Safety and health

Significant emphasis continued to be placed on safety and health during the year with the implementation of the company’s updated vision, values and related business principles.

Management systems and accountability

Group level leadership

In line with the increased emphasis on the management systems that underpin safety and health, a group-level safety manager oversees and reports on integrated practices, guides policy and reviews performance. The Group Manager: Safety (assisted by safety and health experts respectively) reports to the Executive Vice President: Sustainability, who reports on safety and health matters at the company’s regular Executive Committee meetings and safety executive meetings.

Board responsibility

At board level, oversight of safety and health falls within the ambit of the Safety, Health and Sustainable Development Committee. This committee meets quarterly and is empowered in terms of the authority and responsibility delegated to it by the board. One of the primary stated objectives of this committee is to ensure the elimination of all work-related accidents and diseases. Further discussion of the roles and responsibilities of this committee, and its composition and activities during the year may be found in the Ethics and Governance section of this report and the Corporate Governance section of the Annual Financial Statements 2008.

Developing a safety and health ‘blueprint’

In line with the group’s change to the positioning of its safety and health policy and strategy, and the implementation of a global ‘safety is our first value’ initiative, AngloGold Ashanti embarked on an occupational safety and health leadership transformation project to create a strategic ‘blueprint’ for occupational safety and health in the company. The project is being conducted in conjunction with external consultants, ZEAL, and with the full involvement of the group’s safety and health management structures. This included extensive consultation with core disciplines, operational management and union leadership. Other external parties and specialists are also being consulted. See the case study: Developing a new blueprint for safety and health for AngloGold Ashanti.

The project team undertook site visits as well as in-depth management and employee interviews through both face-to-face and focus group sessions. Additionally, an extensive employee safety and health culture survey was conducted. The aim of this process was to achieve a better understanding of the group’s current management cultures, structures and systems. In addition, an analysis of the macro environmental drivers, industry trends and best practice was undertaken in order to develop future scenarios that might affect safety and health. Initial outcomes from this project will be available in early 2009 for consideration by the executive.

Strategic initiatives to instill a culture of care have been effective across the group. These are supported this by empowering people to take responsibility for their own safety and health and that of their colleagues, and by recognising safety achievements. See case study: New approach to safety and health in South Africa pays dividends.

Safety and health policy

While the group-level safety and health policy is applicable to all operations, each operation also has in place safety and health policies that have been developed to take into account country- and operation-specific conditions, regulations and requirements. Unions and employees are generally involved in the development of these policies and, in South Africa this interaction has typically been formal and enshrined in recognition agreements. Policies and agreements vary from region to region, taking into account local collective bargaining structures, legislation and site-specific circumstances. Local policies and agreements typically cover issues such as: the provision of personal protective equipment, joint management-employee safety and health committees, participation of employee representatives in inspection and audits, training and education, grievance mechanisms, and the right to refuse unsafe work.

Safety and health systems

The management of safety and health at an operational level is the responsibility of line management, with the general manager of each operation ultimately being accountable for performance. He or she is, in turn, supported by specialist safety and health personnel at corporate, regional and operational levels. Health care services are provided to all employees at all operations and, in some cases, to their dependants. In South Africa and at many of the African operations, health care services are largely made available by company-owned and managed facilities, while at other operations these are outsourced to third-party service providers. All employees have access to primary health care, occupational health care and emergency medical facilities as a minimum. If appropriate company hospital facilities are not available, mechanisms are in place for onward referral.

The roll-out of the OHSAS 18001 safety and health management standard continued during the year, with the final two operations being recommended for certification by year-end. A safety and health systems and practice assessment protocol which is consistent with OHSAS 18001 was developed and implemented at all operations during the course of the year. All relevant role-players have been familiarised with its requirements, and the majority of the preliminary assessments had been carried out by year-end. See case study, Implementing a health and safety systems and practice protocol to monitor compliance with OHSAS 18001.

Work on safety improvement programmes began during the year at exploration sites in the Democratic Republic of Congo (DRC), Colombia and Tropicana (Australia). An assessment of existing systems was undertaken in the DRC and in Colombia, where a dedicated safety and health manager was also appointed.

Risk assessments and accident reviews

The identification and mitigation of risk is a vital part of the company’s operations and an integral part of the safety and health management process. Matters relating to safety and health are considered as part of the group’s risk management strategy. Risk assessments are conducted regularly at both a group and operational level and are related to specific events or issues.

In the event of a fatal accident, a formal review is undertaken by mine management, with unions (in South Africa) and the regulatory authorities. In South Africa, the Department Minerals and Energy (DME) undertakes an in loco inspection immediately following a fatal accident, as well as an independent inquiry to which management and unions contribute. In addition, all fatal accidents within the group are the subject of an intensive internal investigation by a corporate office team, whose findings and recommendations are presented to, and considered, by the group’s executive team.

Regulatory issues

In South Africa, there were major developments on safety and health front from a regulatory point of view.

• Safety audits as instituted by the former President of the country, Thabo Mbeki, were undertaken across the mining industry to determine the degree of compliance by mining operations with safety and health provisions as prescribed by the Mine Health and Safety Act. All of AngloGold Ashanti’s operations in South Africa were audited. The results of the audits had recently been made public at the time of drafting of this report, and were in the process of being analysed.
• Amendments to the Mine Health and Safety Act were tabled before Parliament and subsequently approved by the Parliamentary Portfolio Committee and the National Assembly in September 2008. They are expected to be promulgated during 2009. AngloGold Ashanti, through the Chamber of Mines, made submissions to the DME on the content of the amendments. The amendments provide for a significant broadening of the powers of the DME’s safety inspectorate, with provisions for higher fines for non-compliance as well as greater levels of criminal liability for employers.

Also during the year, the Council of Australian Governments identified national harmonisation of occupational safety and health laws as a priority and a national review is being undertaken.

Employee involvement

In line with the group’s overall commitment to collective bargaining and employee participation, a great deal of emphasis is placed on the involvement of employees in both safety and health strategy and performance. This is reflected in the design of the safety and health transformation process discussed above.

Agreements governing the management of safety and health, which were negotiated with representative unions or were developed with the co-operation of employees, are in place at all operations.

Around 83% of the group’s global workforce are either members of a recognised union or participate in a formal collective bargaining process. Based on this statistic and the group’s emphasis on a participative approach to safety and health, it is estimated that at least 90% of the total workforce is represented in formal joint management-employee safety and health committees. Their role is to monitor and advise on occupational safety and health programmes, and hence participate in the management of safety and health through forums created specifically for this purpose.

More detail on the the level of employee participation is given below.

• In Argentina, there is strong employee participation in safety and health matters.
• While the Australian workforce is not unionised, employees are encouraged to participate in matters relating to safety and health. All work groups have designated safety and health representatives who have been trained for that role and work in co-operation with management to address matters of concern and inspect areas of work.
• In Brazil, while union agreements do not formally address safety and health issues, employees and unions are actively involved in formal joint health and safety committees that help monitor and advise on safety and health matters. An internal committee for accident prevention (called CIPAMIN) has been set up at both Brasil Mineração and Serra Grande and provides for employee representatives to actively participate in risk identification and mitigation.
• In Ghana, collective bargaining agreements cover safety and health management and relationships. At both Iduapriem and Obuasi, safety and health representatives from each department participate in monthly safety and health meetings.
• In Guinea, the union is involved in safety and health matters. Safety and health champions nominated from each department participate in monthly safety and health meetings, and in accident investigations.
• In Mali, the union (which represents all Malian employees) participates in the election of safety representatives and participates in monthly safety and health management meetings as well as in investigations into accidents and incidents. All safety representatives meet once a quarter.
• In Namibia, a safety and health agreement with the union (which represents 80% of the workforce) governs the management of safety and health.
• In South Africa, each mine and plant has a formal safety and health agreement that has been developed between management and union representatives. Around 95% of the workforce is covered by collective bargaining agreements. These agreements have been developed to meet the requirements of the Mine Health and Safety Act and consider mine- and plant-specific circumstances. In line with the Act, joint health and safety committees function at each operation. In 2008, 36 full-time safety and health stewards and 2,666 safety and health representatives (who are elected by employees, trained by management and designated and appointed in terms of the Act) were in place.
• In Tanzania, employee representatives (one for every 50 employees) make up the Safety and Health Representative Committee which meets twice a month with management to discuss relevant issues.
• CC&V in the USA is not unionised. Employees are encouraged to participate in safety and health issues and regular safety meetings are held, from weekly meetings with operating staff to joint meetings once per month.

The provision of training – both formal and on-the-job training – in respect of safety and health matters receives priority, with an emphasis on ensuring that employees are both competent to carry out their duties and their responsibilities safely, and that they are able to identify and deal with hazards in the workplace. A wide range of safety and health training initiatives were undertaken at the various operations in 2008. Further detail may be found in the country reports. The safety and health area has not escaped the pressure of skills shortages experienced elsewhere in the group. High staff turnover levels among safety and health specialists is an area of concern and plans to address this are being put in place at the affected operations.

Contractors employed to undertake short- and long-term mining operations, and specialist services, are subject to the group’s safety and health policies and practices. The group’s safety and health policy, procedures, standards and requirements form an integral part of procurement and contractor engagement processes. Contractor safety and health performance is a key criterion when the company considers the appointment or re-appointment of contractors.

Emergency preparedness

Emergency preparedness plans are in place at all operations except Navachab, where a draft plan is currently being finalised. Emergency preparedness plans are reviewed regularly and regular training is undertaken. Where communities are located in close proximity to operations, communities are involved in emergency preparations. See Country and Operational Reports for further detail on specific plans in place at each operation.