Anglo American Plc · LSE:AAL
Anglo American — Business for Social Responsibility Conference 2007
18 slides from Anglo American's conference presentation, Oct 24, 2007
Slide 1: Reflections on Corporate Responsibility from the Extractive Sector
Reflections on Corporate Responsibility from the Extractive Sector Cynthia Carroll, Chief Executive, Anglo American plc Business for Social Responsibility Conference San Francisco, 24 October 2007
Slide 2: Agenda
Agenda • Introduction to Anglo American • Key challenges for the mining sector • Anglo’s responses – selected examples • The role of business in development 2
Slide 3: Anglo American
Anglo American • Founded in South Africa in 1917 • Opposition to apartheid • Listed in London in 1999 • Pioneering HIV/AIDS programmes: – 11,500+ on health and wellness programmes – c.5,000 employees on anti-retrovirals • Transformation into focused mining group 3
Slide 4: Workplace Safety
Workplace Safety • Our overriding value • Major challenge: – “Received wisdom” on dangers of mining – Difficult, deep underground working conditions • Culture change and new expectations: – Aim to be mine safety leader 4
Slide 5: Women in Mining
Women in Mining • Mining has a poor record in integrating women • Only 10 percent of Anglo’s workforce is female • Women have proven they can contribute across all areas of our business • Broaden talent pool at time of skills shortages • Aim to make Anglo a diversity leader 5
Slide 6: Mining and Sustainable Development
Mining and Sustainable Development • Mining firms must earn their licence to operate: – This is more than just successful permitting • Excellence in sustainable development is a source of competitive advantage • Our aim: to leave behind a positive legacy for our communities 6
Slide 7: Distribution of Economic Benefits
Distribution of Economic Benefits Anglo American – 2006 Financial Year Taxes collected Distribution $ million Taxes borne Suppliers 17,226 Interest paid Employees 4,860 Dividends Dividends 3,222 Interest paid 400 Taxes borne* 3,119 Employees Taxes collected* 1,336 Suppliers 7
Slide 8: Mining and development
Mining and development • Priorities for responsible mining firms: – Paying taxes where we operate – Ensuring that we replace the natural capital we extract with social, financial, human and manufactured capitals – Contributing to wider development and poverty alleviation – Partnership-based approach
Slide 9: Challenges for the Mining Sector
Challenges for the Mining Sector • Large and immobile assets • Creating sustainable benefits • Energy security and climate change • Preventing the “Resource Curse” • Resource Nationalism 9
Slide 10: Socio-Economic Assessment Toolbox
Socio-Economic Assessment Toolbox Anglo’s SEAT process: • Profiling communities • Stakeholder engagement • Development of management plans • Public reporting back to stakeholders 10
Slide 11: SEAT – Key Lesson Learned
SEAT – Key Lesson Learned • Access to economic opportunities • Stakeholder perceptions are their realities • Better understanding of local communities and their concerns – And of dynamics within communities 11
Slide 12: Anglo Zimele
Anglo Zimele • South African enterprise development unit • Time limited equity and loan support on commercial terms • Extensive mentoring: – At least as important as financial support • ~45 company portfolio at any one time • High success rates; wider adoption 12
Slide 13: Energy Security & Climate Change
Energy Security & Climate Change • Our interest is clear: – Energy intensity – Coal production • Coal will continue to be an important fuel, but must be used cleanly • Business must play a leading role • Regulatory certainty required • Investment in new technologies 13
Slide 14: Improving Macro-Economic Impacts
Improving Macro-Economic Impacts • The “Resource Curse” is not inevitable: • Chile and Botswana are success stories • Challenge is good governance • Local and national governance are critical to successful exploitation of resources: – Responsible operators are important – Partnership working require
Slide 15: Resource Nationalism
Resource Nationalism • Can come in many forms: – Nationalisation – Changes to fiscal regimes – Downstream requirements – Strategic needs of leading consuming nations • Need for better communication of economic benefits • Emergence of new competitors 15
Slide 16: Resource Nationalism
Resource Nationalism • World needs minerals and metals • Challenge is to produce responsibly – And enhance local benefits • Innovation and best practice dissemination are essential • New players are not immune to the forces driving better performance 16
Slide 17: Business and Development
Business and Development • Business has key role to play in helping to meet the MDGs • Development aid can only be a partial solution • Investment Climate Facility for Africa – Partnership of African and European Governments, multilaterals and business – $150 million fund to create an enabling envir
Slide 18: Thank you / Questions
ANC aN e Thank you ¢e Questions
Anglo American — Business for Social Responsibility Conference 2007 on 6ix