Economic performance

Generating new ounces - doing business in new places

See E3: AngloGold Ashanti and Trans Siberian Gold - AngloGold Ashanti on operating in Russia.

Meeting the Mining Charter's procurement targets

Actual proportion of total spend for 2005 was 29.82%, compared with 21.05% in 2004. As indicated in the graph below, BEE procurement spend will exceed 50% of the total with effect from 2011. In 2004, the target figure for 2012 was stated to be 63.5%; following the closure of Ergo and the downsizing of Savuka Mine in West Wits, this has been adjusted to 55.29%.

Graph to follow

In line with the requirements of the mining charter, AngloGold Ashanti gives HDSA companies preferred supplier status and has identified current levels of BEE procurement. Targets for 2008 in the various categories of procurement spend identified by the scorecard are as follows:

• Site works: 41%
• Consumables: 99%
• Services: 22%
• Capital: 9%

Growing small businesses in southern Africa

During 2005, SMEDI was involved in setting up 16 small businesses, with an average annual turnover at year-end of R45m. To date, jobs have been created for 1,205 people.

Masakhisane has a 10% stake in Stone and Allied, a former AngloGold Ashanti subsidiary now in partnership with a group of black entrepreneurs. During 2004, Stone and Allied entered into a joint venture with two women in the Eastern Cape, who had obtained a licence to quarry rock. Negotiations are currently under way to merge this entity with a major listed company.

Ergo moves towards closure after 25 years

AngloGold Ashanti's Ergo operation finally closed in March 2005 after 27 years of gold production. Its operational phase closed on a high note with gold production of 345 kg above budget for the first quarter of 2005. Locked up gold recovery also proved successful with 270 kg recovered since closure, almost double the budgeted 138 kg.

Closure teams are now busy with rehabilitation and clean-up of old mine sites. The demolition of now defunct and unserviceable infrastructure and the sale of redundant plant and equipment worth R30 million is also underway.

Riches of Africa - six years on

Along with the business combination of AngloGold Limited with Ashanti Goldfields Limited has come the rebranding of the Riches of Africa competition, now known as AngloGold Ashanti AuDITIONS. The new name reflects the designers now having the opportunity to ‘audition’ their pieces on a global platform. AuDITIONS will be launched in 2006.

The finalists' pieces are brought together in a collection called the Ensemble. In 2006 Ensemble events will take place in South Africa, India, China and Brazil.

For further information go to www.auditions.co.za

Brazilian Designer Forum becomes leading event in Brazilian jewellery market

Along with the business combination of AngloGold Limited with Ashanti Goldfields Limited has come the rebranding of the Riches of Africa competition, now known as AngloGold Ashanti AuDITIONS. The new name reflects the designers now having the opportunity to 'audition' their pieces on a global platform. AuDITIONS will be launched in 2006.

The finalists' pieces are brought together in a collection called the Ensemble. In 2006 Ensemble events will take place in South Africa, India, China and Brazil.

For further information go to www.auditions.co.za