South Africa
AngloGold Ashanti’s South African operations comprise six deep-level mines and one surface operation. They are:
- The Vaal River operations – Great Noligwa, Kopanang, Moab Khotsong and the surface sources operations. The fourth deep-level mine in this region, Tau Lekoa, was sold during the course of the year; and
- The West Wits operations – Mponeng, Savuka and TauTona.
Together, these operations produced 1.78Moz of gold in 2010, or 39% of group production, and 1.46Mlbs of uranium as a by-product. The South African operations employed 35,660 people in 2010. Total cash costs in US dollar terms increased by 28% to $598/oz.
Total capital expenditure for the region was $424m, an increase of 10% on the $385m spent in 2009.
The Mineral Resource in South Africa totalled 97.90Moz at year-end, including Ore Reserve of 30.38Moz.
Contribution to group production
Contribution to South Africa production
– by operation
Gold production
(000oz)
Capital expenditure
($m)
Total cash cost
($/oz)
Total number of employees*
Vaal River – Great Noligwa
Key statistics
| Great Noligwa | 2010 | 2009 | 2008 | |
|---|---|---|---|---|
| Pay limit | (oz/t) | 0.36 | 0.43 | 0.29 |
| (g/t) | 11.69 | 14.90 | 10.07 | |
| Recovered grade | (oz/t) | 0.175 | 0.167 | 0.214 |
| (g/t) | 5.99 | 5.73 | 7.33 | |
| Gold production | (000oz) | 132 | 158 | 330 |
| Total cash costs | ($/oz) | 884 | 794 | 458 |
| Total production costs | ($/oz) | 1,129 | 990 | 557 |
| Capital expenditure | ($m) | 24 | 24 | 26 |
| Total number of employees | 3,315 | 4,739 | 5,743 | |
| Employees | 3,225 | 4,612 | 5,472 | |
| Contractors | 90 | 127 | 271 | |
| All injury frequency rate | (per million hours worked) | 21.63 | 17.51 | 28.54 |
| Outlook for 2011 | ||||
|---|---|---|---|---|
| Production | (000oz) | 144 – 150 | ||
| Total cash costs | ($/oz) | 756 – 784 | ||
| Capital expenditure | ($m) | 29 |
Gold production
(000oz)
Capital expenditure
($m)
Total cash cost
($/oz)
Total number of employees*
Description
Great Noligwa adjoins Kopanang and Moab Khotsong and is located close to the town of Orkney near the Vaal River. The Vaal Reef, the primary reef, and the Crystalkop Reef, a secondary reef, are mined here.
This mining operation consists of a twin-shaft system and operates over eight main levels at an average depth of 2,400m below surface.
Given the geological complexity of the orebody at Great Noligwa, a scattered mining method is employed. The mine shares a milling and treatment circuit with Moab Khotsong and Kopanang, which applies conventional crushing, screening, SAG grinding and carbon-in-leach (CIL) processes to treat the ore and extract gold.
Operating performance
Gold production declined by 16% as planned to 132,000oz, from 158,000oz in 2009. This was largely as a result of the redesign of the mine plan and layout, and a shift in operational focus to pillar extraction. This redesign resulted in a reduction in the extent of underground resources and in lower volumes being mined. Consequently, tonnages milled fell by 20% and reef development by 85%. The latter was also affected by the complex geological structures encountered. Yield rose by 5% with the mining of higher grade areas and an increase in gold produced from vamping operations.
Total cash costs increased by 11% to $884/oz from $794/oz the previous year, due mainly to the mine redesign, inflationary pressure on labour, power and stores, royalty payments which came into effect on 1 March 2010, and a stronger currency.
Capital expenditure of R173m ($24m) was split between R96m($13m) for Ore Reserve development, stay-in-business capital of R71m ($10m) for upgrades to both horizontal and vertical transport, accessing old pillar areas and the upgrade of plant infrastructure, and R6m ($1m) on growth initiatives.
Growth prospects
As a mature operation, Great Noligwa has converted from conventional scattered mining to pillar mining for the remainder of its operational life. The Vaal Reef, which has been the most economically viable reef at Great Noligwa, is mined extensively. The less economically viable Crystalkop Reef is also being exploited, together with viable pillars containing the Vaal Reef. Hence, the life extension opportunity is limited to the inclusion of a few Vaal and Crystalkop Reef haulage pillars that were previously not part of the Ore Reserve. A feasibility study was conducted to determine the viability of establishing alternate routes for men, material, ore and ventilation to replace these haulages. This study showed that portions of these pillars can be mined and they have thus been included in the business plan.
Outlook for 2011
Production in 2011 is projected to increase to between 144,000oz and 150,000oz. Total unit cash costs are expected to improve to between $756/oz and $784/oz, largely due to the higher gold production planned, an increase in the by-product contribution from uranium production and other associated benefits following the restructuring of the operation in 2010.
Capital expenditure is forecast at R210m ($29m), with R97m ($13m) earmarked for Ore Reserve development and R113m ($15m) for stay-in-business capital covering upgrades to plant infrastructure, transport systems, staff accommodation and creating access to old pillar areas.
The rise in production in 2011 is based on increasing the gold recovered from vamping operations in old areas, as well as the mining of higher grade pillars. Mining during 2010 continued to expose complex geological structures, necessitating additional development in order to re-establish access and make areas available for further mining. Mining has almost progressed to the boundary limits, hence the increased dependency on pillars to maintain a reasonable level of production. These pillars require capital and a re-establishment programme to make them available for mining. Strict safety rules are in place to ensure safe extraction of the ore.
Project ONE was launched on 27 October 2010.
Sustainability
Great Noligwa was restructured during the year with the aim of reducing its overall operational footprint and to return it to profitability. Employees were offered the opportunity to apply for voluntary severance packages or transfer to other business units within the company. Labour unions were consulted on strategic matters throughout the process.
Transformation remains a strategic thrust of the mine and will receive continued attention during 2011.
Safety
There were no fatalities during 2010, with the mine achieving 1 million fatality-free shifts on 5 November 2010. The mine also achieved 269 white flag days, signifying the number of full days without a lost-time injury being reported on site.
The all injury frequency rate deteriorated to 21.63 per million hours worked recorded for the year (2009: 17.51).
The “White Flag Day Every Day”, “It’s OK to Stop” and “United for Safe Gold” were the major safety campaigns undertaken during the year. Other initiatives included daily shaft-based communication and a continuation of tours by management and union leadership to increase visibility. Safety stoppages initiated by management also had a positive impact on physical conditions underground. A safety workshop was held at which three strategic safety pillars were identified. Plans were made to address these issues and dates set for their implementation.
Great Noligwa maintained its OHSAS 18001 and ISO 14001 certification in 2010.
Community
Great Noligwa remained active in the community with various outreach projects. Donations were made to the following organisations:
- Triest Training Centre;
- Matlosana Hospice;
- Evannah Old Age Home;
- Dipapeng Disability Centre;
- Klerksdorp Baby House; and
- Stilfontein Welfare.
Environment
Great Noligwa retained its ISO 14001 certificate during the first advanced DQS audit conducted in August 2010. No environmental incidents were reported during the year.
New projects
The water separation project at Great Noligwa, aims to reduce the inflow of dirty water into the Great Noligwa gold plant process-water tank.
Vaal River – Kopanang
Key statistics
| Great Noligwa | 2010 | 2009 | 2008 | |
|---|---|---|---|---|
| Pay limit | (oz/t) | 0.41 | 0.40 | 0.32 |
| (g/t) | 13.08 | 13.85 | 11.07 | |
| Recovered grade | (oz/t) | 0.179 | 0.197 | 0.199 |
| (g/t) | 6.13 | 6.74 | 6.82 | |
| Gold production | (000oz) | 305 | 336 | 362 |
| Total cash costs | ($/oz) | 613 | 406 | 348 |
| Total production costs | ($/oz) | 867 | 586 | 492 |
| Capital expenditure | ($m) | 61 | 58 | 47 |
| Total number of employees | 5,938 | 6,059 | 6,031 | |
| Employees | 5,484 | 5,612 | 5,620 | |
| Contractors | 454 | 447 | 411 | |
| All injury frequency rate | (per million hours worked) | 21.86 | 22.71 | 25.29 |
| Outlook for 2011 | ||||
|---|---|---|---|---|
| Production | (000oz) | 326 – 340 | ||
| Total cash costs | ($/oz) | 599 – 622 | ||
| Capital expenditure | ($m) | 107 |
Gold production
(000oz)
Capital expenditure
($m)
Total cash cost
($/oz)
Total number of employees*
Description
The Kopanang mine, located in the Free State province roughly 170km southwest of Johannesburg, has been in production since 1984. Kopanang’s current mine lease incorporates an area of 35km2, directly west of neighbouring Great Noligwa and bound to the south by the Jersey Fault.
Kopanang exploits gold- and uranium-bearing conglomerates of the Central Rand Group of the Witwatersrand, the most important being the Vaal Reef. Gold is the primary commodity extracted with uranium oxide as a by-product. The Vaal Reef, the primary reef mined, is exploited at depths of between 1,300m and 2,600m below surface. Minor amounts of gold are also extracted from the secondary Crystalkop Reef, located about 250m above the Vaal Reef.
Given the complexity of the geology, scattered mining is employed and the orebody accessed mainly via footwall tunnelling, raised on dip of the reef and stoped on strike.
Kopanang uses conventional semi-autogenously grinding and carbon-in-pulp (CIP) technology to process gold. There are two streams of ore into the plant, one comprised mainly of Vaal Reef ore and the other fed exclusively with marginal oredump material. Roughly 60% of Kopanang’s ore is treated in this plant. The balance is sent to the Noligwa Gold Plant and South Uranium plant by rail for gold and uranium extraction.
Operating performance
Gold production fell 9% to 305,000oz in 2010, from 336,000oz in 2009. Total cash costs increased 51% to $613/oz as a result of the stronger currency, lower production, inflationary pressures on labour, power and stores, and royalty payments which came into effect on 1 March 2010.
A 13% decline in volumes mined was the major contributor to the drop in production, as were safety-related work stoppages, and lower-than-anticipated mining grades. The 9% decline in recovered grade was a function of the lower-grade areas mined, and the increase in dilution from tonnages treated at the waste washing plant. A waste washing plant to reduce dust by washing the fines from waste rock was commissioned. Additional labour was recruited during the second quarter to make up production lost owing to safety-related stoppages during the first half of the year. While these stoppages continued in the second half of the year, this initiative contributed 19,300oz towards the year’s total production.
Capital expenditure totalled R443m ($61m) for the year. This included R340m ($47m) on Ore Reserve development and stay-in-business capital of R103m ($14m).
Growth prospects
Life extension projects identified in 2010 were De Pont Landing and Altona, Gencor 1 East extension, Crystalkop Reef (C-Reef) Below 68 level, the Shaft Fault area and pillars. Additional information will be obtained from ongoing exploration to generate Mineral Resources for conversion to Ore Reserves. The mother hole drilled at the Gencor 1E area had intersected the reef which will be sampled early in 2011. Two more long inclined boreholes are planned from the same site for 2011.
Electro-hydraulic drilling, originally scheduled to commence in August 2010 in the De Pont Landing and Altona exploration areas, has been postponed to early 2011 due to ventilation requirements and the delay in the issuing of the prospecting rights for De Pont Landing. The Below 68 level project was also delayed due to ventilation requirements which affected electro-hydraulic drilling, while limited pneumatic drilling was done from the 68 DW4 8 crosscut. The bulk of the exploration programme has been deferred to 2011.
As a result of the C-Reef exploration programme, the Mineral Resource confidence increased and added 129,164oz to the planned Mineral Resource during 2010. The programme will continue into 2011.
The Shaft Fault drilling added 8,179oz to the Mineral Resource during 2010. This remains a very prospective target area for new Mineral Resource ounces and exploration here will continue during 2011.
Outlook
Gold production for 2011 is forecast at between 326,000oz and 340,000oz at a total cash cost of between $599/oz and $622/oz. The higher level of production relates to an overall increase in volumes mined which is expected to result from the implementation of Project ONE initiatives.
Understanding of the orebody ahead of the mining face will improve following an increase in geological drilling, as well as the assessment of true grade estimates of the orebody to the West through Long-Incline-Borehole (LIB) drilling, revised evaluation modelling and the introduction of ‘coffin sampling’ methodology. Improved drilling efficiencies are anticipated, following the change of drilling contractor in 2010. Project ONE will be implemented in 2011.
Total capital expenditure of R767m ($107m) will be spent on Ore Reserve development to improve and create mining flexibility, as well as stay-in-business capital related to the Kopanang plant. Ore Reserve development for 2011 remains a key focus in re-establishing the operation’s available Ore Reserves.
Sustainability
Safety and health
Regrettably, there were two fatal accidents – one each in March and September. This overshadowed a strong safety performance in the preceding months with the mine having achieved 1 million fatality-free shifts in February 2010. The all injury frequency rate improved from 22.71 per million hours worked in 2009 to 21.86 in 2010. Mitigation strategies were implemented, including improved support standards for development areas, to reduce the risks associated with horizontal transport and falls of ground.
Strategies for 2011 include improved dust management systems through a centralised blasting system, improved footwall and dust filtration systems and experimentation with intake ‘air scrubbing’ systems. Following the noise baseline risk assessment to be conducted in February 2011, the current hearing protection device system will be revised to ensure optimum protection from noise, based on occupational exposures.
The mine successfully achieved recertification for both ISO 14001 and OHSAS 18001.
More than 60% of employees, including contractors, underwent voluntary HIV testing during the year following a concerted effort by AngloGold Ashanti’s wellness counsellors, peer educators and its programmes.
Kopanang, Great Noligwa and Moab Khotsong, in conjunction with other mines in the region, regularly interact with the Department of Mineral Resources at a tripartite forum to discuss topical issues related to mining operations in North West Province.
General managers, safety managers, health and safety representatives, as well as unions and association representatives, meet with the state mine inspectors to discuss topical issues including regional health and safety statistics, focus areas and legislation trends.
Community
The mine hosted a number of underground visits from interested parties in the community, organised by Kopanang’s social committee, in partnership with a local non-governmental organisation.
A mathematics and science competition was launched for surrounding secondary schools with the aim of identifying and recognising students who excel in these subjects. Twenty-six children from five schools participated in this competition, which will be repeated. Kopanang is also represented in various activities in the surrounding area through the AngloGold Ashanti Fund’s Local Area Committee. These initiatives include the Winter Warming Project, which distributes blankets to the surrounding communities.
During 2010, the mine started its programme to accelerate the conversion of communal rooms in the Kopanang residence to single room accommodation – 198 single rooms were completed, compared to 54 in 2009. Capital has been approved to convert 208 rooms in 2011. Another 1,819 rooms are scheduled for conversion over the next three years.
Environment
An environmental management system (EMS) is in place to address the environmental impacts of the operation, including water and energy consumption, dust levels and potential groundwater pollution from the waste rock dump. To address the dust issue, a waste washing plant was installed and will be fully commissioned in 2011, along with additional dust suppression systems. Storm-water catchment facilities will be put in place and 20ha of phyto-remediation woodlands planted in 2011. Numerous projects resulted in reduced energy consumption from 32Gwh per month in 2003 to 24.5Gwh per month in 2010. Additional projects to reduce consumption to 23.4Gwh per month are planned in 2011 and 2012.
Kopanang retained its ISO 14001 certificate following an audit conducted in August 2010. No environmental incidents were reported during the year.
Vaal River – Moab Khotsong
Key statistics
| Moab Khotsong | 2010 | 2009 | 2008 | |
|---|---|---|---|---|
| Pay limit | (oz/t) | 0.49 | 0.60 | 0.69 |
| (g/t) | 15.87 | 20.57 | 23.51 | |
| Recovered grade | (oz/t) | 0.263 | 0.273 | 0.271 |
| (g/t) | 9.03 | 9.36 | 9.31 | |
| Gold production | (000oz) | 292 | 247 | 192 |
| Total cash costs | ($/oz) | 588 | 424 | 379 |
| Total production costs | ($/oz) | 982 | 737 | 632 |
| Capital expenditure | ($m) | 120 | 104 | 89 |
| Total number of employees | 6,452 | 6,069 | 4,737 | |
| Employees | 4,651 | 4,334 | 2,914 | |
| Contractors | 1,801 | 1,735 | 1,823 | |
| All injury frequency rate | (per million hours worked) | 19.72 | 28.82 | 38.24 |
| Outlook for 2011 | ||||
|---|---|---|---|---|
| Production | (000oz) | 296 – 310 | ||
| Total cash costs | ($/oz) | 597 – 620 | ||
| Capital expenditure | ($m) | 162 |
Gold production
(000oz)
Capital expenditure
($m)
Total cash cost
($/oz)
Total number of employees*
Description
Moab Khotsong is the newest deep-level gold mine in South Africa. It is situated near Orkney, Klerksdorp and Viljoenskroon, about 180km southwest of Johannesburg.
Following the successful exploration of the Vaal Reef in the Moab lease area, which lies to the south and is contiguous with Great Noligwa, a decision was taken in late 1989 to exploit the Moab Mineral Resource. Shaft sinking started in 1991 and stoping operations in November 2003. The mine is scheduled to reach full production in 2013.
A feasibility study of the lower mine (Zaaiplaats) was recently completed. The project will exploit the reef to depths of 3,455m below collar.
The main shaft was commissioned in June 2002 and the rock ventilation shaft in March 2003. Ore Reserve development on 85, 88, 92, 95, 98 and 101 levels is progressing to plan. Given the geological complexity of the Vaal Reef, scattered mining is employed.
Operating performance
Moab Khotsong continued to ramp-up its output. Production increased by 18% to 292,000oz in 2010, compared to 247,000oz the previous year. The operation is scheduled to reach full annual production of 368,000oz in 2013.
Total cash costs increased by 39%, as expected, to $588/oz, due mainly to inflationary pressures on the cost of labour, power and stores, royalty payments which came into effect on 1 March 2010 and the stronger currency.
Capital expenditure for the year totalled R879m ($120m), spent mainly on Ore Reserve development R593m ($81m), with the balance for stay-in-business capital R242m ($33m), Project Zaaiplaats phase 1 R23m ($3m) and exploration drilling R20m ($3m).
Mined grade decreased by 4% as mining took place in lower-grade areas in the older northern part of the mine. Volumes treated increased by 22%, mainly due to ramp-up activities. Production, however, was hampered by safety- and mining-related stoppages as well as complex geological structures. These issues are being reviewed. In order to obtain critical information timeously, a comprehensive risk-drilling programme was revised to include macro drilling up to three cross-cuts ahead of the current development ends, thus improving grade prediction and development planning. This allowed more proactive mine design and the opening up of reef, while the development of new raises provided additional grade information. Ore Reserve development and LIB drilling proceeded according to plan in 2010. The active drilling programme employs a minimum of five LIB machines to ameliorate the risk of intersecting dip features within the 12-month mining plan. There was also a focus on critical-path scheduling and increased development to open up Ore Reserves and create flexibility.
Project ONE was launched on 27 October 2010.
Growth prospects
The initial development of Moab Khotsong included the exploitation of adjacent ore blocks, including Zaaiplaats to the southwest and some 400m deeper than the existing mine. The first phase of Moab Khotsong’s business plan, excluding growth projects, sees the mine producing 3Moz of gold over the life of mine. The Zaaiplaats project provides an additional 5Moz (164t) and a life extension of some 15 years, as well as the potential to include additional blocks that rely on the new project infrastructure.
Study work on Project Zaaiplaats began in 2003 and was completed in 2006, following successful scoping and prefeasibility phases. The subsequent feasibility study was completed at the end of 2008 and showed competitive returns following several technical changes, such as flatter declines to be excavated by trackless machinery.
The intersection of geological structures in the current newer eastern portion of the mine, however, was more complex than originally understood, with a consequent impact on safety, the location of infrastructure and production and cost estimates. Accordingly, additional work was undertaken to gain a higher level of confidence in the geological structural setting.
As Moab itself has achieved a stable operating base, Project Zaaiplaats is set to get under way. The project will utilise a modified approach to pre-development in order to facilitate drilling platforms for gathering orebody and structural information, together with the possibility of earlier gold production given the anticipated drilling outcomes. This pre-development also retains the option to fundamentally change the orebody extraction approach by applying different technologies.
Outlook for 2011
Production in 2011 is projected to range between 296,000oz to 310,000oz at a total cash cost of between $597/oz and $620/oz. Capital expenditure of R1,160m ($162m) is planned, with R667m ($94m) allocated for Ore Reserve development, R273m ($38m) as stay-in-business expenditure and R220m ($31m) for growth projects, comprising mainly Project Zaaiplaats, and the exploration drilling programme.
Sustainability
The labour relations climate at the mine was stable during the year, with unions actively consulted on matters affecting their members and wherever possible involved in strategic issues affecting the operation. National Union of Mineworkers’ representatives hold monthly meetings with management while ad hoc engagements are expedited quickly to discuss issues of immediate concern.
Workforce transformation in line with South Africa’s employment equity goals remains a strategic thrust for the mine and the company as a whole and will receive continued attention during 2011.
Safety
The mine achieved one million fatality free shifts in January 2010. Tragically, however, two fatalities were recorded in March and June, following incidents involving a fall-of-ground and horizontal transport.
The all injury frequency rate improved 32% year-on-year, to 19.72 per million hours worked (2009: 28.82).
An interpersonal communication strategy yielded improvements in personal safety during the second half of 2010, while an aggressive and rigorous audit protocol further improved safety in individual workplaces.
A safety workshop was held and three strategic safety pillars identified. Action plans to address these were devised with the related implementation dates being the focus of 2011. These pillars include:
- removing people from risk;
- planning work; and
- behaviour.
OHSAS 18001 and ISO 14001 accreditation were received during 2010 following external audits.
Community
As part of AngloGold Ashanti’s policy of anticipating and responding quickly and efficiently to immediate community needs, Moab Khotsong has a management representative on the local area committee (LAC). This committee was established by the AngloGold Ashanti Fund to disburse charitable donations to communities neighbouring the company’s operations. In addition to LAC funding, Moab Khotsong made donations during the year to:
- Stilfontein and Jouberton Anglican Church, specifically for the care of the elderly;
- Kanana soup kitchen;
- Bosasa Youth Development Centre;
- Hoërskool Schoonspruit, a local high school;
- SPCA;
- Triest Training Centre; and
- Youth Eagle Christian United Movement.
In order to improve the literacy of its workforce and those living in areas nearby, AngloGold Ashanti provides transport for students from neighbouring communities who undertake evening classes in adult basic education and training.
Environment
Moab Khotsong retained its ISO 14001 certification during the first advanced DQS audit conducted in July 2010. No reportable environmental incidents were recorded during the year.
Environmental projects
An Environmental Impact Assessment of the new chilled-water reservoir is in progress and is expected to be completed by the end of February 2011.
The clean and dirty water separation project was completed. This project aimed to reduce dirty water inflows into the dam and determine the ultimate volumes required for the second dam.
Vaal River and West Wits – Surface operations
Key statistics – Surface sources – Gold
| Surface operations | 2010 | 2009(1) | 2008(1) | |
|---|---|---|---|---|
| Pay limit | (oz/t) | 0.010 | 0.007 | 0.007 |
| (g/t) | 0.290 | 0.225 | 0.206 | |
| Recovered grade | (oz/t) | 0.016 | 0.015 | 0.011 |
| (g/t) | 0.54 | 0.53 | 0.36 | |
| Gold production | (000oz) | 179 | 164 | 92 |
| Total cash costs | ($/oz) | 485 | 341 | 440 |
| Total production costs | ($/oz) | 516 | 355 | 469 |
| Capital expenditure | ($m) | 3 | 3 | 1 |
| Total number of employees (2) | 374 | 234 | 234 | |
| Employees | 374 | 228 | 227 | |
| Contractors | – | 6 | 7 | |
| All injury frequency rate | (per million hours worked) | 5.99 | 9.10 | 11.80 |
- (1 ) For the 2009 and 2008 years, the West Wits surface operations were included in TauTona.
- (2 ) The number of employees increased from 2009 to 2010 as the West Gold Plant was classified as a dedicated Surface Sources Plant and consequently all its employees were costed to Surface Sources.
| Outlook for 2011 | |||||
|---|---|---|---|---|---|
| Production | - gold | (000oz) | 155 – 162 | ||
| - uranium | (Mlbs) | 1.26 | |||
| Total cash costs | ($/oz) | 625 – 648 | |||
| Capital expenditure | ($m) | 7 | |||
Gold production
(000oz)
Capital expenditure
($m)
Total cash cost
($/oz)
Total number of employees*
Key statistics – Surface sources – Uranium
| Surface operations | 2010 | 2009 | 2008 | |
|---|---|---|---|---|
| Pay limit | (lb/t) | 0.316 | 0.362 | 0.331 |
| (g/t) | 0.143 | 0.164 | 0.150 | |
| Recovered grade | (lb/t) | 0.622 | 0.584 | 0.508 |
| (g/t) | 0.282 | 0.265 | 0.231 | |
| Uranium production | (000lb) | 1,462 | 1,442 | 1,283 |
| Capital expenditure | ($m) | 12 | 5 | 6 |
| Total number of employees | 213 | 221 | 229 | |
| Employees | 185 | 194 | 193 | |
| Contractors | 28 | 27 | 36 |
Description
South Africa Metallurgy encompasses AngloGold Ashanti’s portfolio of gold and uranium processing plants in South Africa, as well as its Surface Operations, which extract gold and uranium from tailings and rock dumps at surface. This operating unit also produces backfill essential for mining operations. The producing divisions include:
- Vaal River Gold: Kopanang Gold Plant, West Gold Plant, East Gold and Archive Plant and Vaal River Tailings;
- Vaal River Uranium: Noligwa Gold Plant, Mispah Plant, South Uranium Plant and Nufcor;
- West Wits Metallurgy: Mponeng Plant (including a backfill plant), Savuka Plant, West Wits Tailings; and
- Vaal River and West Wits Chemical Laboratories.
Operating performance
Gold production increased by 9% to 179,000oz, compared with 164,000oz in 2009.
Total cash costs increased by 42% to $485/oz, from $341/oz the previous year, due mainly to increased electricity tariffs, higher contractors' costs and the stronger rand.
Uranium production increased 1% to 1.46Mlbs in 2010, compared with 1.44Mlbs in 2009. A 6% increase in grade, improved recovery and steady plant operations offset a 6% drop in tonnages treated from the previous year.
Sulphuric acid
Both the East and South Flotation Plants, as well as the East Acid Plant were shut during the year as a cheaper product was available from external suppliers.
The BPF component of Project ONE was successfully implemented at the Savuka and Mponeng Gold Plants, with partial implementation during 2010 at the Noligwa Gold Plant and South Uranium Plant. Implementation of BPF will take place at West Kopanang and East Gold Plants during 2011.
Other aspects of Project ONE, namely SP and the Safety Framework and Engagement Process, have been initiated and are scheduled for implementation during 2011 and 2012.
Growth prospects
South Africa Metallurgy’s project pipeline:
Uranium is perceived as a growing opportunity within the South Africa region. The application of new technology has the potential to increase both the gold and uranium reserves.
Uranium Expansion Project:
An alternative strategy has been identified to increase uranium production, premised on improved utilisation of the uranium recovery process-plant stream. Processing of the highest-grade material will be prioritised and the process plants will be modified to remove throughput restrictions to increase capacity.
Higher utilisation will be realised by providing ore-surge capacity on surface and improving rail-network capacity to increase surface tramming tonnages. The surge storage will provide material for processing during weekends when no hoisting takes place from underground. Plant modifications will improve the processing efficiency of the Noligwa plant’s thickening circuit and ore reception areas. A feasibility study has identified that an additional 3.2Mlbs of uranium can be produced over the life of mine of Kopanang. Capital investment has been estimated at $27m. Detailed design will commence in 2011, ramping up to full production from the second quarter of 2012.
New acid storage section at South Uranium Plant:
Construction of a new acid storage section at the South Uranium Plant is in progress to take advantage of low acid prices during periods of market surplus. Mechanical installation is nearing completion and the tanks will be commissioned in the first quarter of 2011.
Kopanang waste washing plant:
The objective of this project is to recover extra gold from the Kopanang waste rock and to eliminate fine dust from the waste rock dump, which imposes an environmental liability on the mine. Construction was completed in the second quarter of 2010.
Mponeng feeder upgrades:
The Langlaagte chutes on the mill-feed belts are to be replaced with Weba chutes. An installation on one of the mills showed reduced occurrence of chokes giving more consistent mill feed and improved mill throughput. Installation of the second chute was completed in the fourth quarter of 2010 and the third chute will be installed in 2011.
Outlook for 2011
Gold:
Gold production from surface sources during 2011 is estimated at between 155,000oz and 162,000oz. This is dependent on reef deliveries from underground operations which will determine the volume of marginal ore-dump material processed.
Total cash costs of between $625/oz and $648/oz are expected.
Uranium:
Uranium production in 2011 is estimated to be about 1.26Mlbs, based on planned deliveries from Great Noligwa, Moab Khotsong and Kopanang mines.
Sustainability
Initiatives to improve the relationship with organised labour, particularly in West Wits, have begun with a focus on capacity building and roll-out of the company’s values.
Meeting employment equity targets remained key, with significant progress achieved during 2010. Historically disadvantaged South Africans accounted for 41.21% of all management roles, compared to 38.4% in 2009, while female representation across the workforce was 16.8% compared to 16% in 2009.
Safety
South Africa Metallurgy achieved a remarkable 12 million fatality-free shifts during 2010. The all injury frequency rate improved from 9.10 per million hours worked in 2009 to 5.99 in 2010 and the total number of ‘white flag days’, signifying days on which no injury occurred, increased from 307 in 2009 to 326 in 2010. Eight plants achieved more than 100 consecutive ‘white flag days’. OHSAS 18001 certification was maintained, ICMI compliance was re-certified and industry milestones for silica dust and noise were achieved.
Environment
As part of the phytoremediation programme, a total of 10ha was planted on the footprint of the East Pay Dam.
Various environmental projects were successfully implemented during the year, including:
- relining the No.2 Barren dam at South Uranium plant;
- construction of lined areas and bund walls at Noligwa Gold plant to manage clean and dirty water;
- construction of lined areas and bund walls at East Gold Acid Float (EGAF) plant to manage clean and dirty water;
- lining of the process water trench from EGAF plant to Central Spillage; and
- cleaning historical pyrite spills outside the Noligwa Gold plant.
ISO 14001 accreditation was successfully maintained during 2010.
A total of eight pre-closure sites were rehabilitated during the year. During the clean-up of the East Pay Dam footprint, 260,392t from the East Pay Dam, 2,101t from the site adjacent to EGAF and 3,522t from the black-reef area were loaded and transported to the screening plant for processing via the Archive mill. In addition, 29,126t of silt material was loaded and transported from the upper residence dam and 19,000t from the lower residence dam to the bunkers built on the old North Tailings Storage Facility.
A total of 51,408t of contaminated gold-bearing material was sold to a third party for processing.
An aggressive invader-plant eradication programme was undertaken in 2010. Independent consultants measured a significant reduction in the prevalence of the three invader plant species targeted.
There were 10 reportable environmental incidents, a marked decline from 2009 when there were 35 incidents. All of the 2010 incidents involved water dam overflows. Dam capacity has been increased and is in the process of being expanded further. Dam level alarms have also been installed to prevent recurrence. The programme to replace pipelines has borne fruit, with no incidents involving pipeline failures occurring during the year. The closure of the acid plant at the EGAF plant meant that there were also no reportable air emission incidents.
Bokkamp water management project:
Construction was undertaken of a storm water dam and pipeline system to eliminate the environmental impact of overflowing dams in the Vaal River area. The dam was completed during the third quarter of 2010 and is operational.
Plant demolition:
Demolition of redundant sections has been scheduled to reduce future environmental liability, with revenue from scrap sales to subsidise dismantling costs.
West Wits – Mponeng
Key statistics
| Mponeng | 2010 | 2009 | 2008 | |
|---|---|---|---|---|
| Pay limit | (oz/t) | 0.28 | 0.25 | 0.22 |
| (g/t) | 9.14 | 8.53 | 7.61 | |
| Recovered grade | (oz/t) | 0.276 | 0.253 | 0.292 |
| (g/t) | 9.48 | 8.66 | 10.02 | |
| Gold production | (000oz) | 532 | 520 | 600 |
| Total cash costs | ($/oz) | 453 | 329 | 249 |
| Total production costs | ($/oz) | 576 | 399 | 323 |
| Capital expenditure | ($m) | 122 | 109 | 86 |
| Total number of employees | 5,778 | 6,029 | 5,685 | |
| Employees | 5,732 | 5,926 | 5,482 | |
| Contractors | 46 | 103 | 203 | |
| All injury frequency rate | (per million hours worked) | 15.93 | 14.31 | 14.29 |
| Outlook for 2011 | ||||
|---|---|---|---|---|
| Production | (000oz) | 513 – 535 | ||
| Total cash costs | ($/oz) | 486 – 504 | ||
| Capital expenditure | ($m) | 210 |
Gold production
(000oz)
Capital expenditure
($m)
Total cash cost
($/oz)
Total number of employees*
Description
Mponeng is located between the towns of Carletonville and Fochville on the border between Gauteng and the North West Province, southwest of Johannesburg. The operation mines the Ventersdorp Contact Reef (VCR) at depths between 2,400m and 3,900m. A sequential-grid mining method is employed. Access to the reef is from the main haulage and return airway development, with cross-cuts developed every 212m to the reef horizon. Raises are then developed on-reef to the level aboveand the reef is stoped-out on strike.
The Mponeng lease area is constrained to the north by the TauTona and Savuka mines, to the east by Gold Fields Limited’s Driefontein mine and to the west by Harmony Gold Mining Limited’s Kusasalethu mine.
Mponeng comprises a twin-shaft system housing two vertical shafts and two service shafts. Ore is treated and smelted at the mine’s gold plant which has a monthly capacity of 160,000t. The plant uses two semi-autogenous (SAG) mills to process ore and the gold is extracted by means of CIP technology.
Operating performance
Mponeng’s gold production increased by 2% to 532,000oz in 2010, compared to 520,000oz in 2009. A 9% increase in grade contributed to the rise in production.
Total cash costs rose by 38% to $453/oz, due to the impact of the stronger currency, inflationary pressure on labour, power and stores and royalty payments which came into effect on 1 March 2010.
Capital expenditure for the year totalled R891m ($122m) and was primarily spent on the VCR Below 120 project R339m ($46m). In addition, capital of R330m ($45m) was spent on Ore Reserve development and R222m ($31m) on stay-in-business activities.
Growth prospects
Ventersdorp Contact Reef (VCR) Below 120 Project: Development is ahead of schedule and in line with the project plan. The estimated completion date is 2013 and full production is scheduled for 2016. The project is anticipated to recover 2Moz of gold at a cost of R2bn.
Carbon Leader Reef (CLR) Below 120 Project: A feasibility study currently under way indicates that this project, which targets the mining area from 120 to 141 levels of the Carbon Leader Reef horizon, has the potential to yield 11.3Moz of recovered gold. This project can be undertaken in a phased approach, accessing 123 and 126 levels first in order to bring gold forward. This initial phase could potentially recover 3.5Moz of gold. The feasibility study for this first phase will be completed in February 2012. Construction of the refrigeration infrastructure to enable an early start of the first phase will begin in the latter half of 2011. Feasibility studies for subsequent phases will be completed by December 2012.
Outlook for 2011
Production is forecast at between 513,000oz and 535,000oz at a total cash cost of between $486/oz and $504/oz.
Capital expenditure in 2011 is estimated at R1,493m ($210m), with R825m ($116m) designated for growth, including the VCR and CLR Below 120 projects and the balance for stay-in-business and Ore Reserve development activities.
Sustainability
Safety
Tragically, there were four fatalities at Mponeng during 2010. Two of the fatalities were of undetermined causes and are still pending classification upon completion of the DMR enquiry. The all injury frequency rate deteriorated to 15.93 per million hours worked from a rate of 14.31 in 2009.
The mine embarked on a number of safety initiatives in 2010. These included the introduction of detailed work packages in line with the implementation of BPF; the roll-out of the Safety Transformation programme; promotion of consecutive injury-free days; miner, artisan, team-leader and safety representative meetings; empowering of safety representatives and finally the application of the SANDLA safety system, which focuses on procedures, personal protective equipment and tools and equipment.
The Inspector of Mines issued Mponeng with 10 Section 54 directives during the year. Each directive resulted in Mponeng suspending operations fully or partially in order to comply with the inspector’s recommendations on safety aspects. In each case, the suspension order was lifted following investigation and consultation between management, organised labour and the DMR.
Occupational health and safety assessments for OHSAS 18001 first and second advance assessments were conducted in January and July 2010, with Mponeng retaining accreditation on both occasions.
Health
During 2010, some 111 new cases of occupational tuberculosis (TB) were diagnosed at Mponeng, at an annual incidence of 2%. By year-end, 58 employees were still receiving daily treatment for TB. In addition, 852 Mponeng employees were seen at the Wellness Clinic in the six-month period to December 2010, representing approximately 19% of the group 3-8 workforce. A total of 512 employees had received anti-retroviral therapy by the end of the year.
Training
Key successes of AngloGold Ashanti’s adult basic education and training (ABET) initiative at Mponeng included:
- Co-ordinating and hosting International Literacy Day with partners including the Mining Qualification Authority, the National Union of Mineworkers and other mining companies in the region. The event included more than 3,000 ABET learners, staff, representatives from the Department of Labour and other stakeholders;
- Providing learners with the opportunity to study for the national diploma (N1 and N2) courses at Wescol College; and
- Planning a library and resource centre for both AngloGold Ashanti’s ABET learners and members of the general community. This library will be an electronic learning centre.
Skills training opportunities were provided to employees and the community. Training opportunities exist in boiler-making, wiring, plumbing, carpentry, welding and computer training. Fifty-nine employees and 52 community members participated during the year.
Community
Mponeng’s ‘We Care Committee’, has formed partnerships in the host communities of Kokosi, Greenspark and Fochville, and is making a concerted effort to understand their environment, traditions and values.
Projects undertaken during 2010 included:
- Winnie the Pooh Nursery School, Greenspark: shelter for the school’s sandpit, provision of storage space, new tables, chairs and mattresses, a sustainable vegetable garden to feed children and sell surplus produce to the community to supplement funds;
- Old age centre, Greenspark: construction of shaded areas and provision of food parcels;
- Nursery School, Kokosi: provision of coats for school children during the winter months;
- Fochville Service centre: provision of food parcels;
- Welfare, Fochville: hosting a Christmas party and presents; and
- Fochville and Losberg Primary Schools, Fochville: provision of stationery for learners and other outreach projects.
Environment
In order to prevent the mine from impacting surface and ground water, a number of risk assessments and environmental investigations were conducted during the year. Most of these studies have been completed and the planning and execution of mitigation projects are under way. These include:
- Hydrological and waste assessments – the purchasing and installation of flumes and flow meters in the east and west trenches to measure clean storm water discharge;
- Completion of a legal compliance audit and a polychlorinated biphenyls (PCB) assessment. (PCBs are a group of synthetic oil-like chemicals of the organochlorine family which have been shown to possess carcinogenic properties and damage reproductive, neurological and immune systems of wildlife and humans);
- Coating and sealing of concrete-lined washing bays and waste transferring stations;
- Collection and disposal of asbestos waste;
- Eradication of alien and invader vegetation;
- Purchasing of high pressure cleaners; and
- Sampling and analysis of water discharge to demonstrate continual improvement in monitoring and managing process water.
An ISO 14001 first advancement assessment audit was conducted at Mponeng in August 2010, with the mine retaining its accreditation.
No reportable environmental incidents were recorded during the year.
West Wits – Savuka
Key statistics
| Savuka | 2010 | 2009 | 2008 | |
|---|---|---|---|---|
| Pay limit | (oz/t) | 0.56 | 0.78 | 0.43 |
| (g/t) | 17.86 | 26.74 | 14.91 | |
| Recovered grade | (oz/t) | 0.155 | 0.159 | 0.183 |
| (g/t) | 5.30 | 5.45 | 6.28 | |
| Gold production | (000oz) | 22 | 30 | 66 |
| Total cash costs | ($/oz) | 1,100 | 1,115 | 411 |
| Total production costs | ($/oz) | 1,387 | 1,387 | 518 |
| Capital expenditure | ($m) | 9 | 13 | 11 |
| Total number of employees | 981 | 1,054 | 1,224 | |
| Employees | 952 | 1,019 | 1,179 | |
| Contractors | 29 | 35 | 45 | |
| All injury frequency rate | (per million hours worked) | 7.69 | 13.23 | 19.82 |
| Outlook for 2011 | ||||
|---|---|---|---|---|
| Production | (000oz) | 24 – 25 | ||
| Total cash costs | ($/oz) | 1,098 – 1,139 | ||
| Capital expenditure | ($m) | 3 | ||
Gold production
(000oz)
Capital expenditure
($m)
Total cash cost
($/oz)
Total number of employees*
Description
Savuka is situated on the West Wits line in the province of Gauteng, approximately 70km southwest of Johannesburg. Savuka is close to the town of Carletonville. The Carbon Leader Reef (CLR) is mined at depths varying between 3,137m and 3,457m below surface and the Ventersdorp Contact Reef (VCR) at a depth of 1,808m below surface.
The Savuka lease area is constrained to the north and northwest by DRDGOLD Limited’s Blyvooruitzicht Mine, to the east by TauTona, to the west by Harmony’s Kusasalethu mine, and to the south by Mponeng.
Operating performance
Savuka produced 22,000oz of gold during 2010, compared with 30,000oz the previous year. Total cash costs decreased by 1% to $1,100/oz, from $1,115/oz in 2009, due primarily to insurance recoveries.
Savuka’s operations continued to bear the impact of the seismic event that occurred in May 2009 as rehabilitation work continued during 2010. This resulted in production taking place in the VCR upper level in the first half of the year due to limited access to the CLR. In the interests of capital efficiency, a decision was made in late 2010 to place the mine on care and maintenance and to access its Ore Reserves from the larger, neighbouring Mponeng operation in future.
An insurance claim, covering normal business interruption and material damage was lodged. The payments received and credited to working costs, were R85m ($11m) in June and R37m ($5m) in September.
Capital expenditure declined to R69m ($9m) in 2010, and was spent on sustaining infrastructure. All Ore Reserve development was halted as the mine prepared for transition to care and maintenance.
Outlook for 2011
Several strategic options are currently being considered for Savuka. These options vary from placing the operation on care and maintenance to a continuation of mining activities.
It is anticipated that a formal decision on the future of Savuka will be made by the end of March 2011.
Sustainability
Safety
The all injury frequency rate improved from 13.23 in 2009 to 7.69 per million hours worked in 2010. There were no fatalities during 2010.
Savuka also retained its OHSAS 18001 certification following an audit that was conducted during the course of the year.
The mine continued implementation of the parallel safety initiatives initiated in 2008, including Goldsafe days; the promotion of team-based processes, mass open-air meetings and monthly miner, artisan, team leader and safety representative meetings.
Savuka also participated in AngloGold Ashanti’s successful roll-out of the ‘It’s OK to stop’ campaign. In addition, various internal safety audits were conducted to enable management to address and mitigate the risks identified in the process. The AuRisk system was implemented to address risks at the mine.
Community
Savuka‘s community programme is managed in tandem with that of the TauTona mine. (See TauTona community initiatives).
Environment
An ISO 14001 first advance assessment audit was conducted at Savuka in September 2010, with the operation retaining its accreditation.
The environmental closure plan has been assessed. Pumping will be dealt with through Mponeng and TauTona. Environment-related projects for TauTona/Savuka include the establishment of a centralised oil store and the construction of a storm-water channel at the internal mine store yard.
No reportable environmental incidents were recorded during the year.
West Wits – TauTona
Key statistics
| TauTona | 2010 | 2009(1) | 2008(1) | |
|---|---|---|---|---|
| Pay limit | (oz/t) | 0.60 | 0.74 | 0.44 |
| (g/t) | 19.27 | 25.33 | 15.05 | |
| Recovered grade* | (oz/t) | 0.204 | 0.213 | 0.253 |
| (g/t) | 7.01 | 7.29 | 8.66 | |
| Gold production | (000oz) | 259 | 218 | 314 |
| Total cash costs | ($/oz) | 700 | 559 | 374 |
| Total production costs | ($/oz) | 980 | 797 | 509 |
| Capital expenditure | ($m) | 75 | 57 | 60 |
| Total number of employees | 4,609 | 4,293 | 4,623 | |
| Employees | 4,137 | 3,842 | 3,849 | |
| Contractors | 472 | 451 | 774 | |
| All injury frequency rate | (per million hours worked) | 19.03 | 15.84 | 19.00 |
* Underground operation.
(1) The 2009 and 2008 years include the results of the West Wits Surface operations.
| Outlook for 2011 | ||||
|---|---|---|---|---|
| Production | (000oz) | 259 – 270 | ||
| Total cash costs | ($/oz) | 718 – 745 | ||
| Capital expenditure | ($m) | 82 |
Gold production
(000oz)
Capital expenditure
($m)
Total cash cost
($/oz)
Total number of employees*
Description
TauTona lies on the West Wits Line, just south of Carletonville in Gauteng and about 70km southwest of Johannesburg. Mining at TauTona takes place at depths of 1,850m to 3,450m. The mine has a three-shaft system, supported by secondary and tertiary shafts and is in the process of converting from longwall mining to scattered-grid mining. This change in mining method was necessitated by the increased incidence of complex geology and the unsuitability of the current method for mining through the Pretorius fault. The change will also lead to improved safety.
TauTona shares a processing plant with Savuka. The facility currently has a monthly capacity of 180,000t and uses conventional milling to crush the ore and a CIP plant to treat it. Once the carbon has been removed from the ore, it is transported to the gold plant at Mponeng for elution electro-winning, smelting and the final recovery of the gold.
Operating performance
Production at TauTona rose 19% to 259,000oz during 2010, compared with 218,000oz the previous year. Cash costs rose 25% to $700/oz, from $559/oz in 2009, due mainly to inflationary pressure on the cost of labour, power and stores, royalty payments which came into effect on 1 March 2010 and a stronger currency.
Capital expenditure totalled R545m ($75m), which included R162m ($22m) in stay-in-business expenditure and R371m ($51m) on Ore Reserve development. Additional expenditure was required for the steelwork to complete shaft rehabilitation.
The improvement in production was due largely to the successful resumption of mining in January 2010 following closure of the shaft in October 2009. The positive production performance was, however, affected by a Section 54 stoppage imposed on all tramming activities during September by the Department of Mineral Resources.
Project ONE was officially launched on 26 October 2010. A project support team was established and trained. Site configuration and employee training have commenced with full implementation scheduled for the end of September 2011.
Growth projects
CLR Below 120 project: The original project scope was to develop a twin-shaft system – one for men and material and the other a rock decline – to access and mine below the 120 level. Initial production targets were around 46.3t or 1.5Moz of recovered gold, including 42.9t or 1.4Moz directly from the project and the balance from tailings, which would contribute significantly to TauTona’s gold production. Following a major seismic event which closed off one of the two access routes, the project was reviewed and impaired in January 2009. A decision was made to limit the scope of the project to the development of the rock decline to 123 level. As a result of unfavourable geological drilling results and a significant increase in the latest cost estimate, the project has been suspended. The project area may be accessed at a later date from Mponeng.
CLR Shaft Pillar Extraction Project: The project was designed to enable stoping operations to be conducted up to an infrastructural zone of influence. However, given the safety and fall-of-ground risks, a decision was made to halt mining of this pillar. Only 65% (434,000oz) of the targeted production was achieved from this project. Capital expenditure on the project was R281m ($34m).
VCR Pillar Project: The aim of this project is to provide the necessary infrastructure to access the VCR pillar area. Production began in 2005 and development was scheduled to have been completed in 2010. Total production was estimated at almost 200,000oz in all at a capital cost of R123m ($14m), most of which has been spent. Following a seismic event in the shaft and after further modelling done by the Rock Mechanics Department, it was decided to stop mining the VCR pillar. As at December 2010, 141,000oz had been produced from this project.
Outlook for 2011
Production in 2011 is projected to be between 259,000oz and 270,000oz. The higher production output relates to an overall increase in yield to an average 7.6g/t. Total cash costs of between $718/oz and $745/oz are forecast.
Capital expenditure totalling R586m ($82m) is planned for 2011 and will be spent mostly on Ore Reserve development and stay-in-business projects.
Sustainability
Safety
Tragically, two fatalities occurred at TauTona during 2010 resulting from accidents related to winches and horizontal transport. The all injury frequency rate per million hours worked deteriorated from 15.84 in 2009 to 19.03 per million hours worked in 2010.
TauTona retained its OHSAS 18001 certification following an audit conducted during the second quarter of 2010 as the mine implemented the behaviour based safety observations programme to audit the behaviour of the mine’s workforce and adopted the MOSH system to further enhance the mine’s safety performance. Shaft infrastructure upgrades continued into 2010 following an incident in the fourth quarter of 2009, when a length of penthouse steel fell down the sub-shaft, damaging infrastructure and prompting the suspension of operations while a full inspection was undertaken.
Mining through complex geology, including the Pretorius fault zone, represented one of the chief safety challenges during the year. TauTona continued with the implementation of parallel safety initiatives which begun in 2008, including, the ongoing roll-out of the ‘It is OK to Stop’ principle to all employees, the White Flag drive and the Laduma for Safety and wellness days. The monitoring of emergency escape routes was improved.
On 2 October 2010, TauTona achieved two years without a fall-of-ground fatality, demonstrating the significant progress made in mitigating one of the most important risks related to deep-level, underground mining. The AuRisk system was implemented to address risk at the mine.
Community
TauTona plays an active role in supporting various community projects in the Merofong district. AngloGold Ashanti made donations to local organisations during the year, including:
- Carletonville Home Based Centre;
- Avondgloor Old Age Home;
- Suid-Afrikaanse Vroue Federasie (SAVF); and
- Timber Twig Pre-Primary School.
Environment
An ISO 14001 first advancement assessment audit was conducted at TauTona in September 2010, with the operation retaining its accreditation.
Additional projects undertaken during the year to minimise the operation’s environmental impacts included:
- Upgrading of the waste separation area to improve waste handling and storage, thereby improving recycling capacity;
- The cleanup and removal of steel and redundant equipment which formed part of the backfill testing plant, in order to reduce the size of the mine’s footprint; and
- Relocation of the internal mine store and equipment from the ESKOM servitude, bringing TauTona in line with safety and legal requirements on power cabling running through the mine area.
Additional focus areas with regard to environmental aspects included:
- Minimising refrigeration gasses (R134a and R11) that are used in the refrigeration plants as refrigerant to supply cooling power to underground workings;
- Management of hazardous material and waste, specifically hydrocarbons, chemicals and flourescent tube light bulbs;
- The management of clean and dirty water at TauTona; and
- Water and electricity usage.
No reportable environmental incidents were recorded during the year.