was a "national disaster".

"We have a social responsibility to our employees and to the community around us. We have to get involved. We certainly have to fight the battle with the President both at a national and local level," Turner continues.

In 2002, a group of Geita mine employees took on a six-day expedition to the top of Africa's highest free-standing mountain and raised 40 million shillings (R320,000). Last year's target was a whopping 100 million shillings (R700,000). Collectively, the two Kilimanjaro climbs have raised in excess of R1 million in support of HIV/AIDS projects in Tanzania. Some 49 climbers from Geita mine and its contractors participated, including two HIV positive climbers, who were invited to join the group and to share their experiences in an effort to promote destigmatision of the disease.

"I didn't expect to climb the mountain with the intention of educating society on HIV/AIDS so really I'm killing two birds with one stone," said Julius Kaaya, who has lived with the disease for 10 years.

Antonia Kilego was following in the footsteps of her father who had made a failed attempt in 1958. "I expect and hope that I reach the top so that he and many others should know that being infected with the HIV virus doesn't mean that you can't do anything."

In 2003, a team of Geita Gold Mine employees pledged their commitment to the HIV/AIDS pandemic by climbing Mount Kilimanjaro

and raising 100 million shillings (R700,000).

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So on 31 May 2003, the intrepid group took off from Moshi, a town situated at the foot of Mount Kilimanjaro. The first day covered an 18 kilometre stretch through lush rain forest, from the Machame Gate at 1,800 metres up to Machame Camp at 2,980 metres. Battling their way through rain and mist, after a 12-hour slog the group made it to the camp where, unfortunately Antonia became the first casualty of the hike. She was advised to turn back, not because of her HIV condition, but because of her fitness levels. Back at base camp, though, she was undeterred, saying, "I have not given up. I will definitely climb again. My message to all HIV positive people is `don't give up on life'." This left her companion Julius to take up the fight against the stigma of the disease and the resultant segregation that many sufferers face. Already he was reminiscing about how he was treated before contracting the disease, saying that he was participating in the hike " just like a normal person. I've shared sleeping quarters, food and everything without being segregated by anyone so it is quite a change."

The second day was a 15-kilometre hike, rising 1,000 metres and taking seven hours to reach Zero 2 at 3,900 metres. Finally the sun peeked through and dampened spirits lifted.

At the halfway mark on day three, the group hiked seven kilometres to the top of Lava Tower at 4,600 metres, before descending again to Barrano Camp at 4,000 metres. They faced huge temperature fluctuations at these heights, from below 0 degrees Centigrade at night to over 35 degrees during the day. This was to be the make or break mark, with expedition leader Jon Hill guaranteeing that if they could get through altitude sickness symptoms, like headaches and nausea, they would make it to the top. As the altitude rose above 4,000 metres the moorland environment gave way to a lunar landscape with almost no vegetation, and at the same time the weather gave way to hail and snow - the latter a first for some!

By day four Peter Turner was happy with the way the group was handling the tough conditions. "I think we've seen team work and spirit come through. For those who have battled, the team has rallied together well and we've really come through strongly." As the porters dismantled the tents, first beating off the clinging frost, the hikers were to embark on a tricky 300 metre vertical climb up Barranco Wall before descending to Karango Valley Camp Site - a seven-kilometre distance that would take some five hours. From a distance, they looked like ants clinging to the face of the mountain. Some declared that it "made you feel like Tom Cruise in the opening scenes of Mission Impossible II"!

Day five was split into two legs. The first was a six hour climb to Barafu Camp at 4,500 metres, the last camp before the summit and which boasts the highest loo in Africa! From Barafu, it was a light late night snack before facing the last gruelling distance which would see the group climb another 1,300 metres through the night, in freezing temperatures, to reach the edge of the crater at Stella point in time to witness a spectacular sunrise. An hour later, emotions ran high as 47 of the original 49-strong team finally summitted Uhuru peak at 5,895 metres (19,330 ft).

Besides achieving their personal goals, the group also attained the team objective of supporting the on-going fight against HIV/AIDS. At the same time there was a sense of the parallels between climbing a mountain and battling the disease. Said Peter Turner on the day before summitting, "You take one step at a time. There are times when you are really down and out. The journey can be a long one and at the same time an enjoyable one. It's about relying on your peers to support you and rallying together in the fatigue that you might feel."

And the man who achieved triumph over adversity was quick to agree. Said Julius Kaaya, on reaching the top of Mount Kilimanjaro, "Being HIV positive doesn't mean you curl up and die. Like climbing a mountain, with help and support, your journey through life can be made easier. No one knows when their time is up - I have left those worries and fears behind. Each day is a precious gift. Let us live together."

The Geita mine team at the summit of Mount Kilimanjaro.

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South America

7.7 Reaching out from Morro Velho

The Morro Velho mine, in Brazil's Minas Gerais state, is a 100-year old mine that is an integral part of the community that surrounds it. The examples below are just some of the initiatives and partnerships undertaken by the company.

Extending quality health care

In extending health services, community partnerships are essential. AngloGold has donated hospital equipment, including an intensive care unit, which serves a population of approximately 91,000 people. Adjoining the local hospital the company has built the ultra-modern Reference Centre for Pneumology which provides quality medical care to former employees suffering from silicosis

(See

case study in health section of this report)

. In addition the Centre is open to

partnerships with universities and research centres, with the purpose of developing studies relating to lung diseases.

Support for education

The company has maintained its support for the Management Development Technical School in Nova Lima, funding 20 scholarships for indigent members of the community. The school focuses on intermediate education, and developing entrepreneurial skills among teenagers. Courses offered include languages (English and Spanish), computer science, business administration and finance. Morro Velho offers 20 scholarships for needy students. In addition, two-month probationary training sessions are provided to students at the end of each course and, as a result, 28 students have been recruited to the company since July 2001.

Additionally, Morro Velho's employees have benefited from a scholarship programme which has reached 110 people who pursue a number of skills- enhancing courses, from English language courses through to undergraduate courses, to MBA courses.

Rising to the environmental challenge

AngloGold works with the local environmental authorities and the Public Ministry in monitoring old tailings dumps.

As a further service to employees and the community, the company's Harry Oppenheimer Environmental Education Centre offers courses to employees on the environmental technology adopted at the operations. More than 9,000 members of the community visited the centre during the past year, while 3,000 students took part in programmes designed to foster greater environmental awareness. Another environmental education centre is currently being established in the region of Santa Barbara at a cost of US$68,000.

(See case study in the environmental section of this report)

Highly beneficial waste sorting programmes have been implemented at the operations. Part of the material gathered is sold or sent to companies with the necessary accreditation to dispose or recycle the materials. Paper and plastic, on the other hand, is passed on to recycling groups helping to generate income and create jobs in desperately poor communities. During 2002 alone, some 19,110 kilograms of material were recycled.

Morro Velho supports the Management Development

Technical School in Nova Lima, and funds 20

scholarships for indigent members of the community.

Morro Velho has built the ultra-modern Reference

Centre for Pneumology, which provides quality

medical care to former employees suffering

from silicosis.

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Industrial theatre shows are used in the communities to communicate specific messages about potentially hazardous environmental conditions.

Morro Velho participates in a forum which is looking at revitalising the Das Velhas River, which receives a large volume of industrial residue. Morro Velho has allocated approximately US$54,000 to the project.

Earning community respect

Morro Velho has played a driving role in the government and private sector initiative undertaken, under the auspices of the Nova Lima Municipal Development Agency. The aim is to attract and ensure the viability of the community once mining activities in the area have ceased. Over the past five years this initiative has attracted more than 50 new business enterprises to the region, that have the potential to generate 4,500 new jobs.

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Australia

7.6 Partnerships that work - AngloGold Australia and Carey Mining

AngloGold Australia is, as a core objective of the company's community policy, committed to fostering long-term relationships with communities in the areas in which it operates, particularly local indigenous communities. To achieve this, a whole range of partnerships and programmes have been put in place, including training and development, employment and business support initiatives - all of which can provide much-needed employment opportunities for indigenous peoples living in remote areas.

One such partnership is AngloGold's relationship with Carey Mining, which began in 1995 when the development of the Sunrise Dam operation had just begun. The mine was negotiating with native title claimants in the area when Daniel Tucker, the Managing Director of Carey Mining, proposed a more visionary approach. Daniel wanted to establish a sustainable business for indigenous people.

Daniel's vision was to create a financially robust and successful enterprise focused on delivering and achieving business excellence, which would provide employment and training opportunities for indigenous people. This was mirrored by AngloGold Australia's desire to provide an opportunity for local indigenous people to establish a sustainable, long-term business capable of thriving beyond the life of the mine. An agreement was reached in which Sunrise Dam Gold Mine Operations undertook to ensure that Carey Mining would have the option to participate in the mining contract when it was awarded.

AngloGold Australia subsequently facilitated joint venture negotiations between Carey Mining and the successful mining contractor. This was a significant achievement for both parties, establishing paradigms previously unheard of - an indigenous company providing contracting services to the mining industry. Carey Mining remains a joint venture partner in the mining contract and in 2002 won and completed a second contract involving work on the tailings dam at Sunrise Dam.

The chosen path was not an easy one, requiring persistence and perseverance, but it has been worth it. Carey Mining today has built up a reputation as a reliable service provider, providing services to a wide range of mining companies. But what sets the company apart is its ongoing commitment to its indigenous roots and its willingness to use its own competencies to advise and assist other indigenous business start-ups.

In 2003 AngloGold Australia and Carey Mining took their successful commercial partnership beyond mining and into the arts. The companies' innovative sponsorship of a trainee indigenous education officer at the Art Gallery of Western Australia subsequently won an award. Pictured accepting the Best New Sponsor award at Western Australia's State Arts Sponsorship Scheme Awards from the Hon Sheila McHale MLA, WA Minister for Culture and the Arts, are Daniel Tucker, Managing Director of Carey Mining (left) and Barrie Parker, Operating General Manager of AngloGold Australia.

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Australia

7.7 Developing the local Balgo community at Tanami

As part of the company's commitment to fostering long-term relationships and sustainable projects in the communities in which it operates, AngloGold Australia has forged a special relationship with the small Balgo community in Tanami in Western Australia. The Tanami mine is located 650km from Darwin within the Central Desert Aboriginal Land Trust. The mine was in operation from late 1995 until mid-2001, with AngloGold now undertaking progressive rehabilitation of the area.

With the assistance of AngloGold, the community has set up a small business to manufacture concrete drill-hole plugs for sale to mining operations. Drill-hole plugs are used by mining operations undertaking rehabilitation to close off old mining areas. Since the project was set up in 2000, the demand for these plugs has steadily increased in the region, with this operation producing 7,000 plugs in 2002.

The operation now provides part-time employment for a number of community members, within the grounds of the Adult Basic Education Centre, also provided for the community by the mine. Other ongoing contributions to the community include sponsorship of health, sporting, social and sustainable development initiatives.

This is just one such partnership which illustrates the way that AngloGold Australia conducts its business. In fact, the AngloGold Northern Territory exploration group was recognised by the Northern Territory government for work done in fostering long-term relationships and partnerships with indigenous communities.

With AngloGold's assistance, the local Balgo

community at Tanami has set up a small business

to manufacture concrete drill-hole plugs for sale

to mining operations.

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North America

7.8 Serving the community - the Cripple Creek and Victor (CC&V) Volunteer Programme

In 2003, 91 CC&V volunteers (about 30% of the eligible CC&V workforce) contributed 4,884 hours to the community in which they live and work - equivalent to about 54 hours per volunteer per year.

The CC&V Volunteer programme was established in 1998 with a twofold purpose:

To encourage employees to make a contribution to the communities in which they live by volunteering their personal time.

To promote the image and reputation of the company through increased visibility and goodwill towards the company in the community in which it operates.

All regular full time or part time employees (excluding department managers) are eligible to participate in the paid time off aspect of the programme. Employees are encouraged to volunteer for community groups and governmental organisations. Examples of community groups include: Boy and Girl Scouts, Little League baseball, volunteer fire departments, community festivals, museums, and service groups. In return, from the company, community volunteers earn one hour of paid time off for every three hours spent volunteering. Governmental volunteers serving, for example, on the City Council or Planning Commission earn one hour of paid time off for every two hours spent volunteering.

Says Jane Mannon (Manager Community Affairs), "The success of the volunteer programme is shown in the positive results in the community. The volunteer time is greatly appreciated by the many civic organisations that benefit from the time spent by employees, and employees have the opportunity to talk about the operation and be proud of the responsible work that is accomplished here."

Employees may earn up to 40 hours of paid time off in any year. Those who volunteer over the 120 hours (or 80 hours for governmental work) are entered in a draw at the end of the year and the lucky volunteer wins cash to be used for a vacation or other personal need.

Cripple Creek and Victor in North America.

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Exploration

7.8 Making a difference - the Lotus Children's Centre
in Mongolia

Sustainable development is not something that begins when a company starts an operation in that region. It is an issue that is considered even at the exploration phase and AngloGold geologists are extremely mindful of the obligations and responsibilities placed upon them in operating in often very remote areas.

Started in 1995 with eight children and one building, the Lotus Children's Centre in Mongolia owes its development to a range of volunteers and donor organisations. This centre currently supports 115 homeless children with food, education and accommodation. The youngest child is just one month old and the oldest - a young adult - is 20.

Some of the children are orphans, but others have parents who are not able to care for them owing to illness or poverty. Many of the children have lived on the street at some time, even in this extreme climate.

Says Barrie Parker, head of AngloGold's Australian operations, "A group from the Perth office visited the centre during a recent trip to Mongolia. It was an extremely emotional experience for me - holding a one-month old baby who had been abandoned in the snow - and who now had a chance of survival".

The centre also runs a soup kitchen, providing meals for 30 to 40 disadvantaged people in the Yarmeg community, as a response to the extreme poverty in the area.

As a result of an initiative by two AngloGold

expatriate employees at the Lotus Children's

Centre in Ulan Baatar, in Mongolia, AngloGold

Australia has undertaken to support the centre

on an ongoing basis and to provide

volunteer services.

SH1

Occupational safety and health

Contents

Occupational safety

........................................................

SH1

Business principle:
AngloGold as an employer - safety and health

..................

SH2

1. Key indicators

...............................................................

SH3

2. Milestones - 2003

........................................................

SH3

3. Safety and health policy and agreements

........................

SH4

4. Review of 2003

...................................................................

SH5

5. Reporting in line with GRI

...........................................

SH9

6. Objectives for 2004

........................................................

SH11

7. Case studies

South Africa

7.1 Facing the challenge of seismicity at TauTona

........................

SH12

7.2 Fall of ground management initiative in South Africa

........

SH13

7.3 Education Trust Fund assists children

..................................

SH14

East and West Africa

7.4 Mining Geita Hill - drawing on international

best practice

.............................................................

SH15

7.5 Behaviour-based approach to safety at Morila in Mali

............

SH16

Australia

7.6 Preparing for the worst - the Emergency Management Plan at

Sunrise Dam, Australia

..................................................

SH17

7.7 Going underground at Sunrise Dam -

identifying risks

..........................................................

SH18

South America

7.8 New mining technique improves safety

and productivity at Serra Grande

...................................

SH20

7.9 Taking safety to the family at Morro Velho

.......................

SH21

North America

7.10 STOP programme implemented in North America

.............

SH22

Occupational health

...........................................................

SH23

SH2

Occupational safety and health

Business principle

AngloGold as an employer - safety and health