West Wits Operations. Social and Labour Plan Closure Report. Date of Submission: 31 May 2016 SOUTH AFRICA REGION

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1 - West Wits Operations Social and Labour Plan Closure Report SOUTH AFRICA REGION Date of Submission: 31 May 2016 West Wits Operations Mining Rights: ML10/2006 and ML04/2012 (Deed of Amendment) (DMR Reference Nr: GP30/5/1/2/2(01) MR) ( West Wits Operation: Mponeng, TauTona and Savuka mines ) ML 30/2006 and ML15/2011 (Deed of Amendment) (DMR Reference Nr: GP30/5/1/2/2(11) MR) ( Block 1C11 ) ML169/2012 (DMR Reference Nr: GP30/5/1/2/2/248 MRC) (for sand) in respect of the Farm Doornfontein 118 IQ (Remaining Extent 12 and Remaining Extent 13), also known as Magnum Farm AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 1 of 182

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3 CONTENTS SLP Glossary of Terms and Acronyms / Abbreviations 4 Page No Context and Background, Acknowledgements and Executive Summary 7 SECTION 1: Preamble/Ownership 11 SECTION 2: Human Resource Development Programme/ Employment Equity 22 SECTION 3: Community Development/Housing and Living Conditions 56 SECTION 4: Procurement/Enterprise Development 82 SECTION 5: Measures To Ameliorate The Impact of Downscaling And Retrenchment 89 SECTION 6: Financial Provision 91 SECTION 7: Reporting (Monitoring and Evaluation) 94 SECTION 8: Sustainable Growth and Development 95 SECTION 9: Beneficiation 98 Annexure Breakdown of Employees Annexure 1.2 Map of Operations ANNEXURES Annexure 2.1 Form Q Annexure 2.2 Form R Annexure 2.3 Form S Annexure 3 Form T Annexure 4 Project profile booklet 99 AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 3 of 182

4 Social and Labour Plan Glossary Of Terms And Acronyms / Abbreviations Abbreviation ABET AGA AGAH AIDS AMCU ATR BEE BO BWO DMR DoL EAP EDP EE ENA FET FLC GETCA HDSA HIV HRD IDP IMDP LED m Masakhisane MDP MC / Mining Charter or the Charter MMP Full Word Adult Basic Education and Training AngloGold Ashanti AngloGold Ashanti Health Acquired Immune Deficiency Syndrome Association of Mineworkers and Construction Union Annual Training Report Black Economic Empowerment Black Owned Black Women Owned Department of Mineral Resources Department of Labour Economically Active Population Executive Development Programme Employment Equity Enrolled Nursing Auxiliary Further Education & Training Foundational Learning Competence General Education and Training Certificate for adults Historically disadvantaged South Africans Human Immunodeficiency virus Human Resources Development Integrated Development Plan Intermediate Management Development Programme Local Economic Development Million AGA financing and enterprise development vehicle whose main objective is to fund and support the creation and development of commercially viable enterprises in the host and labour sending areas. Management Development Programme Broad-Based Socio-Economic Empowerment Charter for the South African mining industry Managerial Mastery Programme AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 4 of 182

5 Social and Labour Plan Glossary Of Terms And Acronyms / Abbreviations Abbreviation MoR Full Word Manager-once-Removed MPRDA Mineral Petroleum Resources Development Act (Act No. 28 of 2002), as amended from time to time, which came into effect on the 11 May 2004 MPRDA Regulations Mineral Petroleum Resources Development Regulations as Gazetted by the President on 23 April 2004 MQA MWS NGO NPAT NPO NQF NUM NWP Rand (R) RPL SA SANC SAR SARS SARTSC SDC SLP SMME s Solidarity SoR SP Teba UASA VR Mines Qualifications Authority AGA entered into an agreement with First Uranium Limited, in terms of which it acquired ownership over First Uranium South Africa which holds 100% of Mine Waste Solutions (Pty) Ltd, which in turn holds 100% of Chemwes (Pty) Ltd (collectively, more commonly known as the Mine Waste Solutions Operations (MWS) ). Non-Government Organisation Net Profit After Tax Non-Profit Organisation National Qualifications Framework National Union of Mineworkers (South Africa) North West Province South African Rand Recognition of Prior Learning South Africa South African Nursing Council South Africa Region South Africa Regional Services South Africa Region Transformation Steering Committee Skills Development Committee Social and Labour Plan Small, Medium and Micro Enterprises Solidarity Trade Union Subordinate-once-Removed Systems for People The Employment Bureau of Africa. An institution that has historically recruited labour for the Mining Industry but which now also fulfils a broader social role in addition to its recruitment function United Association of South Africa Vaal River Operations AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 5 of 182

6 Social and Labour Plan Glossary Of Terms And Acronyms / Abbreviations Abbreviation WSP /ATR Full Word Workplace Skills Plan / Annual Training Report West Wits Operations AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 6 of 182

7 A. CONTEXT AND BACKGROUND This Closure Report serves as an account of the West Wits Operations performance against the commitments as contained in the approved SLP and Section 102/Regulation 44 application, as was directed by the DMR in their letter dated 29 March The company submitted its West Wits () Operations SLP on the 27th of August The delay in the submission was due to the fact that during 2010, the Mining Charter 2004 was in the process of being reviewed by the government and relevant stakeholders, and it was envisaged that this process would be concluded during the first half of the year. Unfortunately, this was not the case and the amended Mining Charter was only gazetted in September 2010, a few weeks after the submission of the above-stated SLP. On 7 July 2011, the company received a letter from the Gauteng Province DMR Regional Manager with respect to its conversion application for its old mining rights known as Magnum Farm directing it to review some of the provisions of the above stated SLP. This precipitated a process of consultations with the Gauteng (GP) DMR, unions and municipalities of Merafong and OR Tambo (Labour Sending Area). The abovementioned consultations resulted in the company substantially increasing its financial provisions, taking into account the DMR s directive and recommendations, in particular the recommendation that its Magnum Farm had to form part of the SLP. This resulted in a revised SLP being submitted to the DMR on 19 October Following the above mentioned submission of the SLP to the DMR, the company had further engagements with the DMR, including workshops attended by the Regional Manager and her SLP unit staff and Director: Mineral Regulations from the DMR Head Office, to give further guidance in the implementation of the SLP.. These engagements and workshops, held during the first quarter of 2012, resulted in the parties reaching the understanding that issues raised by the DMR subsequent to the submission of the abovementioned SLP, would be dealt with within Implementation Plan due for submission together with the 2011 SLP Report. On the 16th of October 2012 the d Revised SLP was approved by DMR GP, and registered at Mining Titles on 6 December 2012 resulting in the granting and execution of the Magnum Farm Mining Right. Although the above stated process leading to the approval of the SLP on 16 October 2012 by the DMR led to the delay in the execution of the company s LED projects, the company nevertheless had, through its Social and Institutional Fund and its Enterprise Development Fund, continued to discharge its social responsibility by continuing to support, financially and otherwise, the NGOs and SMMEs in Merafong Municipality and Labour Sending Areas in particular, the OR Tambo District Municipality. As reported in 2011, the company had already put in place structures, plans, processes and mechanisms that would enable it to deliver all its committed projects from 2010 beginning 2013 once approval was given to it by the DMR. During the second quarter of 2013, the company held a Mandating and Implementation Committee meetings with the Merafong and OR Tambo Municipalities to sign off on the SLP Projects Implementation Schedules. The Company also presented its SLP projects to the West Rand District Municipality Mining Forum. A Future Forum meeting with all recognised unions was also held on the 21 June 2013 to present to them the Implementation Plan of the SLP projects and programs. Since its submissions of the SLP the company has reported its progress with respect to the implementation of the SLP to the DMR on an annual basis and was also audited by the DMR on a regular basis. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 7 of 182

8 B. ACKNOWLEDGEMENTS The implementation and progress of the SLP for the West Wits Operations would not have been possible without the support and collaboration with our key stakeholders, who all played a role in the development of our Socio-economic Development frame work and supporting strategies aimed at meeting the objectives of our Social and Labor Plans. Throughout the 5 years of implementing the West Wits Operations SLP, robust engagements and inputs were provided through the various structures put in place for consultation, guidance and implementation purposes. These structures include: City of Merafong Mandating Committee led by the Executive Mayor City of Merafong Implementing Committee led by the MMC for LED OR Tambo District Mandating Committee led by the Executive Mayor OR Tambo District Implementing Committee led by the MMC for LED South African Chamber of Mines and it s various Committee s West Wits Future Forum comprising of all recognised Labour Unions and AGA Management SAR Sustainable Development Management Committee Merafong Community Briefing Forum comprising of NGOs and members of the community Merafong Business Forum comprising of SMMEs OR Tambo Community Briefing Forum comprising of NGOs and members of the community The West Rand District Mining Forum Traditional Leaders of the OR Tambo District A special acknowledgment goes to the: Gauteng Department of Mineral Resources for the guidance it has given to the company in both the development and implementation of the SLP. We also want to extend our appreciation to the AGA Executive Committee and Board for their guidance and unwavering support of the Socio-Economic Development Strategy as was approved by the Board in February Finally I would also like to acknowledge the contributions and efforts by our Sustainable Development Department staff in the development and implementation of both the Socio-economic Development Strategy and SLPs. The above mentioned structures will continue to play a critical role as we chart a way forward to deliver on our commitment in the SLP for the West Wits Operations. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 8 of 182

9 C. EXECUTIVE SUMMARY The following are the salient points in this Closure Report as they relate to the company s performance against the Mining Charter targets and approved SLP commitments: 1. Reporting - The 2010 to2014 annual Social and Labour Plan Reports were submitted to the Gauteng Department of Mineral Resources by the end of March of each year as per the requirements of Section 28(2) (c) of the MPRDA. The company has also submitted the Operations SLP Implementation Plans on an annual basis for this period 2010 to 2014 as per the requirements of the MPRDA Regulations, as well as it s the 2012, 2013 and 2014 Mining Charter Reports. We have also on an annual basis reported to the community through the community briefing structures and community reports. All our SLPs, Mining Charter and Community Reports have been posted on our website: 2. Ownership - AGA has managed to achieve 26.8% of Historically Disadvantaged South African (HDSA) representation on the Ownership element, against the Mining Charter target of 26% HDSA representation by the end of April This comprises 20.8% ascribed to the sale of assets to African Rainbow Minerals & Exploration PTY LTD (ARM), 4.5% allocation to Employee Share Ownership Scheme (ESOPS) and 1.5% to our Black Economic Empowerment Partner, Izingwe Holdings PTY LTD. According to the Mining Charter, mining companies may offset the value of the level of beneficiation achieved by the company against a portion of its HDSA ownership requirements not exceeding 11 percent. AGA owns 42.4% of Rand Refinery situated at Springs, near Johannesburg, which beneficiates gold for all of South Africa s gold mines. 3. Housing and Living Conditions - AGA has achieved 100% compliance target with regards to its hostel conversion programme as outlined in its SLP by converting hostels into both Single Accommodation and Family Units. The company has also reached an agreement with the recognised labour unions with respect to its Home Ownership Scheme which is currently being rolled out. 4. Procurement and Enterprise Development - With respect to Procurement, as at 31 December 2014, AGA exceeded all its Mining Charter targets with 62% HDSA spend on Capital Goods against the Mining Charter target of 40%, 70% against the Mining Charter target of 70% for Services and 69% on Consumable Goods against the Mining Charter target of 50%. With respect to Enterprise Development, we have reached an agreement with the Jobs Fund and signed off on the Grant Agreement to set up the Enterprise Development Centres in Merafong, Matlosana and OR Tambo District Municipality with the main objective of supporting and incubating the Small, Medium and Micro Enterprises (SMMEs) in these areas, which will stimulate economic activity in these areas and serve as additional sources of employment creation in the above mentioned localities. 5. Employment Equity: By the end of 2014, the Company had exceeded the 40% HDSA Mining Charter targets at Board (56%), Top Management (43%), Senior Management (40%), Middle Management (54%) and Junior Management (61%) and Core Skills (54%) levels. In 2014 the Voluntary Severance Package process was AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 9 of 182

10 initiated and a restructuring process at management level as an operational requirement. However, the company took cognisance of the transformation commitments during this process, and progressed positively in meeting the Mining Charter targets. 6. Human Resources Development (HRD) The Mining Charter target of 5% of Payroll Spend on HRD by end of 2014 was exceeded, with 6.17% of Payroll Spend having been achieved by the end of Mine Community Development - All the Local Economic Development projects as contained in the approved SLP and Section 102/Regulation 44 Application, save for the Income Generating ones such as the Agricultural and Enterprise Development Centre, have been completed with some having been officially launched by the Minister of Mineral Resources and/or DMR officials. The Income Generating projects such as the Agricultural and Enterprise Development Centre will be handed over to the beneficiaries and exited by the company by end of July 2018, latest. 8. Sustainable Development and Growth -With respect to Environment Management the company revised and resubmitted its Environmental Management Plans (EMP) during the fourth quarter of 2011 following the DMR comments on the initial submissions made in The DMR approved the revised West Wits EMP in 2012 with assessments will be conducted on a two-yearly basis from the date of EMP. Formal environmental performance assessments were conducted & submitted to the DMR on an annual basis. With respect to Health and Safety commitments, the company complied with the commitments in the Mining Industry Tri-Partite Action Plan on Health and Safety. Finally, we also complied with the sampling requirements of the Mining Charter which is done internally. 9. Beneficiation- AngloGold Ashanti owns 42.4% of the Rand Refinery which beneficiates gold for all gold mining companies in SA and certain of the mining companies in the African continent. Thus should there be any shortfall for any reason in its BEE Ownership structure, the company will be able to offset such shortfall to the extent approved by the DMR which currently stands at maximum of 11%. 10. Financial Provision: The MPRDA Regulation 46 (e) provides that the contents of the SLP must make financial provision for the implementation of the HRD programmes, Local Economic Development (LED) projects and for the processes to manage Downscaling and Retrenchment. All these have been fully complied with as contained in the approved SLP. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 10 of 182

11 SECTION 1: PREAMBLE In this section we address REGULATION 46 (a) of the Mineral Petroleum Resources Development Act (Act 28 of 2002) (MPRDA) which provides that the contents of a Social and Labour plan must include, inter alia, a preamble which provides the background information of the mine in question. The following is the background of AngloGold Ashanti (AGA) South Africa Region (SAR). Background AngloGold Ashanti one of the world s foremost gold exploration, mining and marketing companies, has 17 operations in 9 countries and 2 new mines, Tropicana in Australia and Kibali in the Democratic Republic of Congo began production in late In South Africa, AngloGold Ashanti has five deep-level mines which are divided into two regions, Vaal River and West Wits and three surface operations. AGA is an autonomous entity from Anglo American following its unbundling of the Gold assets in 1997 and finally in Anglo American holds no share in AGA. In terms of its Location, the West Wits Operations are situated approximately 75 Km (Kilometres) west of Johannesburg within the Gauteng Province. The site is approximately 7 Km south of Carletonville. Other neighbouring towns are Fochville and Potchefstroom, which are situated 12 Km and 50 Km respectively to the south AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 11 of 182

12 and west of the mine. The land occupied by the West Wits Operations straddle the boundary between Gauteng and North West Provinces which can be seen in the map above and a more detailed map is contained in Annexure 1.2. The map below also reflects the company s major labour sending area. The following is our West Wits Operations address and contact details: West Wits Operations Name of the company/applicant: Name of mine or production operations: Physical address of the mining operations: SAR Operations offices physical address: Postal address AngloGold Ashanti Limited Mponeng, TauTona and Savuka mines/production operations, Block 1C11 and Magnum Farm North-Western side of N12 and R501 (intersection near Carletonville) 26 Jacaranda Drive, South Africa Regional Offices, Western Deep Village, Western Levels, Carletonville, 2501 PO Box 8044, Western Levels, Carletonville,2501 Telephone number Fax number Location of mine or Production Operation: Merafong Local Municipality Commodity: Financial year: Reporting Year: GP30/5/1/2/2(01)MR GP30/5/1/2/2(11)MR GP30/5/1/2/2(248)MR 01 January to 31 December Annually Gold, silver, nickel, uranium Gold, silver, nickel, uranium Sand Name of Contact Person at Regional Office: SM Moloko (Senior Vice President: Sustainability) Telephone No: SMoloko@anglogoldashanti.com LJ Nkadimeng (Governance Manager) Telephone No: JNkadimeng@anglogoldashanti.com Mighty Moloko, Sheena M Pillay, Lebogang Jessica Nkadimeng and Liz Lovick AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 12 of 182

13 AGA's approach to socio-economic development is guided by its vision, mission, business objectives and values. AGA s Vision AGA s vision is to be the leading mining company and is underpinned by the following mission, business objectives and values: AGA s Mission To create value for our shareholders, our employees and our business and social partners through safely and responsibly exploring, mining and marketing our products. Our primary focus is gold, but we will pursue value creating opportunities in other minerals where we can leverage our existing assets, skills and experience to enhance the delivery of value. AGA s Business Objectives Our five key business objectives Supporting our core strategy Focus on people, safety and sustainability: our business must operate according to our values if it is to remain sustainable in the long term. Optimise overhead, costs and capital expenditure: all spending decisions must be checked and double checked to ensure they are necessary to fulfil our core business objective. Improve portfolio quality: we have a portfolio of assets that must be actively managed as we strive for a competitive valuation as a business. Ensure financial flexibility: the balance sheet is the foundation of our company and we must ensure it always remains able to meet our core funding needs. Maintain long-term optionality: while we are focused on ensuring the most efficient dayto-day operation of our business we must keep an eye on creating a competitive pipeline of long-term opportunities AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 13 of 182

14 AGA s Values AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 14 of 182

15 1.2 Breakdown of Employees The breakdown of employees for the period 2010 to 2014 has been reported to the DMR and are contained in our annual SLP Reports for this period. As at the end of 2014 AGA South Africa Region Operations had a total workforce of employees (including approximately contractors), of which are at the Vaal River operations and at the West Wits Operations. The detailed breakdown of the origins of the West Wits Operations employees is as contained in Annexure 1.1 (Kindly note that the number of employees as reflected in Annexure 1.1 differs from that contained in the Form Q, as the information is sourced at different times from the system). The following is a summary of the breakdown as contained in Annexure 1.1: BREAKDOWN OF EMPLOYEES (including Mine + Contractor Type 1, 2 and 3): West Wits Operations as at 31 December 2014 Country of origin Province West Wits NORTH WEST EASTERN CAPE FREE STATE 751 GAUTENG SOUTH AFRICA KWAZULU NATAL 762 LIMPOPO 433 MPUMALANGA 225 NORTHERN CAPE 84 WESTERN CAPE 8 SUB AUSTRALIA 2 SWAZILAND 541 ZIMBABWE 5 BOTSWANA 50 DEMOCRATIC REP OF CONGO 1 LESOTHO MOZAMBIQUE SUB (Note: these figures include Contractors) AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 15 of 182

16 1.4 Scorecard West Wits Operations The following table indicates West Wits Operations progress from 2010 to 2014 reporting period as per the Scorecard for the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry: Element Description Measure 2014 MC Compliance Targets 1 Reporting Has the company reported the level of compliance with the charter for the calendar year 2 Ownership Minimum target for effective HDSA ownership Documentary proof of receipt from the department Meaningful economic participation Progress Achieved By 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual End March 100% 100% 100% 100% 100% 26% by % 26,8% 26,8% 26.8% 26.8% Full shareholder rights 26% by % 26,8% 26,8% 26.8% 26.8% 3 Housing and living conditions 4 Procurement & Enterprise Development Conversion and upgrading of hostels to attain the occupancy rate of one person per room. Conversion and upgrading of hostels into family units Home Ownership Percentage reduction of occupancy rate towards 2014 target. Percentage conversion of hostels into family units against units available for conversion Implement initiatives to facilitate home ownership e.g. preference surveys, advice on purchasing homes, training on benefits of home ownership Occupancy rate of one person per room Family units established Facilitate home ownership for all mine employees, with organised labour 29% 46% 64% 92% 100% 40%* 70%* 70% 100% 100% The company has signed a Memorandum of Understanding with all the recognised labour unions in November 2014 outlining the Home Ownership Scheme framework. Procurement spent from BEE entity Capital goods 40% 39% 39% 48% 43% 62% Multi-national suppliers contribution to the social fund (New requirement of revised charter) Services 70% 29% 39% 38% 51% 70% Consumable goods 50% 40% 52% 56% 57% 69% Annual spend on procurement from multinational suppliers 0.5% of procurement value Awaiting the DMR s guidance Awaiting the DMR s guidance Awaiting the DMR s guidance Awaiting the DMR s guidance Awaiting the DMR s guidance AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 16 of 182

17 Element Description Measure 2014 MC Compliance Targets Progress Achieved By 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 5 Employment Equity 6 Human Resource Development Diversification of the workplace to reflect the country's demographics to attain competitiveness. Development of requisite skills, incl. support for South African based research and development initiatives intended to develop solutions in exploration, mining, processing, technology efficiency (energy and water use in mining), beneficiation, as well as environmental conservation and rehabilitation Board 40% 56% 42% 45% 56% Top Management (F 43% 40% 25% ** 40% ** 40% 37.5% Band) Senior Management (E 40.0% 40% % 32%¹ 32% 34.7% Band) Middle Management (D 54% 40% 35% 53%² 53% 50.6% Band) Junior Management (C 61% 40% 48.5% 59% ³ 59% 59.9% Band) Core Skills 40% 49.0% ** 53% 52.7% 53.0% 54% HRD expenditure as percentage of total annual payroll (excl. mandatory skills development levy) 2010 = 3% 2011 = 3.5% 2012 = 4% 2013 = 4.5% 2014 = 5% 5.1% 4.6% 5.3% 6.3% 6.17% 7 Mine community development Conduct ethnographic community consultative and collaborative processes to delineate community needs analysis Implement approved community projects in line with IDP's of local and major labour sending municipalities. Up-to-date project implementatio n. R **** R (Community Development) plus Community HRD R , which amounts to 1.1% NPAT 2012 total = R This amounts to 1,17% of NPAT All LED SLP projects on track. Community Development Expenditure= R43, 130, This amounts to 2.82% of NPAT R which amounts to 2.82% NPAT (This excludes money to be spent on income generating projects post 2014 and LED projects completed in 2015.) AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 17 of 182

18 Element Description Measure 2014 MC Compliance Targets Progress Achieved By 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 8 Sustainable Development Improvement of the industry s environmental management Improvement of the industry's mine health and safety performance Utilisation of South African based research facilities for analysis of samples across the mining value chain 9 Beneficiation Contribution of a mining company towards beneficiation (this measure is effective from 2012) Implementation of the approved EMPs Implementation of the tripartite action plan on Health & Safety Percentage of samples in South African facilities Additional production volume contributory to local value addition beyond the base-line 100% The DMR approved the revised West Wits Environmental Management Programme (EMP) during the 2nd Quarter Formal environmental performance assessments will be conducted on a two-yearly basis from the date of EMP approval. EMPs will be reviewed and updated by mid % N/A 100% 100% 95.4%.The variance between the 2012 and 2013 reported figure is due to change in definition in Chamber Of Mines Guidance. 100% Clarified (100%. All AGA samples done in RSA.) Section 26 of the MPRDA (percentage above baseline ) Clarified. (100%. All AGA samples done in RSA.) Clarified. (100%. All AGA samples done in RSA.) 100%. All AGA samples done in RSA. Annual H&S targets 95.8%. 100%. All AGA samples are done in RSA. AngloGold Ashanti owns 42.4% of the Rand Refinery which beneficiates gold for all gold mining companies in SA and certain of the mining companies in the African continent. Thus should there be any shortfall for any reason in its BEE Ownership structure, the company will be able to offset such shortfall to the extent approved by the DMR which currently stands at maximum of 11%. Legend * Family Units: No specific targets set by the Mining Charter. We have measured ourselves on actual units converted against total units available for conversion ** Clarity regarding definition of core skills is required. AGA describes Core and Critical Skills as all employees within Mining, Engineering, MRM and Metallurgy disciplines. *** The 4.63% is the figure which includes white males. It should be noted that when we exclude WM, the HDSA contribution is at 5.84% **** This figure is for the entire AGA-SAR operations including Corporate Office and excluded Community HRD programmes. 40% HDSA representation at Senior Management level. If we take into account the EAP of White females(6%),hdsa representation remains at 40% due to the fact that total White females 1 takes up only 5.7% of the total category population. 2 54% HDSA representation at Middle management level. If we take into account the EAP of White females(6%),hdsa representation is 44% 3 61% HDSA representation at this level If we take into account the EAP of White females(6%),hdsa representation is 58% Note Due to the organisation structures in the SAR, some numbers are reported regionally e.g. Ownership AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 18 of 182

19 1.4 Ownership In this section we address the Mining Charter requirements as detailed below. Mining Charter Requirement: In terms of Ownership element of the Amended BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH MINING and MINERALS INDUSTRY Effective ownership is a requisite instrument to effect meaningful integration of HDSA into the mainstream economy. In order to achieve a substantial change in racial and gender disparities prevalent in ownership of mining assets, and thus pave the way for meaningful participation of HDSA for attainment of sustainable growth of the mining industry, stakeholders commit to: Achieve a minimum target of 26 percent ownership to enable meaningful economic participation of HDSA by 2014; The only off setting permissible under the ownership element is against the value of beneficiation, as provided for by Section 26 of the MPRDA, as elaborated in the mineral beneficiation strategy. The continuing consequences of all previous deals would be included in calculating such credits/offsets in terms of market share as measured by attributable units of production. The Mining Charter scorecard requirements are indicated below along with the AGA compliance to date. SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER FOR THE SOUTH MINING INDUSTRY - AGA : WEST WITS OPERATIONS ELEMENT DESCRIPTION MEASURE 2 Ownership Minimum target for effective HDSA ownership Meaningful economic participation COMPLIANCE TARGET BY 2014 PROGRESS ACHIEVED 2010 Actual 2011 Actual 2012 Q1 31 Mar Q2 30 Jun Q3 30 Sep Q4 31 Dec % in % 26.8% 26.8% 26.8% 26.8% 26.8% 26.8% 26.8% Full shareholder rights 26% in % 26.8% 26.8% 26.8% 26.8% 26.8% 26.8% 26.8% The 2004 Mining Charter sets an Ownership Target of 15% HDSA Ownership by 2010 and 26% HDSA Ownership by In 2005/2006 the DMR granted the company its Mining Rights after having satisfied the 26% HDSA requirements on Ownership and other requirements as provided for in the MPRDA. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 19 of 182

20 Through a combination of ownership transactions with ARM Gold, Bokamoso ESOP and Izingwe Holdings the company has achieved 26.8% HDSA Ownership as at end of Ownership & Joint Ventures and the Mining Charter: The Mining Charter Scorecard, designed to measure compliance to the Ownership element of the Mining Charter asks the following question: Has the mining company achieved HDSA participation in terms of Ownership for equity or attributable units of production of 15% in HDSA hands within 5 years and 26% in 10 years? AGA South Africa Region s Black Economic Empowerment Ownership Status: AngloGold Ashanti s HDSA Ownership contribution is measured in respect of transactions with three BEE entities. Sale of assets to ARMgold Limited (ARM): Jan 1998 Sale to ARM of Vaal Reefs No 1-7 shafts July 1998 Sale to ARM of Freegold s Western Holdings shafts 1, 2, 3, 4, 6, 7 and Welkom gold plant Jan 2002 Sale of Free State assets (Bambanani, Joel, Matjhabeng, Tshepong, Jeanette shares, plus surface infrastructure) to ARM/Harmony joint venture. By direction of the then DME/DMR, the credits AGA is entitled to claim was calculated by the units of production provision of the Mining Charter based on AGA and attributable ARMgold production for the 12 months ended March 2004 the last production data available at the time AGA applied for the conversion of its mining rights. ARMgold s attributable production in respect of former AGA assets for that period was 848,602ozs. AGA production at its South African assets in the same 12 month period was 3,232,000ozs. AngloGold Ashanti s overall HDSA participation in respect of ARMgold is therefore 20.8% (848,602ozs as a percentage of 3,232, ,602ozs). Employee Share Ownership Plan (ESOP) and Izingwe Holdings: When AngloGold Ashanti was awarded its new order mining rights in 2005, one condition was that it fulfills its undertaking to the DMR that it would introduce an ESOP and carry out a further BEE transaction to complete its ownership obligations in terms of the Mining Charter. That obligation was fulfilled after a period of consultation between AGA and, respectively, the unions representing the approximately 30,000 eligible members of the company s SA workforce at that time and the leadership of Izingwe Holdings, a BEE company chaired by Sipho Pityana. The transactions were announced in October 2006, involving the transfer of (25% of them free shares and the remainder E shares operating in a manner similar to share options) to an employee share trust, the Bokamoso ESOP Trust, and E shares to Izingwe. The transactions were vendor-financed, and there is no possibility of any downside for BEE entities. The ESOP transaction comprised a transfer of 4, 5% ownership in terms of the charter, and the Izingwe Holdings (Pty) Ltd transaction 1.5% this taking AGA s total HDSA ownership credit to 26, 8%. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 20 of 182

21 Between the December 2006 launch date and December 2014, a total of R flowed to members of the Bokamoso Employee Ownership Share Plan. Of this, R was paid in dividends, R as a consequence of the vesting of free and loan shares, and R due to the proceeds of a rights issue in In the same period our BEE partner Izingwe Holdings received a total of R in dividend flows and R as a consequence of the rights issue. In addition, Izingwe received AGA shares as a consequence of the November 2011 vesting date. It is unknown at what price Izingwe sold the shares through its own brokerage house. The share price at which the vesting took place was R Izingwe received R as a consequence of the November 2012, November 2013 and November 2014 vestings. Due to international market conditions, the prevailing share price was underwater at the dates of the vesting of the first two tranches of E shares in November 2009 and In response to representations from the ESOP trustees (including union representatives) and Izingwe, AGA management took the view that, while not required in any way by regulation, the situation was compromising the spirit of the empowerment transactions. Management entered into a new phase of consultations with the unions and Izingwe. This led to a restructuring of the transactions in a manner that builds in a guarantee of value of R40 per share in respect of vesting E shares, and the reinstatement of lapsed E shares. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 21 of 182

22 SECTION 2: HUMAN RESOURCES DEVELOPMENT Mining Charter Requirement: In terms of Human Resource Development the amended 2010 BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH MINING and MINERALS INDUSTRY states as follows: The mining industry is knowledge based and thus hinges on human resource development, constituting an integral part of social transformation at workplace and sustainable growth. To achieve this objective, the mining industry must: Invest a percentage of annual payroll (as per relevant legislation) in essential skills development activities reflective of the demographics, but excluding the mandatory skills levy, including support for South African based research and development initiatives intended to develop solutions in exploration, mining, processing, technology efficiency (energy and water use in mining), beneficiation as well as environmental conservation and rehabilitation; as follows: Target for 2010 = 3%; Target for 2011 = 3.5%; Target for 2012 = 4%; Target for 2013 = 4.5%; Target for 2014 = 5% AngloGold Ashanti s (AGA) Response to the above was as follows: The Mining Charter scorecard requirements are indicated below along with the AGA West Wits Operations achievements from 2010 to SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT FOR THE SOUTH MINING INDUSTRY - WEST WITS OPERATIONS No. ELEMENT DESCRIPTION MEASURE 6 Human Resource Development Development of requisite skills, incl. support for South African based research and development initiatives intended to develop solutions in exploration, mining, processing, technology efficiency (energy and water use in mining), beneficiation as well as environmental conservation and rehabilitation. HRD expenditure as percentage of total annual payroll (excl. mandatory skills development levy). COMPLIANCE TARGET BY 2014 MC Achieved MC Achieved PROGRESS ACHIEVED BY MC Achieved MC Achieved MC Achieved 5.00% 3.00% 5.10% 3.50% 4.63% 4.00% 5.25% 4.50% 6.30% 5.00% 6.17% AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 22 of 182

23 The objectives and targets of the company s HRD programmes and projects have been met as set out in the approved SLP. Over the five year period from , the company has spent R against the planned R on HRD, which is excess by an amount of R , thus consistently exceeding the percentage of Payroll Spend as set by the Mining Charter, and achieving a 6.17% by end of 2014 against the Mining Charter target of 5%. HUMAN RESOURCE DEVELOPMENT PROGRAMME : FINANCIAL PROVISION WEST WITS Year Social and Labour Plan Actual HRD Spend Variance Mining Charter Requirement HRD Financial Provision Actual % Actual HRD Spend % Variance Rand Value Variance 2010 (Actual) 3% R 132,000, % R 133,279, % R 1,279, % R 118,000, % R 126,486, % R 8,486, % R 142,502, % R 165,217, % R 22,715, % R 155,502, % R 193,817, % R 38,315, % R 169,502, % R 185,114, % R 15,611,340 R 717,508,106 R 803,915,516 R 86,407,410 The requirements of the MPRDA REGULATION 46 (b) have also been fully complied with by the company as outlined in Forms Q, R and S as contained in the 2010 to 2014 annual reports. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 23 of 182

24 A. EMPLOYEES (18.1) HUMAN RESOURCE DEVELOPMENT PROGRAMME WORKPLACE SKILLS PLAN (WSP) AND ANNUAL TRAINING REPORT (ATR) In compliance with the Skills Development Act, the company has submitted on an annual basis the Workplace Skills Plan (WSP) and Annual Training Report (ATR), which were signed off annually in consultation with Organised Labour. This was also submitted to the Mine Qualification Authority (MQA) before 30 June each year. The registration numbers of the company with the relevant SETAs are L and L for MQA and HWSETA respectively. The following constitutes a condensed report for the period 2010 to 2014: ADULT BASIC EDUCATION AND TRAINING (ABET) FOR AGA EMPLOYEES (18.1) ABET is instrumental towards transformation & development within the company, as well as within the employees lives. ABET is aligned to the company s Form Q requirements. The aim is to address literacy & numeracy levels, respond to the labour market & provide individuals with knowledge and skills which ultimately adds value to their lives and to the company as well. Indicated below is the company s achievements in terms of ABET training. The table below shows that the company has achieved its targets as per the approved SLP and Section 102/Regulation 44 Application. Table 2.2.1: ABET ( Programme)- Employees: Year FOREIGNER MALE COLOURED INDIAN WHITE FOREIGNER FEMALE COLOURED INDIAN WHITE OVERALL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 24 of 182

25 ACTUAL * To offset the shortfall of the 18.1 ABET plan, more 18.2 (Community) ABET learners were enrolled (333 more that the planned figure) as per the approved Section 102/Regulation44 Application. PORTABLE SKILLS FOR EMPLOYEES (18.1) The objective of this programme is to provide portable skills training to employees who show an interest in obtaining such training and with a special emphasis on employees who are incapacitated or retrenched in order to remain economically active, employable or self-sustaining within their communities. Employees were entitled to a once off course at no cost to the participant. The table below shows that portable skills training was provided to 288 employees which exceeded the plan of 163. Portable Skills Training: Engineering - Employees: Year FOREIGNER MALE COLOURED INDIAN WHITE FOREIGNER FEMALE COLOURED INDIAN WHITE OVERALL HDSA PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 25 of 182

26 TRAINEE PROGRAMMES AND LEARNERSHIPS FOR EMPLOYEES (18.1) Learnership and Trainee Programmes are aimed to create, develop and support a pool of suitably qualified and competent first line and middle management employees to address the company s skills requirements, as well as potential pool for Employment Equity imperatives. Such programmes include, but are not limited to, Management Trainee and Learner Official Programmes, and Engineering and Mining Learnerships. Trainee Programmes: Management Trainees (Employees 18.1) The Management Trainee (MT) Programme is approximately three years in duration, over four phases, which gives graduates and diplomats the skills needed for middle management positions within the company. The following table constitute the Trainee Programmes: Management Trainees achieved. A total of 179 against the target 149 MTs were trained on this programme. Management Trainees ( Programme)- Employees: Year 2010 FOREIGNER MALE COLOURED INDIAN WHITE FOREIGNER FEMALE COLOURED INDIAN WHITE OVERALL PLAN ACTUAL HDSA PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 26 of 182

27 Trainee Programmes: Learner Officials (Employees 18.1): The company develop skills in line with the national skills shortage. Key national skills development priorities include developing supervisory skills. The Learner Official Programmes are internal company programmes. The Learner Official (LO) Programme of approximately three years in duration which gives non-graduates and nondiplomats the skills needed for supervisory positions such as Shift Bosses. Learner Officials are appointed in critical skill areas once they have completed the programme. The following table constitutes the achievements for the Trainee Programmes: Learner Officials, which yielded 102 against a plan of 96 individuals who were on this programme. Learner Officials ( Programme)- Employees: Year FOREIGNER MALE COLOURED INDIAN WHITE FOREIGNER FEMALE COLOURED INDIAN WHITE OVERALL HDSA PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 27 of 182

28 AGA LEARNERSHIP PROGRAMME FOR EMPLOYEES (18.1) Learnerships in Mining (Employees) Learnerships in Mining Level 2 (Team Leader) AngloGold Ashanti is committed to developing skills in line with the national SA skills shortage. Key national skills development priorities include developing high-level Mining skills. The company has also implemented measures that equip and enhance the competencies of its talent pool. In this regard, the company undertook various interventions for Group 4 to 8 Employees. Approximately one and a half years programme, aligned with national programmes registered with the MQA, allowed the learners to have gained the skills needed to become competent in chosen fields. The following table constitutes the Learnerships Programmes as achieved with a total of 632 against a plan of 309 people being trained on this programme. Learnership ( Programme) - Employees: Year FOREIGNER MALE COLOURED INDIAN WHITE FOREIGNER FEMALE COLOURED INDIAN WHITE OVERALL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 28 of 182

29 STUDY ASSISTANCE AND BURSARIES FOR EMPLOYEES (18.1) Bursaries: Bursaries were awarded to employees for Full-time tertiary studies in specific fields of study critical to AGA. These include the technical fields where there was a shortage as per the Sector Skills Shortage Plan. Employees who were sponsored for Full-time studies were referred to as In-Service Bursars (ISBs). The company provided generous benefits to In Service Bursars who received 80% of their salary as well as accommodation and book allowances while studying full time. The following table constitutes the Employee Bursaries, which shows that 15 employees benefited from this initiative. Bursaries ( Programme) - Employees: Year FOREIGNER MALE FEMALE OVERALL COLOURED INDIAN WHITE FOREIGNER COLOURED INDIAN WHITE PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL As outlined in the approved Section 102/Regulation 44, the shortfall of 4 against 19 of In Service Bursars was due to the fact that no nominations were received for further full time studies for 2014 due to the workforce right sizing exercise at Management levels conducted during the 3rd & 4th quarters of To off-set the above-mentioned shortfall budget was moved to increase other learner programmes. Study Assistance Programme: In addition to the formal HRD programmes mentioned above, AGA also offered employees the opportunity to grow and develop their knowledge and skills through study assistance. Employees were encouraged to further their studies in areas that will enhance the achievement of company objectives as well as individual development. However, employees who wished to further their studies in any field were not rejected. Employees who successfully completed qualifications that were in line with company objectives and their individual development were reimbursed 100% of their course fees upon completion, while employees who successfully completed qualifications unrelated to company objectives and individual development were reimbursed 50% of their course fees. HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 29 of 182

30 The following table reflects the Study Assistance actuals, which shows that 1012 employees benefited from this initiative. Study Assistance - Employees: Year FOREIGNER MALE FEMALE OVERALL COLOURED INDIAN WHITE FOREIGNER COLOURED INDIAN WHITE 2011 ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL HDSA CAREER PROGRESSION PLAN FOR EMPLOYEES (18.1) The System for People and Managerial Accountabilities In terms of Career Progression of Employees, AGA has investigated and conducted much research on the System for People (SP) model to address the career progression for individuals within the company. This process commenced during 2010 with inputs and contributions from high level individuals and is aligned to the company s business plan and strategy. The SP model is based on Elliot Jaques model which is a well-known international model. Since its inception, the company has made great stride towards the career progression of its employees. The company has also aligned this career progression plan with its Employment Equity Plans for developing HDSAs into higher roles within the company. The System for People model is the basis of AGA s organisational culture of accountability and trust, consistent with the company s values, which establishes the environment necessary for the achievement of business objectives and enables employees to deliver on their full potential. The System for People is dependent on a three-tier managerial structure of Manager-once-Removed (MoR), Manager (M) and Subordinate-once-Removed (SoR), to ensure the ongoing and sustained matching of individuals to roles. The Manager is accountable to manage the performance of Subordinates and to apply managerial leadership practices such as selection, induction, context setting, task assignment, coaching, planning and contribute towards subordinates development plans. Managersonce-Removed must assess an individual s current potential capability, mentor SoRs, determine succession plans and ultimately endeavour to match career aspirations with organisational requirements. The following figure illustrates the three tier managerial structure. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 30 of 182

31 MENTORSHIP PLAN FOR EMPLOYEES (18.1) The MoR is accountable to mentor their SoRs which is per Systems for People s Three Tier Management System. Establishing and maintaining a trusting relationship with each of his/her SoRs in order to maximise the value of the mentoring process for both the SoR and the company is essential. It is crucial that the MoR remains abreast of the evolving career interests and aspirations of the SoR in order to appropriately mentor the SoR, and ensure realistic career plans. MoRs had regular contact sessions with SoRs and sessions were captured in terms of the company s HR Information System. This system has been implemented for all management level employees and ensures that all employees receive mentoring. Further to the mentorship system, all learners who are on a structured development or training programme are allocated a mentor or a coach to guide them in their developmental journey. The system has a built in Mentorship and coaching scheme, which is depicted by a Three-Tier System above in Section 2.8. The relationship is as follows: AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 31 of 182

32 Manager once Removed (MoR) Accountability is the Career development of the Subordinate Once Removed (SoR) Assess the talent pool of employees. To mentor and provide career development for all SoRs. Ensure subordinate managers carry out talent pool development within each of their areas. Ensure fair and equitable treatment of SoRs, including equilibration of managerial processes and practices. Judge managerial leadership effectiveness of immediate subordinates who manage others. Manager Manager s accountability is the work performance of the subordinate known as Subordinate Once Removed (SoR). Their own effectiveness in role relative to their accountabilities. The outputs of their subordinates and coaching for maximum effectiveness. The result or impact of subordinates behaviour. Sustaining a team of capable employees working individually and collaterally to produce outputs over time, i.e. providing effective leadership to the team. Continuous process improvement. Subordinate Once Removed (SoR) Subordinate Once Removed (SoR) is the one who is subjected to the two initiatives that of performance and development. Their own effectiveness in role relative to their accountabilities. The outputs for maximum effectiveness. The following table constitutes the Contact, MoR/SoR & Contract Sessions, which shows that 1638 employees benefited from this initiative. Table 2.9.A: Mentorship Plan for Employees Contact, MoR/SoR & Contract Sessions Year FOREIGNER MALE FEMALE OVERALL COLOURED INDIAN WHITE FOREIGNER COLOURED INDIAN WHITE 2011 ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 32 of 182

33 MANAGEMENT DEVELOPMENT FOR EMPLOYEES (18.1) Managerial/leadership training and development is generally based on the career development plans of the employees as identified through the talent pool and succession planning processes which also links into the Employment Equity imperatives and drivers of AGA. Management training is an essential part of ensuring that the company will run as productively and efficiently as possible now, and into the future with further emphasis on creating a skilled leadership base to sustain the organisation. There are several aspects of management that need to be addressed in order to ensure that Managers will be able to do the best they can in their roles. One of the most important aspects of effective management is how to engage employees to get the best outcomes from the team. Managers need to know the best way to communicate with their subordinates, to involve them in work planning and execution, and to give appropriate feedback on performance. They must know how to properly assign tasks to employees so that team productivity can be maximised. Importantly, effective leaders need to understand how to lead change, optimising processes, creating systems, and generating enthusiastic commitment among subordinates for new ways of working. The company entered into partnerships with academic institutions and service providers in order to tailor education and training programmes to suit AngloGold Ashanti s and individual needs and also to promote transformation within the organisation. The table below indicates that AGA has put through 215 against a plan of 206 of its employees on the Management Development Programme from 2010 to Table 2.8: Management Development ( Programme) - Employees: Year FOREIGNER MALE FEMALE OVERALL COLOURED INDIAN WHITE AFRICA N FOREIGNER COLOURED INDIAN WHITE PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL TOTA L HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 33 of 182

34 B. COMMUNITY (18.2) HUMAN RESOURCE DEVELOPMENT PROGRAMME (CHRDP) The objectives of our CHRDP are outlined below: Contributing to the country s education initiatives and making a difference which supports government initiatives. Ensure development of requisite skills in respect of learnerships, bursaries (of core and critical skills), internships and other training. Contribute towards the upliftment of the HDSAs in line with the objectives of the Empowerment Legislative framework, and the company s value with respect to the promotion of diversity in the workplace. Contribute to upliftment and development of skills in the host and major Labour Sending communities. Contribute to empowerment of local and major labour sending communities through Education training and development initiatives. Demonstrate visible support for our host communities' interests in terms of Education. Contribution to the social development of host communities to promote and improve social contribution. Aid to improving the quality of life for our host communities through education upliftment. Contribute to driving the Millennium Development Goals to achieving universal primary education. To promote employment and advance the social and economic welfare of mine communities. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 34 of 182

35 ADULT BASIC EDUCATION FOR THE COMMUNITY (18.2) ABET is instrumental towards transformation and development within the company and the communities in which AGA operates. The aim is to address literacy and numeracy levels, respond to the labour market and provide individuals with knowledge and skills which ultimately adds value to the individuals lives. Indicated below is the company s achievements in terms of ABET training. The table below shows that the company has assisted 1287 community members on the ABET programme from against a target 954. ABET ( Programme) - Community: Year 2010 FOREIGNER MALE COLOURED INDIAN WHITE FOREIGNER FEMALE COLOURED INDIAN WHITE OVERALL PLAN ACTUAL HDSA PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 35 of 182

36 PORTABLE SKILLS FOR THE COMMUNITY (18.2) The objective for providing portable skills training to the community, which included the unemployed within close proximity of the AGA operations, is to equip community members with a skill that will assist them to become economically active within their community and become self-sustainable. Community members were entitled to a once-off course at no cost to the participant. The individuals completed specific modules and were issued with a certificate of attendance on completion. This was communicated through word of mouth which includes AGA (AngloGold Ashanti) community briefings, Mandating and Implementing committee structures as established with relevant Municipalities, pamphlets, organised labour and other relevant structures. Community members were trained in portable skills such as basic plumbing, basic computer, basic house wiring, basic bricklaying and others. The table below shows that the company had trained 254 people on the portable skills programme from against the plan of 234. Engineering Portable Skills Training for Community: Year 2010 FOREIGNER MALE COLOURED INDIAN WHITE FOREIGNER FEMALE COLOURED INDIAN WHITE OVERALL PLAN ACTUAL HDSA PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 36 of 182

37 MINING SKILLS FOR THE COMMUNITY (18.2) The objective of the Mining skills project was to provide community members the opportunity to educate themselves by obtaining entry level knowledge and skills which would enable them to apply for a position within the mining industry and to become part of the TEBA Ltd database. The table below shows that the company had trained 835 people on the mining skills programme from against a plan of 597. Mining Skills Training for Community: Year FOREIGNER MALE COLOURED INDIAN WHITE FOREIGNER FEMALE COLOURED INDIAN WHITE OVERALL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 37 of 182

38 INTERNSHIPS FOR THE COMMUNITY (18.2) Community Internship Programme The company committed to provide supervised work experience which could lead to future employment opportunities for community members who are in the possession of recognised degrees or diplomas to extend the theoretical knowledge acquired through their studies in a practical job exposure. Internships are awarded on an annual basis. During the time of internship, the intern receives a stipend as set out per budget allocation and approval by the company. Training programmes are overseen by training specialists but are supervised by operational staff. Where appropriate, training programmes are linked to obtaining industry accreditation such as the Rock Breaker qualification or Government Certificate of Competence for Mines and Works. The initiative is marketed within communities through local newspapers and through internal communication channels, as well as the Mandating and Implementing committees established with the relevant Councils. Existing technical subject matter experts within the company provide the necessary on-the-job coaching to interns. The interns are also mentored in the time served at the company. The table below indicates 96 Internships were afforded the opportunity for the period against a plan of 95. Table 2.15: Community Interns (Core and Non-Core Skills): Year FOREIGNER MALE COLOURED INDIAN WHITE FOREIGNER FEMALE COLOURED INDIAN WHITE OVERALL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL *This programme began in 2012 as part of the revised SLP to address the challenges of unemployed graduates in our host and labour sending communities. HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 38 of 182

39 Graduate Development Scheme MQA Learnership / Internship Programme The company continues to work in partnership with the MQA, industry SETA, to provide work-integrated learning for external students. Candidates must comply with the MQA criteria and fields of study are also determined by the MQA. The programme was managed at the discretion of the MQA. Internships ran over a period of two years, as stipulated by the MQA. The table below shows that the company had awarded 145 MQA Learnership / Internships from against a plan of 89. Internship Programmes for Community: Number of MQA Students ( SLP p 59) Year FOREIGNER MALE FEMALE OVERALL COLOURED INDIAN WHITE FOREIGNER COLOURED INDIAN WHITE PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 39 of 182

40 LEARNERSHIPS FOR THE COMMUNITY (18.2) Community Learnerships in Engineering Engineering skills training was provided to community members in our host communities to provide them with the opportunity to obtain formal qualifications, and apply for jobs within the mining sector. The learners acquired skills and knowledge to the level where they have been found capable to perform the work. They gained theoretical knowledge as per curriculum prescribed by the MQA (Mining Qualification Authority). The programmes were marketed through advertisements in newspapers, pamphlets, word of mouth, labour structures, business unit noticeboards, relevant Government departments and relevant Municipalities. The programmes are accredited with the industry SETA, the MQA for specific trades in line with QCTO (Quality Council for Trades and Occupations) requirements. The company offered the following learnerships: Rigger, Ropesman, Boilermaker, Fitter & Tuner, Electrical, Instrument Technician, Winding Engine Driver and Diesel Mechanic. The following table shows that for the SLP period, 20 individuals were trained on this programme against a plan of 19. Engineering Learnership for Community: Year 2010 FOREIGNER MALE COLOURED INDIAN WHITE FOREIGNER FEMALE COLOURED INDIAN WHITE OVERALL PLAN ACTUAL HDSA PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 40 of 182

41 VOCATIONAL BURSARIES FOR THE COMMUNITY (18.2) Vocational bursaries were offered to South Africans and were industry related with consideration being given to the company s Form R and the national EAP in the period. The main focuses on these bursaries were on learners who were engaged in recognised full-time tertiary studies in specific fields which were critical to AGA and the mining industry. The intention of this programme was to create a consistent pipeline of professionals into the company in areas where there was a skills shortage. The candidates were also considered for vac work within the company which gave them exposure in their field of study and choice. The company had award 70 vocational bursaries from against a plan of 80. Vocational Bursaries for Community ( Programme): Year 2010 FOREIGNER MALE COLOURED INDIAN WHITE FOREIGNER FEMALE COLOURED INDIAN WHITE OVERALL PLAN ACTUAL HDSA PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL As outlined in the approved Section 102/Regulation 44, the shortfall in this respect is due to the uncertainty caused by the right sizing exercise in the mining industry which arose out of the negative economic circumstances in the global economy and Gold Mining industry in particular, no nominations were received however the company increased the community bursaries instead. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 41 of 182

42 COMMUNITY HUMAN RESOURCES DEVELOPMENT PROGRAMME (Additional programmes) BURSARIES FOR THE COMMUNITY (18.2) The company provided bursaries to community members in our host and major labour sending areas, who were admitted for full-time recognised degree or diploma studies at approved tertiary institutions. Bursaries were awarded on an annual basis and were renewed conditionally upon reviewing of the candidates exam results, until the qualification was obtained. The initiative was marketed within communities through local newspapers and through internal communication channels, as well as the Mandating and Implementing committees which have been established with the relevant Municipalities. The company awarded 51 bursaries from against a plan of 52 due to insufficient eligible applicants however the subsequent year s recruitment yielded better outcomes with a better base for selection hence the targets were exceeded in Community Bursars (Core and Non-Core Skills): Year FOREIGNER MALE FEMALE OVERALL COLOURED INDIAN WHITE FOREIGNER COLOURED INDIAN WHITE PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL HDSA INVOLVEMENT WITH FET COLLEGES AND NCV PRACTICALS FOR THE COMMUNITY (18.2) FET College Involvement The company assisted the WestCol FET College with the challenges that they experienced to ensure that they function effectively so that they have: Effective Management and Administrative Systems. Lecturers that are well qualified and have workplace experience they can make the link between the theory and practice. Students that have good pass rates and are marketable after completion of their studies. Partnerships and engagement with industry and are able to respond effectively to industry needs. Such partnerships include SETA engagement as well as relationships with various government departments. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 42 of 182

43 Infrastructure geared for training; therefore we will assist with renovations and the establishment of workshops. Learning materials for NCV and NATED courses. We will assist with purchasing these. Teaching aids that are up to standard, again we will assist in this instance. National Certificate Vocational The WestCol Technical College is doing the institutional training of learners in the West Wits area. Students, who completed four (4) years of theoretical training, needed practical on-the-job exposure varying from 6 to 12 months. The company supported the students to obtain the necessary practical exposure. The following table shows the company s achievements in this regard for the period. National Certificate (Vocational) - SIMS: ( SLP p 67) Year FOREIGNER MALE FEMALE OVERALL COLOURED INDIAN WHITE FOREIGNER COLOURED INDIAN WHITE PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL As outlined in the approved Section 102/Regulation 44, ddespite significant efforts e.g. posters, pamphlets including radio briefing to recruit suitably qualified learners from Merafong Local Municipality to promote the NCV programme, appeals made by the at Community Briefings and Future Forum meetings, the company was unable to attract sufficient applications to meet its SLP targets for the 2012 to 2014 in this regard. Also, the local FET College (WestCol FET) has not been able to deliver sufficient NCV learners who are eligible for work-based exposure primarily due to the leaners preference for NATED Courses as opposed to NCV Courses. COMMUNITY TRAINING MINING SKILLS PROJECT FOR THE COMMUNITY (18.2) The purpose of the Mining skills community project was to provide community members in the West Wits area the opportunity to enrich themselves by obtaining knowledge and skills, which they will be able to apply within the mining industry. The community learners were provided the opportunity to obtain Mining and or Development Team knowledge and skills, up to the level where they have been found capable. This implies that they have done all the theory as per unit standard as well as the simulated practical tasks as required by the unit standards. After obtaining capability status their names are placed on a TEBA waiting list for possible engagement. HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 43 of 182

44 The table below shows the achievements for the period. Community Training - Mining Skills Project - SIMS: ( SLP p 68) Year FOREIGNER MALE FEMALE OVERALL COLOURED INDIAN WHITE FOREIGNER COLOURED INDIAN WHITE PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL DEPARTMENT OF LABOUR LEARNERS (TEAM LEADERS) FOR THE COMMUNITY (18.2) The MQA had granted AGA funding for 67 Team Leader learnerships, to be used for community learners. The MQA had allocated R for each learner. The company then partnered with the DoL where they provided us with the required learners from the DoL ESSA data base. The following table shows that for the SLP period, 130 individuals were trained on this programme against a plan of 90. Department of Labour Learners (Team Leaders) - SIMS: ( SLP p 68) Year FOREIGNER MALE FEMALE OVERALL COLOURED INDIAN WHITE FOREIGNER COLOURED INDIAN WHITE PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL HDSA HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 44 of 182

45 YOUTH PORTABLE SKILLS FOR THE COMMUNITY (18.2) Portable engineering skills training was provided to the youth in the community who included those unemployed within close proximity of the AGA operations. The youth as well as members of the community were trained in portable skills such basic welding, basic computer, basic house wiring, basic bricklaying, and basic plumbing. Through this initiative the company prepares the youth as well as members of the community for alternative lively-hood beyond the life of mine. The intervention was marketed in the communities through word of mouth, pamphlets, Municipality Structures and Organs of State. The following table shows that for the SLP period, 310 individuals were trained on this programme against a plan of 180. Table 2.16.H: Youth Portable Skills - SIMS ( SLP p 71) Year FOREIGNER MALE FEMALE OVERALL COLOURED INDIAN WHITE FOREIGNER COLOURED INDIAN WHITE PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL TRAINING FOR ENROLLED NURSING AUXILIARIES AND ENROLLED NURSES FOR THE COMMUNITY (18.2) The Learner Nursing Programme was a one year full-time course at NQF level 4. After successful completion of the course the learners were registered as Enrolled Nursing Auxiliaries (ENA) which is an entry level position. At the entry level, the Enrolled Nursing Auxiliaries clean patients beds, assist in bathing patients, etc. AGA also provides a learning opportunity to a few top learners to continue their training to the level of Enrolled Nursing, which is at NQF level 5 and this takes the individual to a level where he/she is allowed to administer medication. Prospective learners need to meet the entry level requirements as prescribed by SANC (South African Nursing Council) and the Goldfields Nursing College. The Goldfields Nursing College is the institution at which the individuals are trained on this programme. The training is done in accordance with regulations as set out by the SANC. Practical training takes place at the West Wits AngloGold Ashanti Health Hospital and the Africa Health Care Nursing College. The opportunities for learnership were advertised in local newspapers before each intake and the selection of learners are from the Merafong district. The purpose of the programme is to transform the skills in the communities in which AGA operates. In this process AGA had the opportunity to provide qualifications to 40 learners per year, 20 in each district. Internal nursing experts are responsible to accompany the learners and manage their learning programmes and progress. HDSA The following table shows that for the SLP period, 72 individuals were trained on this programme against a plan of 63. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 45 of 182

46 Enrolled Nursing Auxiliaries - SIMS ( SLP p 72) Year FOREIGNER MALE FEMALE OVERALL COLOURED INDIAN WHITE COLOURED INDIAN WHITE FOREIGNER PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL ENGINEERING LEARNERSHIPS & APPRENTICES FOR THE COMMUNITY (18.2) Engineering skills training was provided to community members in the Gauteng Province to provide them with the opportunity to obtain formal qualifications, which would be applied within the mining sector. The learners acquired skills and knowledge to the level where they have been found capable to perform the work. They gained theoretical knowledge as per curriculum as prescribed by MQA (Mining Qualification Authority) as well as simulated practical tasks as required by the programme. The learners had to meet the criteria set by AGA and also meet the MQA requirements to enter the learnership programme. Learners were recruited from the surrounding areas where AGA operates with the assistance of the Department of Labour Centres. Preference was given to shadow of the headgear candidate when recruiting learners who had the correct qualifications to meet the entry level requirements. The following table shows that for the SLP period, 161 individuals were trained on this programme against a plan of 90. Engineering Learnerships & Apprentices - SIMS ( SLP p 73) Year FOREIGNER MALE FEMALE OVERALL COLOURED INDIAN WHITE FOREIGNER COLOURED INDIAN WHITE PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL PLAN ACTUAL HDSA HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 46 of 182

47 2.3 EMPLOYMENT EQUITY PLAN The company has as at end of 2014 fully complied with all the targets of the Mining Charter with respect to Employment Equity and in certain areas exceeded such targets.the following is an outline of the above stated Mining Charter and MPRDA Regulations requirements: a) Mining Charter Requirement: The original Mining Charter scorecard which was designed to measure compliance requires the company to put in place measures to answer the following questions: Has the company published its employment equity plan, and reported on its annual progress in meeting that plan? Has the company published a plan to achieve a target for HDSA participation in management of 40% within five years, and is implementing this plan? Has the company identified a talent pool and is it fast tracking it? MPRDA Requirement: In terms of the MPRDA, REGULATION 46 (b) (v) states: The contents of a Social and Labour Plan must include a human resources development programme which must include the employment equity statistics which must be completed in the form of Form S contained in Annexure II and the mines plan to achieve the 10 per cent women participating in mining and 40 per cent historically disadvantaged South Africans (HDSA) participation in management within 5 years from the granting of the right or the conversion of the old order right. The following constitutes the company s approach to the above mentioned questions for the period under review: The company submitted its five year Employment Equity (EE) Plan to the Department of Labour (DoL) in 2010 for the period August 2009-July This plan was used to develop the EE Plan in compliance with the MINING CHARTER requirements. The company is also required to report to the DoL on an annual basis, as well as to the DMR. The DoL EE reports are also posted on the company s website on an annual basis. In terms of the Skills Development Act, the company submits its Annual Training report (ATR) and the Workplace Skills Plan (WSP) each year. The Workplace Skills Plan outlines the process of identifying the talent pool and fast-tracking the HDSAs in line with the target as set in the EE plan. In developing the EE Plan, the WSP and the ATR, the company embarks on consultations with the recognised trade unions as required by the EE and Skills Development Act. In light of the above, the SA Region has established an additional forum, namely, SA Region Transformation Steering Committee (SARTSC), which aims to develop, implement and create awareness, and to oversee the compliance obligations with regard to employment equity. The Committee further creates a platform for all stakeholders, including organised labour representatives to monitor employment equity targets, plans and progress, discuss implementation processes for employment equity and to align stakeholders and develop a shared understanding and consensus concerning employment equity in the company. In addition, there are other monitoring structures at board level and also at Business units level whose terms of reference includes the company s performance with respect to the Mining Charter. These Committees meet (separately), others monthly i.e. Branch EE and SDC Committees, while others meet every quarter i.e. CSDC, and Union Management Steering Committees. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 47 of 182

48 AngloGold Ashanti West Wits Operations continuously engages in the following processes in an aim to address employment equity transformation challenges:- Continuous Gap analysis Special effort in the appointment of Senior Management Enhancement of the Talent Pipeline aided by Mentorship and coaching Additional development of skill through bursary scheme Benchmarking of competitive remuneration for key skills Role description and accountabilities In implementing the five years EE Plan, the following initiatives has been in place for the period under review: The recruitment, selection and appointment strategy will continue to apply a 60/40 short listing split in favour of HDSAs to increase the chances of HDSA appointments and enhance the achievement of EE targets; Training and Development initiatives continuously focuses on management development programmes, skills and development programmes and other interventions with the purpose of strengthening HDSA representation in the talent pool; Bursary Schemes and Development Programmes will strengthen the demographical representation in the long term, leading to 2014 targets. The Bursary take into account the EAP in order to promote the development and progression of the HDSA in line with the EE targets as outlined in this Plan; Organised Labour engagement all recognised Trade Unions within our operations will continuously be engaged in matters relating to promoting transformation and they are actively involved in Committees and Forums that are monitoring the employment equity targets and practices. Targets - targets contained in the EE Plan will be continuously monitored and reported on a monthly, quarterly and annual basis in consultation with organised labour; In addition to the initiatives mentioned above, the company has further engaged with its stakeholders, including organised labour representatives at National, Regional and Branch level in a process to develop a successive employment equity plan that is beyond Within this process, an internal audit in accordance with section 19 and 20 of Employment Equity Act was conducted by all Business Units in order to identify barriers to employment equity and affirmative actions to address these barriers were formulated. The EE Plan was submitted to the DoL and approved in April 2015 for the integration into the SLP Plans of The 2010 BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH MINING and MINERALS INDUSTRY provides as follows with regards to Employment Equity: Workplace diversity and equitable representation at all levels are catalysts for social cohesion, transformation and competitiveness of the mining industry. In order to create a conducive environment to ensure diversity as well as participation of HDSA at all decision-making positions and core occupational categories in the mining industry, every mining company must achieve a minimum of 40% HDSA demographic representation at: Executive Management (Board) level by 2014; Senior management(exco) level by 2014; Core and Critical skills by 2014; Middle management level by 2014; Junior management level by 2014; and AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 48 of 182

49 In addition, mining companies must identify and fast-track their existing talent pools to ensure high level operational exposure in terms of career path programmes. The reporting period for all of the above-mentioned targets is March For the purpose of reporting against the Mining Charter targets at the end of the reporting periods, the following definitions apply: Executive Management (Board) shall be defined as follows: Executive Management shall mean Top Management in line with the Employment Equity Act reporting requirements and is based at the Corporate Office, save for the South Africa Region (SAR) Chief Operating Officer (COO), who is based at the South Africa Region Offices; and Board shall mean the AGA Board in terms of the company s Articles of Association. The Board comprises South African and non- South African based members and will be so reported. (It should be noted that Top Management refers to the South African based managers reporting directly to the Chief Executive Officer and who are part of the company s Executive Committee, i.e. the key decision makers of the company). Senior Management (EXCO) shall be defined as follows: Senior Management shall mean employees who are at Paterson Grade E- Band and reported as Senior Management in line with the Employment Equity Act reporting requirements; and Exco shall mean the SAR Exco comprising the SAR Chief Operating Officer and his direct reports based at the SAR Regional Offices. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 49 of 182

50 As at the end of 2014 the company had achieved all the Employment Equity targets as stipulated in the Mining Charter. The following scorecard summarises the progress and achievements that West Wits Operations has made for the period 2010 to 2014: AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 50 of 182

51 The following tables constitute the West Wits Operations EE report for each year of the reporting period (The details of the actuals are covered in Form S): TABLE: WEST WITS 2014 EE PLAN 2014 Mining Male Female Male Foreign National Occ. Levels Charter % HDSA African Coloured Indian African Coloured Indian White White Male Female Targets Top Management 20% 0% 0% 10% 0% 0% 10% 30% 30% 0% 100% 40% 40% Senior Management 15% 5% 4% 8% 3% 1% 4% 57% 2% 0% 100% 40% 40% Prof.qual. - Mid Mgmt. 25% 3% 3% 10% 1% 2% 12% 42% 2% 0% 100% 40% 57% Skilled Technical 41% 2% 1% 9% 2% 1% 8% 30% 6% 0% 100% 40% 64% Semi-skilled 54% 1% 0% 8% 1% 0% 2% 2% 31% 0% 100% 67% U/skilled & Def. Dec. 49% 1% 0% 18% 1% 0% 1% 1% 28% 0% 100% making No 71% Permanent 48% 1% 0% 14% 1% 0% 3% 8% 24% 0% 100% Target 68% Non-Permanent Employees 18% 0% 0% 50% 0% 0% 13% 18% 0% 0% 100% 82% GRAND 48% 1% 0% 14% 1% 0% 3% 8% 24% 0% 100% 68% TABLE: WEST WITS INCLUDING CORPORATE OFFICE 2014 ACTUAL Male Female Male Foreign National Occupational Levels A C I A C I W W Male Female Top Management 14.3% 0.0% 0.0% 0.0% 0.0% 14.3% 14.3% 28.6% 14.3% 14.3% 100% 42.9% Senior Management 16.2% 3.8% 6.7% 3.8% 1.0% 2.9% 5.7% 54.3% 5.7% 0.0% 100% 40.0% Prof.qual. - Mid Mgmt. 19.9% 2.3% 3.5% 8.6% 2.0% 1.4% 15.9% 45.2% 0.3% 0.9% 100% 53.6% Skilled Technical 39.7% 1.0% 0.2% 10.2% 0.6% 0.3% 8.7% 31.2% 8.0% 0.0% 100% 60.8% Semi-skilled 53.8% 0.1% 0.0% 9.6% 0.1% 0.0% 1.7% 1.0% 33.5% 0.0% 100% 65.4% U/skilled & Def. Dec. making 59.4% 0.1% 0.0% 12.4% 0.0% 0.0% 0.0% 0.2% 27.4% 0.5% 100% 71.9% Permanent 53.2% 0.3% 0.2% 11.1% 0.2% 0.1% 2.4% 7.2% 25.0% 0.3% 100% 67.5% Non-Permanent Employees 32.5% 0.0% 0.0% 42.9% 1.3% 0.0% 10.4% 7.8% 5.2% 0.0% 100% 87.0% GRAND 53.0% 0.3% 0.2% 11.3% 0.2% 0.1% 2.4% 7.2% 24.9% 0.3% 100% 67.6% % HDSA Target Actual % HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 51 of 182

52 TABLE: WEST WITS 2013 EE PLAN 2013 Mining Male Female Male Foreign National Occ. Levels Charter % HDSA African Coloured Indian African Coloured Indian White White Male Female Targets Senior Management 14% 4% 3% 6% 3% 1% 4% 61% 2% 0% 100% 35% 36% Prof.qual. - Mid Mgmt. 23% 3% 3% 9% 1% 2% 12% 45% 2% 0% 100% 40% 53% Skilled Technical 40% 2% 0% 9% 1% 1% 8% 32% 6% 0% 100% 40% 62% Semi-skilled 54% 0% 0% 8% 1% 0% 2% 2% 32% 0% 100% 65% U/skilled & Def. Dec. 50% 1% 0% 16% 1% 0% 1% 1% 29% 0% 100% making No 70% Permanent 49% 1% 0% 13% 1% 0% 3% 8% 25% 0% 100% Target 67% Non-Permanent Employees 20% 0% 0% 49% 0% 0% 15% 17% 0% 0% 100% 84% GRAND 49% 1% 0% 13% 1% 0% 3% 8% 25% 0% 100% 67% % HDSA Target TABLE: WEST WITS INCLUDING CORPORATE OFFICE 2013 EE ACTUAL Occupational Levels Male Female Male Foreign National A C I A C I W W Male Female Senior Management 13.7% 3.2% 8.4% 2.1% 0.0% 1.1% 6.3% 60.0% 4.2% 1.1% 100% 34.7% Prof.qual. - Mid Mgmt. 19.3% 2.2% 4.1% 8.5% 1.1% 1.7% 13.8% 46.0% 2.2% 1.1% 100% 50.7% Skilled Technical 39.6% 1.0% 0.2% 9.0% 0.6% 0.2% 9.2% 32.2% 7.9% 0.0% 100% 59.9% Semi-skilled 54.7% 0.1% 0.0% 9.5% 0.1% 0.0% 1.6% 1.1% 32.7% 0.1% 100% 66.1% U/skilled & Def. Dec. making 59.7% 0.1% 0.0% 12.1% 0.0% 0.0% 0.0% 0.3% 27.5% 0.4% 100% 71.9% Permanent 53.5% 0.3% 0.2% 10.6% 0.2% 0.1% 2.4% 7.3% 25.1% 0.3% 100% 67.4% Non-Permanent Employees 31.0% 1.7% 0.0% 41.4% 3.4% 0.0% 10.3% 12.1% 0.0% 0.0% 100% 87.9% GRAND 53.4% 0.3% 0.2% 10.8% 0.2% 0.1% 2.4% 7.3% 25.0% 0.3% 100% 67.4% Actual % HDSA AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 52 of 182

53 TABLE: WEST WITS 2012 EE PLAN Occ. Levels Male Female Male Foreign National African Coloured Indian African Coloured Indian White White Male Female Mining Charter % HDSA Targets Senior Management 14% 4% 3% 6% 2% 1% 5% 63% 2% 0% 100% 30% 34% Prof.qual. - Mid Mngmnt. 21% 2% 3% 8% 1% 2% 12% 48% 2% 0% 100% 40% 50% Skilled Technical 39% 2% 0% 8% 1% 0% 9% 34% 6% 0% 100% 40% 59% Semi-skilled 53% 0% 0% 7% 1% 0% 2% 2% 34% 0% 100% 64% U/skilled & Def. dec. 51% 1% 0% 15% 1% 0% 0% 1% 30% 0% 100% making No 69% Permanent 49% 1% 0% 12% 1% 0% 3% 8% 26% 0% 100% Target 65% Non-Permanent Employees 20% 0% 0% 41% 0% 0% 22% 16% 0% 0% 100% 84% GRAND 49% 1% 0% 12% 1% 0% 3% 8% 26% 0% 100% 65% % HDSA Target TABLE: WEST WITS INCLUDING CORPORATE OFFICE 2012 EE ACTUAL Male Female Male Foreign National Occupational Levels A C I A C I W W Male Female Actual % HDSA Senior Management 12.6% 2.7% 6.3% 0.0% 0.9% 1.8% 8.1% 53.2% 11.7% 2.7% 100% 32.4% Prof.qual. - Mid Mngmnt. 21.2% 2.0% 4.2% 8.5% 1.5% 2.4% 13.6% 43.1% 2.0% 1.5% 100% 53.4% Skilled Technical 38.1% 1.0% 0.1% 8.6% 0.6% 0.3% 9.9% 33.9% 7.3% 0.1% 100% 58.7% Semi-skilled 53.7% 0.0% 0.0% 8.7% 0.2% 0.0% 2.2% 1.1% 34.0% 0.0% 100% 64.8% U/skilled & Def. dec. making 60.2% 0.1% 0.0% 12.1% 0.0% 0.0% 0.0% 0.4% 26.8% 0.4% 100% 72.5% Permanent 53.0% 0.3% 0.2% 10.3% 0.2% 0.2% 2.8% 7.8% 24.9% 0.3% 100% 67.0% Non-Permanent Employees 12.5% 0.8% 1.7% 32.5% 2.5% 3.3% 20.0% 25.0% 0.8% 0.8% 100% 73.3% GRAND 52.6% 0.3% 0.2% 10.5% 0.3% 0.2% 2.9% 8.0% 24.7% 0.3% 100% 67.0% AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 53 of 182

54 TABLE: VAAL RIVER 2011 EE PLAN Foreign Male Female Male MC % % Occ. Levels National HDSA HDSA African Coloured Indian African Coloured Indian White White Male Female Targets Targets Top Management 11% 0% 0% 11% 0% 0% 0% 56% 22% 0% 100% 25% 25% Senior Management 13% 4% 3% 4% 0% 1% 5% 67% 3% 0% 100% 25% 30% Prof.qual. - Mid Mngmnt. 20% 2% 3% 8% 1% 2% 12% 50% 2% 0% 100% 35% 48% Skilled Technical 38% 2% 0% 8% 1% 0% 9% 35% 7% 0% 100% 40% 57% Semi-skilled 53% 0% 0% 7% 0% 0% 2% 2% 36% 0% 100% 62% U/sklled & Def. dec. making 54% 1% 0% 13% 0% 0% 0% 1% 31% 0% 100% No Target 68% Permanent 50% 1% 0% 11% 0% 0% 2% 8% 28% 0% 100% 64% Non-Permanent Employees 22% 0% 0% 36% 0% 0% 25% 17% 0% 0% 100% 83% GRAND 49% 1% 0% 11% 0% 0% 3% 8% 28% 0% 100% 64% TABLE: VAAL RIVER INCLUDING CORPORATE OFFICE 2011 EE ACTUAL Occupational Levels Male Female Male Foreign National A C I A C I W W Male Female Senior Management 9.6% 3.2% 3.2% 0.8% 0.0% 1.6% 8.0% 66.4% 6.4% 0.8% 100% 26.4% 25% Prof.qual. - Mid Mngmnt. 15.7% 1.7% 2.5% 5.7% 0.6% 1.3% 15.9% 53.5% 2.3% 0.8% 100% 43.4% 35% Skilled Technical 34.5% 1.2% 0.1% 7.5% 0.6% 0.2% 8.6% 39.4% 7.7% 0.3% 100% 52.6% 40% Semi-skilled 53.7% 0.3% 0.1% 8.0% 0.2% 0.1% 1.7% 2.3% 33.5% 0.1% 100% 64.1% U/sklled & Def. dec. making 58.7% 0.2% 0.0% 12.6% 0.0% 0.0% 0.0% 0.9% 27.3% 0.3% 100% 71.6% Permanent 51.8% 0.5% 0.1% 10.1% 0.2% 0.1% 2.4% 9.2% 25.4% 0.2% 100% 65.1% Non-Permanent Employees 19.4% 4.8% 1.6% 12.9% 0.0% 0.0% 27.4% 30.6% 3.2% 0.0% 100% 66.1% GRAND 51.7% 0.5% 0.1% 10.1% 0.2% 0.1% 2.5% 9.3% 25.4% 0.2% 100% 65.1% Actual % HDSA 2011 MC % HDSA target No Target AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 54 of 182

55 TABLE: WEST WITS EE 2010 PLAN Occ. Levels Male Female Male Foreign National African Coloured Indian African Coloured Indian White White Male Female Senior Management 13% 4% 3% 4% 0% 1% 5% 67% 3% 0% 100% 25% 30% Prof.qual. - Mid Mngmnt. 20% 2% 3% 8% 1% 2% 12% 50% 2% 0% 100% 35% 48% Skilled Technical 38% 2% 0% 8% 1% 0% 9% 35% 7% 0% 100% 40% 57% Semi-skilled 53% 0% 0% 7% 0% 0% 2% 2% 36% 0% 100% 62% U/sklled & Def. dec. making 54% 1% 0% 13% 0% 0% 0% 1% 31% 0% 100% 68% Permanent 50% 1% 0% 11% 0% 0% 2% 8% 28% 0% 100% 64% Non-Permanent Employees 22% 0% 0% 36% 0% 0% 25% 17% 0% 0% 100% 83% GRAND 49% 1% 0% 11% 0% 0% 3% 8% 28% 0% 100% 64% MC % HDSA Target % HDSA Targets TABLE: WEST WITS INCLUDING CORPORATE OFFICE EE 2010 ACTUAL Male Female Male Foreign National Occupational Levels A C I A C I W W Male Female Actual % HDSA Senior Management 6% 3% 7% 1% 1% 1% 7% 68% 6% 0% 100% 26% Prof.qual. - Mid Mngmnt. 17% 2% 4% 7% 1% 1% 15% 49 2% 1% 100% 48% Skilled Technical 37% 1% 0% 8% 1% 0% 10% 36% 7% 0% 100% 57% Semi-skilled 48% 0% 0% 31% 1% 0% 10% 4% 5% 0% 100% 90% U/skilled & Def. dec. making 56% 0% 0% 7% 0% 0% 0% 0% 36% 0% 100% 63% Permanent 51% 0% 0% 9% 0% 0% 3% 8% 28% 0% 100% 63% Non-Permanent Employees 30% 0% 0% 8% 0% 0% 22% 38% 0% 3% 100% 85% GRAND 51% 0% 0% 9% 0% 0% 3% 9% 28% 0% 100% 63% AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 55 of 182

56 SECTION 3: COMMUNITY DEVELOPMENT Mining Charter: Section 2.6 of the amended 2010 BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER FOR THE SOUTH MINING AND MINERALS INDUSTRY which states as follows: Mine communities form an integral part of mining development, there has to be meaningful contribution towards community development, both in terms of size and impact, in keeping with the principles of the social license to operate. Stakeholders must adhere to the following: Consistent with international best practices in terms of rules of engagement and guidelines, mining companies must invest in ethnographic community consultative and collaborative processes prior to the implementation/development of mining projects; Mining companies must conduct an assessment to determine the developmental needs in collaboration with mining communities and identify projects within the needs analysis for their contribution to community development in line with Integrated Development Plans (IDPs), the cost of which should be proportionate to the size of investment. The Mining Charter Scorecard requirements are indicated below along with the West Wits Operations compliance to date: SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER FOR THE SOUTH MINING INDUSTRY- AGA : WEST WITS ELEMENT DESCRIPTION MEASURE 7 Mine community development Conduct ethnographic community consultative and collaborative processes to delineate community needs analysis Implement approved community projects in line with IDP's of local and major labour sending municipalities. COMPLIANCE TARGET BY 2014 Up-to-date project implementation. PROGRESS ACHIEVED BY 2010 Actual 2011 Actual 2012 Actual Projects were selected in the Host Communities and Labour sending areas which are listed and aligned with the IDPs. Budget for LED, ED and Social projects were secured for 2012 leading up to 2014 for implementation. The future Forum was established. Budget for LED, ED and Social projects were secured for 2012 leading up to 2014 for implementation. The future Forum was launched. Implement of community projects in line with IDP's of local and major labour sending municipalities and as committed in company SLP. REGULATION 46 (c) (iii) of the MPRDA requires that the contents of a social and labour plan must include: c) A local economic development programme which must includei. The social and economic background of the area in which the mine operates; ii. The key economic activities of the area in which the mine operates; iii. The impact that the mine would have in the local and sending communities; iv. The infrastructure and poverty eradication projects that the mine would support in line with the Integrated Development Plan of the area in which the mine operates and the major sending areas; v. The measures to address the housing and living conditions of the mine employees AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 56 of 182

57 3.1 COMMUNITY DEVELOPMENT The following tables outline the progress made with respect to LED projects contained in the approved SLP and Section102 /Regulation 44 application, with Table is a summary of the status of the projects, table outlines all completed projects not affected by Section102/Regulation44 application and table outlines the progress to date with respect to the Section102 /Regulation 44 application SUMMARY OF LED PROJECTS The following is a summary of the achievements made against the projects as committed in the SLP as revised and re-submitted to the DMR: LED: 1 West Wits: SLP Projects Urban planning and formalisation of non-urban AGA land &Property Holdings Budget (R'000) 7.0m Status As per approved Section 102/Regulation44 implementation extended to beyond LED: 2 Waste Management West Wits 3.0m Completed and handed over to the beneficiaries in May 2016 LED: 3 LED: 4 LED: 5 LED: 6 Sub-Acute Hospital 2.5m Completed and handed over to the beneficiaries in June 2013 Business Development Park (Merafong) As per approved Section 102/Regulation44 implementation extended 15m to beyond Community Parks (ORT) As per approved Section 102/Regulation44, the funds of this project 1.0m was allocated to Community Hall, Lutshaya (VR SLP) Schools Laboratory (ORT) Completed and handed over to the beneficiaries in September m and April Goso Forest(Science Laboratory) Completed and handed over to the beneficiaries in September Dudumayo Senior Secondary School (Science Laboratory) Completed and handed over to the beneficiaries in April LED 7 Live Stock Development Programme (ORT) 1.0m Completed and handed over to the beneficiaries in 2014 Ngcengane Shearing Shed Completed and handed over to the beneficiaries in 2014 Ifa Lethu Cattle Farming Completed and handed over to the beneficiaries in 2014 Siyabulela Piggery Completed and handed over to the beneficiaries in 2014 Sakhisizwe Piggery Completed and handed over to the beneficiaries in 2014 AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 57 of 182

58 LED: 8 LED: 9 West Wits: SLP Projects Waste Minimisation (ORT) Budget (R'000) 2.0m Status Completed and handed over to the beneficiaries in June 2015 Schools and educational Facilities West Wits Completed and handed over to the beneficiaries in the respective 10m years below: Wedela Technical High School (Repairs & Renovations) Completed and handed over to the beneficiaries in June 2014 Tsitsiboga Primary School (Science Laboratory) Completed and handed over to the beneficiaries in April 2014 Mbulelo Primary School (Library) Completed and handed over to the beneficiaries in April 2014 Retlile Primary School (Additional Five Classrooms) Completed and handed over to the beneficiaries in April 2014 Hlanganani Primary School (Science Laboratory) Completed and handed over to the beneficiaries in April 2014 Greenspark Primary School (Science Laboratory) Completed and handed over to the beneficiaries in April 2014 Xhobani Primary School Completed and handed over to the beneficiaries in April 2014 LED: 10 Community Development Programme ORT LED: 11 Egoli Housing Development - Merafong ED 1 Peanut Butter Factory ED:2 Cooking Oil Production Plant ED 8 Agricultural Projects (Merafong) 2.5m 0.0m 1.2m 4.0m 4.0m As per approved Section 102/Regulation44. The funds of this project was allocated to Community Hall, Lutshaya under the Vaal River SLP As per approved Section 102/Regulation44.Implementation extended to 2017 As per approved Section 102/Regulation44. (In December 2013 an application in terms of MPRDA Regulation 44/ Section 102 was lodged with the DMR to reallocate the funds to the Kokosi and Wedela Youth Business Hubs which have been completed. As per approved Section 102/Regulation44. In December 2013 an application in terms of MPRDA Regulation 44/ Section 102 was lodged with the DMR to reallocate the funds to ED:8 to increase the Agricultural project. budget to R8m Operational and to be officially handed over to the beneficiaries in m AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 58 of 182

59 3.1.2 DETAILS OF LED PROJECTS Listed below are the completed projects: Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in LED 2: Waste Management Collaborative project between AGA, Sibanye Gold and Harmony in partnership with Merafong City: To enable a local cooperative to start a business and create employment opportunities for the local community with the intention to address youth unemployment and create environmental awareness through waste management and recycling. To hand over the project to the local Municipality after the three year implementation period ( ) as the waste management competency resides with them. R3.0m (R9m in total from each of the 3 Mining Compan ies over a 3 year period. R3.3m (R9.9m total from the 3 Mining companies) Youth job creation Reduction of waste Cleaner, healthier environment. In addition to the permanent jobs created through the establishment of a cooperative, just over pickers and their families benefit from this project. 23 direct jobs plus over 2000 pickers. Merafong City community as outlined under the socioeconomic impact section of this report. Project has been handed over to Merafong Local Municipality on 19 May 2016 at a function attended by the DMR officials, Executive Mayor and officials, Harmony Gold Mine and Sibanye representatives. Waste Recycling Structure has been built. New waste collection truck purchased. The project is producing over 100 tons of recycled waste per month. The project has started a compost plant and selling to local market. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 59 of 182

60 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in LED 6: Schools Laboratories (ORT) Compliment Government in its plans to improve teaching conditions and create an environment that is conducive to producing better results. R3.0m (R1m per year over a period of 3 years.) R2.9m The National Development Plan has prioritised education as key to the development and transformation to the South African economy and society. Maths and Science are very critical in terms of innovation and technology strategy of government which this project seek to contribute towards. 34 short term jobs were created during the course of the projects. On average 2063 learners per annum will benefit from this project. These projects have been completed and handed over to the beneficiaries during the reporting period. An MOU between AGA, ORTDM, District and Eastern Cape Provincial Department of Basic Education was entered into to build two new Science laboratories. The schools were identified using the Eastern Cape Department of Basic Education Priority List. 6.1 Goso Forest Science Laboratory Lusikisiki In agreement with Department of Basic Education an MOU was signed. The school was identified from the Eastern Cape Department of Basic Education Priority List To enhance learners scientific skills. To nurture the science talent of young learners from the primary level so that they can be acquainted and competent in the science world. To assist government in building the necessary infrastructure needed in the community. R1.5m R1.4m The Science Laboratory will assist the teachers to use scientific equipment and train the learners in conducting experiments and practical s. This will enable a good strong foundation and create interest in science and technology. This should ultimately lead to improved results in Physical Science and Life Sciences in Matric and at tertiary levels 19 short term jobs were created during the course of the project. On average 949 learners will benefit from this project on an annual basis. Science Laboratory was completed in 2013 and fully equipped. Project was launched on the 25 th September 2013 by the then Minister of Mineral Resources Ms. Susan Shabangu, Minister of Basic Education Mrs Angie Motshekga and South African Region Chief Operating Officer Mr. Mike O Hare. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 60 of 182

61 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in at later stages. A local based entrepreneur was contracted to undertake this project. The employees were sourced from the surrounding areas. During the construction phase locals were exposed to various trade skills. There is a possibility of the contractor being up scaled to a higher CIDB grading. Dudumayo Senior Secondary School- Science Laboratory Mqanduli In agreement with Department of Basic Education an MOU was signed. The school was identified from the Eastern Cape Department of Basic Education Priority List To enhance learners scientific skills. To nurture the science talent of young learners from the primary level so that they can be acquainted and competent in the science world. To complement government in building the necessary infrastructure needed in the community. R1.5m R1.5m The Science Laboratory will assist the teachers to use scientific equipment and train the learners in conducting experiments and practical s. This will enable a good strong foundation and create interest in science and technology. This should ultimately lead to improved results in Physical Science and Life Sciences in Matric and at tertiary levels at later stages. A local 15 short term jobs were created during the course of the project. On average 1114 learners will benefit from this project on an annual basis. The project was handed over to the Department of Education in April AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 61 of 182

62 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in based entrepreneur was contracted to undertake this project. The employees were sourced from the surrounding areas. During the construction phase locals were exposed to various trade skills. There is a possibility of the contractor being up scaled to a higher CIDB grading. LED7: Live Stock Development (ORT) All four projects were sourced from ORT District Municipality IDP document (see detail below) To facilitate the development of sustainable development programmes that would assist communities to earn a living from their livestock thereby alleviating poverty and creating employment opportunities. R1.0m R1.4m Job creation, poverty alleviation, food security, training and mentoring of small farmers to become viable SMME s. 40 sustaina ble jobs were created by this project. 56 community members participate in these projects. All four projects were completed and handed over to the beneficiaries in AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 62 of 182

63 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in Ngcengane Shearing Shed Mthatha To upgrade the Shearing Shed by: Painting the building inside and outside, installing gutters, down pipes and water tank. Upgrading electrical and water reticulation Construction of a dipping tank, ablution facilities and separate camps for sheep Purchasing of wool pressing machine, sorting trays and benches Purchasing of 26 rams to introduce superior breeding stock, and electric shearing machine. R257k R390k Job creation, poverty alleviation, food security, training and mentoring of small farmers to become viable SMME s. The project has the potential to generate an average of around R1m of revenue per annum. 12 sustaina ble jobs were created by this project. 30 community members participate in this project. The upgrading of the shed grading structure was completed and handed over to the beneficiaries in An additional amount of R was invested in the purchase of the shedding machine to sustain this project. Rams and shearing machine purchased. The project sells its wool to the international market via BKB Corporate. 7.2 Ifa Lethu Cattle Farming Lusikisiki To assist a group of former mine work employees wives in Lambase village to kick start a small scale cattle farm. R236k R347k Job creation, poverty alleviation, food security, training and mentoring of small farmers to become viable SMME s 10 sustaina ble jobs were created by this project 5 This project was completed and handed over to the beneficiaries in An additional amount of R111k was spent On the erection of a perimeter fence in addition to the fifteen heifers and one bull purchased. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 63 of 182

64 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in Siyabulela Piggery Libode To assist a group of women in our labour sending community to upgrade the existing Pig Pens, extend water reticulation to the pens and purchase boars and sows. R165k R240k Job creation, poverty alleviation, food security, training and mentoring of small farmers to become viable SMME s 8 sustaina ble jobs were created by this project 13 This project was completed and handed over to the beneficiaries in An additional amount of R75k was spent on the purchase of additional stock increase the reproduction capacity of the existing stock thereby generating a sustainable income for the beneficiaries. 7.4 Sakhisizwe Piggery Ngqeleni To assist a group of women in our labour sending community to upgrade the existing pig pens, to drill a new bore hole and purchase boars and sows R224k R299k Job creation, poverty alleviation, food security, training and mentoring of small farmers to become viable SMME s. 10 sustaina ble jobs were created by this project 8 This project was completed and handed over to the beneficiaries in Structure upgrade is completed New stock has been purchased and new bore hole completed. LED 8: Waste Minimization (ORT) To complement the Municipality in waste Minimization by purchasing two Waste removal trucks. R2.0m R.02m Contribution to a healthier environment for the citizens of the OR Tambo District Municipality through the reduction of pollution to the environment and cleaner and healthier environment. 8 direct jobs were created by this project. OR Tambo District Municipality comprises 5 Municipalities with an estimated population of 1.3 million. This project was completed and handed over to the beneficiaries in Two waste removal trucks were purchased and delivered to the OR Tambo District Municipality and are being utilized throughout the district AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 64 of 182

65 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in Waste collection and transportation. LED 9: Schools and Educational Facilitates: (Merafong) R10m R10m The National Development Plan has prioritised education as key to the development and transformation to the South African economy and society. Maths and Science are very critical in terms of innovation and technology strategy of government which this project seek to contribute towards 148 short term jobs were created during the course of the project. On average 6079 learners will benefit from these projects on an annual basis. These projects have been completed and handed over to the beneficiaries during the reporting period. An MOU between AGA, Merafong Local Municipality, District and Gauteng Provincial Department of Basic Education were entered into to provide school infrastructure. The schools were identified using the Gauteng Department of Basic Education Priority List. 9.1 Wedela Technical High Science and Computer Laboratories and Major Renovations at Wedela. To enhance learners scientific skills. To nurture the science talent of young learners from the primary level so that they can be acquainted and R1.2m R1.2m The Science Laboratory will assist the teachers to use science equipment and train the learners in conducting experiments and practical s. This will enable a good strong 25 short term jobs were created during the course of the On average of learners will benefit from this on an annual basis This project was launched on the 14 June 2013 by the Deputy Minister of Mineral Resources, Mr Godfrey Oliphant, former Gauteng MEC of Basic Education Ms Barbara Creecy and former South African Region Chief Operating Officer Mr. Mike O Hare. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 65 of 182

66 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in competent in the science world. To assist government in building the necessary infrastructure needed in the community. To help learners and teachers to access information effectively and efficiently Educate and assist learners and teachers through the effective use of Information Technology Resources Complement Government to provide easy access to learning via web pages and online resources To help students find answers to questions, whether posed in the classroom or based on personal interests. foundation and interest in science and technology. This should ultimately lead to improved results in Physical Science and Life Sciences in Matric and at tertiary levels at later stages. Information, Communication and Technology (ICT) skills of learners and teachers Will prepare learners to be functional literate on ICT. On average 1058 learners will access the ICT Centre annually and beyond the Life of Mine. A local based entrepreneur was contracted to undertake this project. The employees were sourced from the surrounding areas. During the construction phase locals were exposed to various trade skills. There is a possibility project. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 66 of 182

67 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in of the contractor being up scaled to a higher CIDB grading. 9.2 Tsitsiboga Primary School- Science Laboratory Khutsong. To enhance learners scientific skills. To nurture the science talent of young learners from the primary level so that they can be acquainted and competent in the science world. To assist government in building the necessary infrastructure needed in the community. This will lead to improved results in Physical Science and Life Sciences in Matric and at tertiary levels at later stages. R1.3m R1.1m The Science Laboratory will assist the teachers to use science equipment and train the learners in conducting experiments and practical s. This will enable a good strong foundation and create interest in science and technology. This should ultimately lead to improved results in Physical Science and Life Sciences in Matric and at tertiary levels at later stages. A local based entrepreneur was contracted to undertake this project. The employees were sourced from the surrounding areas. During the construction phase locals were exposed to various trade skills. There is a possibility of the contractor being 28 short term jobs were created during the course of the project On average of learners will benefit from this project on an annual basis. Project was launched on 25 April 2014 by the then Minister of Mineral Resources Ms. Susan Shabangu and South African Region Chief Operating Officer Mr. Mike O Hare. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 67 of 182

68 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in up scaled to a higher CIDB grading. 9.3 Mbulelo Primary School Library Khutsong. To expose learners to materials which reflect the rich diversity of our world. To promote awareness and use of resources available in the library, both print and electronic. To help leaners find answers to questions, whether posed in the classroom or based on personal interests. To promote the learners enjoyment of and commitment to reading. To encourage an appreciation of the valuable resources available in libraries. R1.3m R1.4m Will contribute towards the improvement in the literacy levels of the learners at an early stage thereby contributing to the better results at Secondary, High school and further education levels. A local was contracted to undertake this project and employees sourced from the surrounding areas. During the construction phase locals were exposed to various trade skills and the contractors chances of being upgraded to a higher CIDB grading increased. 23 short term jobs were created during the course of the project On average of 767 learners will benefit from this project on an annual basis. Project was completed and launched on 25 April 2014 by the former Minister of Mineral Resources Ms. Susan Shabangu and former South African Region Chief Operating Officer Mr. Mike O Hare. 9.4 Retlile Primary School 5 Classrooms Kokosi. To reduce overcrowding To improve teacher learner ratio R2.2m R2.1m The migration of people to urban areas makes it difficult for urban schools to cope with the increasing 16 short term jobs were created On average learners will benefit from this Project was launched on 25 April 2014 by the then Minister of Mineral Resources Ms. Susan Shabangu and South African Region Chief Operating Officer Mr. Mike O Hare. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 68 of 182

69 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in Contribute to the better quality of education and thereby contributing towards the achievement of Government Priority Goals as outlined in the National Development Plan. Complement government in its plans to improve teaching conditions and create an environment that is conducive to producing better results and learners. number of learners. A local based entrepreneur has been contracted to undertake this project. The employees were sourced from the surrounding areas. A local was contracted to undertake this project and employees sourced from the surrounding areas. During the construction phase locals were exposed to various trade skills and the contractors chances of being upgraded to a higher CIDB grading increased.. during the course of the project project on an annual basis. 9.5 Hlanganani Primary School- Science Laboratory Khutsong. To enhance learners scientific skills. To nurture the science talent of young learners from the primary level so that they can be acquainted and competent in the science world. R1.3m R1.2m The Science Laboratory will assist the teachers to use science equipment and train the learners in conducting experiments and practical s. This will enable a good strong foundation and 23 short term jobs were created during the course of the project On average 1024 learners will benefit from this project on an annual basis The project was handed over to the Gauteng Department of Education and the community on 25 June AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 69 of 182

70 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in To assist government in building the necessary infrastructure needed in the community. This will lead to improved results in Physical Science and Life Sciences in Matric and at tertiary levels at later stages. interest in science and technology. This should ultimately lead to improved results in Physical Science and Life Sciences in Matric and at tertiary levels at later stages. A local based entrepreneur was contracted to undertake this project. The employees were sourced from the surrounding areas. A local was contracted to undertake this project and employees sourced from the surrounding areas. During the construction phase locals were exposed to various trade skills and the contractors chances of being upgraded to a higher CIDB grading increased. 9.6 Greens Park Primary School- Science Laboratory To enhance learners scientific skills. To nurture the science talent of R1.3m R1.5m The Science Laboratory will assist the teachers to use science equipment 15 short term jobs were On average 640 learners will benefit on The project was handed over to the Gauteng Department of Education and the community on 25 June AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 70 of 182

71 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in Greenspark. In agreement with Department of Basic Education an MOU was signed. The school was identified from the Gauteng Department of Basic Education Priority List. young learners from the primary level so that they can be acquainted and competent in the science world. To assist government in building the necessary infrastructure needed in the community. This will lead to improved results in Physical Science and Life Sciences in Matric and at tertiary levels at later stages. and train the learners in conducting experiments and practical s. This will enable a good strong foundation and interest in science and technology. This should ultimately lead to improved results in Physical Science and Life Sciences in Matric and at tertiary levels at later stages. A local was contracted to undertake this project and employees sourced from the surrounding areas. During the construction phase locals were exposed to various trade skills and the contractors chances of being upgraded to a higher CIDB grading increased. created during the course of the project an annual basis. 9.7 Xhobani Primary School- Library To expose learners to materials which R1.4m R1.5m Will prepare learners to be functional literate. 18 short term jobs On average 965 learners will benefit The project was handed over to the Gauteng Department of Education and the community on 25 June AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 71 of 182

72 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in Wedela. reflect the rich diversity of our world. To promote awareness and use of resources available in the library, both print and electronic. To help leaners find answers to questions, whether posed in the classroom or based on personal interests. To promote the learners enjoyment of and commitment to reading. To encourage an appreciation of the valuable resources available in libraries. Ensure reading and learning at an early age, also capacitate learners with information to become more informed. A local based entrepreneur has been contracted to undertake this project. The employees will be sourced from the surrounding areas. A local was contracted to undertake this project and employees sourced from the surrounding areas. During the construction phase locals were exposed to various trade skills and the contractors chances of being upgraded to a higher CIDB grading increased. were created during the course of the project from this project on an annual basis. Merafong Community Park (Beyond Compliance additional To contribute towards to an engaged youth and social cohesion by encouraging the community to lead R2.3m (was added) R2.6m Contribute towards the reduction of rate of crime by enabling young people and their parents to spend time 23 short term jobs were created An approximately population of Khutsong This project was requested by the Merafong Municipality post the approval of the SLP. On engagement with the DMR the project was subsequently approved as an additional SLP project. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 72 of 182

73 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiaries Project Milestones Achieved in project) healthy life styles by exercising on regular basis. with their children and improving their sporting skills. during the course of the project community will benefit from this project. This project was launched on the 14 June 2013 by the Deputy Minister of Mineral Resources, Mr Godfrey Oliphant, and former South African Region Chief Operating Officer Mr. Mike O Hare. An additional R300k was spent on erecting additional playing equipment and ablution facilities. Youth Business Hubs in Kokosi and Wedela The main objective of this project is reduce youth unemployment foster a culture of entrepreneurship amongst the youth. R1.2m R1.6m These youth business hubs will contribute to employment creation and development of entrepreneurship amongst the youth. 35 short term jobs were created during the course of the project and 16 direct jobs. An approximately population of Wedela and Kokosi communities will benefit from this project. The project was completed in 2015 handed over to the Merafong Municipality and beneficiaries on 20 May Erection of two Business Hub structures is complete with: Brick and mortar walls Extensive paving Galvanized roof sheeting Shade netting Environmental compliant oil sump/separator Each Business Hub structure have the following services: Drive through car wash Food and drinks kiosk Store room Barbershop (mini hair salon) Chesa Nyama Toilets for both men and females The project has been completed and handed over to the beneficiaries AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 73 of 182

74 3.2. Amendment of Social and Labour Plan Projects: Section 102/Regulation 44 Application LED PROJECTS Table 2: Amendment Social and Labour Plan in Progress Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiarie s Project Milestones Achieved in LED 1: Urban Planning & Formalisation of Non-Urban AGA Land and Property Holdings The objective of this project is to formalize and incorporate the mine villages and areas into the greater Merafong Municipality thereby creating sustainable and viable community post mining operations. R7 m R0.056m Creation of a sustainable and viable community post mining operations by enabling the employees and communities to buy and sell company houses once the areas had been proclaimed. Consulta nts employed to do feasibility studies. Merafong City community Progress in this project has been delayed by the need for in-depth studies to be undertaken by the Municipality to ensure the sustainability of the integrated areas into the greater Merafong Municipality. It is envisaged that the project will be completed by Part of the budget will also be spent in the feasibility studies on the Egoli Housing development in Fochville. Township Establishment application approved Base technical studies and feasibility studies completed Approval from all relevant Government Departments, including all Departments of the Local Authority in respect of the township establishment Establishment of a Technical Coordination Committee; Phasing Principles and Process agreed with the Local Authority Public Participation Programme relating to the formalization completed. Detailed Bulk Services Status Quo underway to determine to determine level of services AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 74 of 182

75 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiarie s Project Milestones Achieved in acceptance by the Merafong Council. Progress reporting Implementing and Mandating Committee. LED 4: Business Development Park ( Enterprise Development Centre) Develop SMMEs by establishing the Enterprise Development Centre to identify, train, support and mentor entrepreneurs/enterp rise development and link procurement profiles of stakeholders with the relevant regions demand profile R15 M R0.04m Creation of 155 enterprises (comprising 128 new and 27 existing enterprises) over a 3 year period which has the potential to deliver jobs at an estimated rate of 2.5 jobs per enterprise (388 jobs). 00 Merafong City community The implementation of this project was delayed due to the need to source an additional funding of R15m from the National Treasury Jobs Fund and to satisfy the requirements of the grant from the Jobs Fund EDC to be operational from 1 July 2016 and to be handed over to the beneficiaries in July The following have been concluded: - A Project Steering Committee has been formally constituted, mandated to manage and monitor the implementation milestones and operational deliverables supporting the sustainability of the Enterprise Development Centre. - The main hub has been identified at the Civic Centre in the CBD, where visibility and accessibility is very high. - Renovations are complete - The advert for the Implementing Agency was distributed and bid documents were submitted on 02 June Bid assessment committees (Evaluation and Adjudication Committees) have been established - Appointment of implementing agent AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 75 of 182

76 Project Name: Project Objectives : Budget Actual Expenditure Socio-economic impact of the project Jobs created Beneficiarie s Project Milestones Achieved in concluded. LED 11: Housing Development (Fochville) To contribute towards housing development in Merafong by facilitating the development of delivery of affordable housing by donating 19 stands. To be funded from the R7m under LED 1. R0.567m Job creation, economic development and empowerment of building consortium. Fully serviced land being donated to and transferred to Merafong Municipality at zero value Consultants employed to implemen t the project Merafong City community The plans to donate land for the conversion of 19 stands into Community Rental Units were completed and approved by Management and the Municipality at the Mandating Committee in May It is envisaged that this project will be completed by the end of ED 2: Agricultural Project The objective of this project is to create sustainable jobs in the community, thereby decreasing the levels of poverty and unemployment. R8m R3.28m To create sustainable income generating (IG) jobs in the community, thereby decreasing the levels of poverty, unemployment and contributing to food security 15 direct jobs Merafong City community Project is operational and is to be handed over to the beneficiaries and exited by the company by end of July 2018, latest. AGA together with Merafong Local Municipality identified suitable land for the project near Wedela Township. The land that was identified is an 18 hectares owned by Merafong Local Municipality The project is divided into the following phases: 1. Built Phase- completed 2. Operational Phase- ongoing 3. Handover phase AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 76 of 182

77 3.3 Social Investment Spending Beyond Compliance In 2011 the company reviewed its approach and response to socio-economic needs in our hosts and labour sending communities. In order to respond well and holistically to these needs the company developed socio-economic development framework that looked at identifying areas to be funded and supported by a clearly outlined funding model. This resulted in a funding model that goes beyond compliance comprising, amongst others, a Social and Institutional Development (SID) Fund dedicated to financially support NGOs and communities in our host and labour sending areas. In addition to this the SA Region s SID Fund a Corporate CSI and Chairman Fund was established to respond to the broader needs of the South African society outside of our host and labour sending areas. The following table is a breakdown of the community investment by the South Africa Regions SID Fund on social projects: Budget Actual Variance on Budget West Wits SID R15m R14.7m R0.3m Labour Sending SID* R7.5m R7.15m R0.35m R22.5m R21.85 R0.65 The following table is a breakdown of the community investment by the Corporate CSI and Chairman Fund on social projects: YEAR RANDS R R R R R CSI SPEND R AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 77 of 182

78 3.4 Social leases As part of AGA s initiatives to go beyond compliance, AGA assists organisations, SMMEs and individuals in the community with the requisite infrastructure for service delivery by providing premises at nominal rental rates. Deserving organisations and individuals benefit from the social leases scheme. The following table shows the number of beneficiaries and total social contribution that is calculated using their nominal rentals charged vs. Market related rates applicable for 2010 to YEAR NUMBER OF SOCIAL LEASES SOCIAL SPENDING R R R R R R AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 78 of 182

79 3.5 HOUSING AND LIVING CONDITIONS REGULATION 46 (c) (iv) of the MPRDA stipulates that the contents of a social and labour plan must include measures to address the housing and living conditions of the mine employees. The Mining Charter Scorecard states as follows with regards to Housing and Living conditions: For company provided housing, has the mine, on consultation with stakeholders, established measured for improving the standard of housing, including the upgrading of the hostels, conversion of hostels to family units and promoted home ownership options for mine employees? Companies will be required to indicate what they have done to improve housing and show a plan to progress the issue over time, and is implementing the plan? For company provided nutrition, has the mine established measures for improving the nutrition of mine employees? Companies will be required to indicate what they have done to improve nutrition and show a plan to progress the issue over time and is implementing the plan? AGA has achieved 100% compliance target with regards to its hostel conversion programme as outlined in its SLP by converting hostels into both Single Accommodation and Family Units. The company has also reached an agreement with the recognised labour unions with respect to its Home Ownership Scheme which is currently being rolled out. The following is an outline of the company s achievement with respect to Housing and Living Conditions: 1 Upgrading of Residences into Single Room Accommodation The following has been agreed in the various consultation forums, as the strategic basis for residence upgrading: Increased levels of privacy are pursued through the redevelopment of communal accommodation units into single rooms. Redevelopment work started in At the end of the 2014 reporting period 5070 single rooms were created at a cost of R million. AngloGold Ashanti has completed all single room redevelopments in 2013 in order to comply with the Mining Charter requirements. The above constitutes an achievement of 100% against the 100% Mining Charter target required for However as a consequence of an unplanned event the reinstatement and transfer of ex Moab Khotsong residents to TauTona and Mponeng, resulted in 24 employees temporarily sharing rooms at Ntshonalanga residence. This additional work has been completed with all of the 24 employees being accommodated in single rooms. 2 Redevelopment of residences to Family Units As part of AngloGold s Ashanti s residence redevelopment for sustainable development, redundant residences have already been converted into Family Units. This approach has also been incorporated into the company s future planning. A total of 170 family units have been redeveloped at a total cost of R37.74 million. This constitutes an achievement of 100% against the 100% Mining Charter target required for The Company achieved 100% compliance target with regard to the single room accommodation and hostel conversion programme as by the end of 2014.Thus, all employees residing in company accommodation were staying in either in Single Room Accommodation, or Family Accommodation. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 79 of 182

80 The company is currently implementing the Home Ownership undertakings and the progress for this quarter is as follows: The company has finalized the home ownership scheme framework which includes the Memorandum of Understanding signed with all organised labour structures. The AGA Home Ownership Scheme aims to enable employees at AGA s operations in South Africa to purchase a home and step onto the home ownership ladder. The HOS aims to offer employees the opportunity to purchase the company owned houses The HOS targets employees who want to buy a house or a vacant stand in the proclaimed areas of both the Matlosana and Merafong local municipalities. The Scheme has been designed to be equitable to all employees who choose, and are able to participate in it, and to be sustainable over the long-term, with the intention to offer one home per family through the Scheme. It has also been structured to improve affordability levels on participating employees. The AGA Home Ownership Scheme aims to enable employees at AGA s operations in South Africa to purchase a home and step onto the home ownership ladder. The scheme has also been structured to improve affordability levels on participating employees AGA has conducted surveys to establish employees housing preferences and a detailed affordability review to understand employee s disposable income, a key driver in determining what employees can afford. AGA consulted with the major banks and put processes to assist eemployees who are interested in purchasing houses to apply for mortgage bonds. In order to enhance affordability potential purchasers are assisted to apply for government subsidies (FLISP) which ranges from R R depending on the salary income of the applicant. We have established that there will be no fringe benefit tax payable on the purchase price if the property is sold at market value irrespective of the value of the property. If the property is sold at less than market value and the total remuneration of the employee does not exceed R250, 000 in the year of the sale\ transfer and the market value of the property does not exceed R450, 000 then no fringe benefit tax will be payable. AGA has established consultative forums on housing and living conditions. Monthly and quarterly forum meetings are held to discuss housing related matters. One of the outcomes of the consultative forums is a Memorandum of Understanding signed with organized labour stakeholders on 5 November The MOU stipulates the Guidelines for the sale of residential units to employees and to the broader communities in the event that employees are not interested. As part of the commitment to facilitate home ownership for employees, support is extended to purchasers in the following manner: The company has established a one stop shop that will assist employees with the process of purchasing company houses by facilitating loan application, property registration and transfer and training on home ownership AGA will sell the properties at market value to avoid Purchasers being lured into immediately on-selling them at a profit to make a windfall gain. It is important to note that the house values are based on professional valuation less refurbishment costs (dependant on the condition of the house). The prices are further discounted by 10% to enhance affordability. The discount will assist in AGA to meet the objective to enable home ownership for employees, and purchasers to reap the long-term benefits of homeownership. By selling properties below market value, AGA would further run the risk of undermining the housing market in the area, which would affect the long-term growth in property prices and any future housing projects that AGA may decide to roll out. As per the Wage Agreement, first-time buyers who earn less than R per month, are paid a monthly Homeownership Allowance ( HOA ) equal to the monthly Living-Out Allowance ( LOA ) plus a premium calculated as 10 (ten) per cent of the LOA. Potential purchasers will be required to attend the home ownership training prior to signing the deed of sale AGA initiated a tender process in search for conveyancing services providers that were local and affordable to the employees. An independent tender process was initiated to obtain suitable candidates via the normal Commercial and Supply Chain Process. Corporate Legal Department will ensure that there are adequate controls in place for all legal documents including all relevant documentation for transfer and registration of the property. The company owned stands in Wedela were identified for a project to build affordable housing and during 2012, AGA commenced and completed a project to build 56 houses in Wedela Township as part of the broader AGA home ownership scheme. The plan is to sell the 56 houses to employees in what is known as the Wedela Development project. It is noteworthy that the building project created some local employment opportunities for Wedela residents. The company has engaged and consulted with Merafong Municipality regarding the proposal for the construction of community rental project in Fochville Town. The project aims to develop 18 large vacant stands measuring 1.9 ha and yielding 76 residential units. AGA will fund the project feasibility studies and apply for AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 80 of 182

81 the project funding from the Gauteng Provincial Government. The project plans were also shared with the organized labour structures during the West Wits Future Forum and the Department of Mineral Resources SLP Unit. Feedback will be given to the Merafong Municipality at the 2016 quarter one Mandating Committee meeting where-after the CRU projects will be initiated. It is worth noting that employees have shown a high level of interest to buy the company owned houses. A total of 478 employees in the have applied to buy their rented houses from the company, including employees who have opted for voluntary separation packages and\or medical exit. In terms of incorporation of mine village, AngloGold Ashanti appointed consultants to assess and quantify the services upgrading required in order to meet the municipal and SANS 1936 standards for incorporation of mine villages into the local municipalities. The incorporation of the villages will not yield any benefits to the company at this time and alternative use (such as industrial parks) of village infrastructure is currently being assessed. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 81 of 182

82 SECTION 4: PROCUREMENT 4.1 Preferential Procurement Mining Charter Requirement: In terms of Procurement and Enterprise Development the amended 2010 BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH MINING AND MINERALS INDUSTRY states as follows: Local procurement is attributable to competitiveness and transformation, captures economic value, presents opportunities to expand economic growth that allows for creation of decent jobs and widens scope for market access of South African capital goods and services. In order to achieve this, the mining industry must procure services of BEE entities in accordance with the following criteria: Procure a minimum of 40% of capital goods from BEE entities by 2014; Procure 70% of services from BEE entities by 2014; Procure 50% of consumer goods from BEE entities by 2014; Ensure that multinational suppliers of capital goods annually contribute a minimum of 0.5% of annual income generated from local mining companies towards socioeconomic development of local communities into a social development fund from 2010; The targets above are exclusive of non-discretionary procurement expenditure. The Mining Charter scorecard requirements are indicated below along with the AGA compliance as at end of December 2014: SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWEREMENT CHARTER FOR THE SOUTH MINING INDUSTRY - AGA ELEMENT CATEGORY Target Actual Target Actual Target Actual Target Actual Target Actual Capital 5% 39% 10% 36% 20% 39% 30% 46% 40% 53% Procurement & Enterprise Development goods Services 30% 29% 40% 41% 50% 43% 60% 57% 70% 73% Consumable goods 10% 40% 15% 48% 25% 50% 40% 56% 50% 67% Annual spend on 0.5% of Awaiting 0.5% of Awaiting 0.5% of Awaiting 0.5% of Awaiting 0.5% of Awaiting procurement procurement DMR procurement DMR procurement DMR procurement DMR procurement DMR from value Guidance value Guidance value Guidance value Guidance value Guidance multinational suppliers The table above shows that as at the end of December 2014, the company complies with all targets in the three main categories of spend. Capital spend at 53% against the target of 40%, Services spend at 73% against the target of 70% and Consumable spend at 67% against the target of 50%. The preferential procurement efforts initiated AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 82 of 182

83 since 2013 resulted in significant improvements with respect to the Mining Charter compliance requirements, especially on the Services Spend category which remained below target for a long time. The total BEE spend is R4.651bn, achieving an overall 67% with qualifying BEE entities. SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWEREMENT CHARTER FOR THE SOUTH MINING INDUSTRY - AGA : WEST WITS OPERATIONS ELEMENT CATEGORY COMPLIANCE 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual TARGET BY 2014 Procurement & Capital goods 40% 39% 43% 48% 43% 62% Enterprise Development Services 70% 29% 24% 38% 51% 70% Consumable goods 50% 40% 51% 56% 57% 69% Annual spend on procurement from multinational suppliers 0.5% of procurement value Awaiting DMR Guidance Awaiting DMR Guidance Awaiting DMR Guidance Awaiting DMR Guidance Awaiting DMR Guidance In the West Wits Operations, the company continued to seek and acquire HDSA suppliers for goods and services required by our business units, and also encouraged our traditional suppliers to embark on their entities Black ownership transformation to ensure compliance with BEE requirements (i.e. a minimum of 25% + 1 vote of share capital is directly owned by HDSA as measured in accordance with flow through principle). As at the end of December 2014 the West Wits Operations spent R1.719bn with qualifying BEE suppliers, achieving an overall 68% towards the 2014 targets. The table above shows an achievement of 62% for Capital Spend, 70% for Services and 69% for Consumable Goods Spend. To progress the attainment of BEE targets the following activities were implemented:- AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 83 of 182

84 4.2 Enterprise Development Small, Medium and Micro Enterprises Development Programme 1. Update on the Masakhisane Investment (Pty) Ltd Fund Of the committed budget of R30 million over 3 years for Merafong to establish an Enterprise Development Fund to support SMMEs in Merafong on an interest free loan, R 3.86 million has been spend so far. The objective of the Fund is to establish a revolving account that will go beyond the life of the SLPs It is envisaged once the EDC is operational more SMMEs participating in the incubation programme will be funded in line with the targets of SMMEs and job opportunities as outlined in the SLP. 2. Update on the Enterprise Development Centre The implementation of this project was delayed due to the need to source an additional funding of R15m from the National Treasury Jobs Fund and to satisfy the requirements of the grant from the Jobs Fund. EDC to be operational from 1 July 2016 and to be handed over to the beneficiaries in July Community Briefings and Prelaunch Quarterly briefing sessions have been held in Merafong. Business Community has been fully briefed in the EDCs and requirements for participation in the program 4. Sustainability Strategy Engagements with development entities Government, including the West Rand Development Agency, Small Enterprise Development Agency and National Empowerment Fund are at an advanced stage to take over the running of the EDC post July 2018 in line with their legal mandate.. Enterprise Development Incubation and Support The following is a summary of the progress made against the incubation and support projects as committed in the West Wits: SLP Projects No Name of Project Loan Amount Granted Comments 1 Amazing Laundry R Both loan fully paid (R and R35 000) 2 EZ trade 263 R Loan fully paid AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 84 of 182

85 West Wits: SLP Projects No Name of Project Loan Amount Granted Comments 3 Jei Jei Wheel Alignments and Mechanics R Loan still active 4 PB Mamello Sewing R Loan still active 5 Moitsheki Funeral Homes R Loan still active 6 Tsheyanda Bakery R Loan still active 7 Smellnice Car Wash R Loan still active 8 MPS Pool and Games R Loan still active 9 Sizani Royal Steel R Loan still active 10 Ekhaya Accommodation Non-Financial Support Business supported and still operational 11 ATDS Kiosk Non-Financial Support Business supported SUB R West Wits: Additional Loans No Name of Project Loan Amount Granted Comments 12 Lobilo Restaurant R Loan still active See summary in section below. 13 Onk-E-Wonke Trading CC R Loan still active See summary in section below 14 Tsubra Trading Enterprise CC R Loan still active 15 Uribrant Designz CC R Loan still active 16 A1 Merafong Chemicals (Pty) Ltd R Loan still active 17 BEE Bin Cleaning - Merafong (Pty) Ltd R Loan still active 18 Rinky's Hair And Beauty Parlour CC R Loan still active 19 Merafong Community Digi Hub (Pty) Ltd R Loan still active SUB R (SLP and additional loans) R AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 85 of 182

86 Enterprise Development Projects The following is a summary of the progress made against the enterprise development projects which were planned in the Project Name: Project Objectives : Budget Actual Expenditu re Socio-economic impact of the project Jobs created Beneficiaries Milestones achieved ED 1: Peanut Butter Factory ED 2: Cooking Oil Production Plant ED 3: Fish and Chips Outlet (Franchise) ED 4: Landscaping ED 5: Trailer Manufacturing Establishment of the peanut butter production plant using peanuts or macadamia nuts. Establishment of the cooking oil production plant using sunflower, macadamia nuts or olives. Establishment of the fish and chips franchise to empower Lolibo restaurants a local food catering and events management facility. Empowerment of an existing local business that has secured a three year contract with Merafong Local Municipality to be able to procure its own equipment and to create more employment opportunities. Employment of an existing trailer manufacturing business. The AGA support will largely be to enable the trailer manufacturing R1,2 Million R0 Job creation, economic development and potential local supplier. R4 Million R0 Job creation, economic development and local suppliers. R R Job creation, economic development. R R 0 Job creation, economic development. R R 0 Job creation, economic development. None None The project was changed through a section 102 application and the budget was used for Business Hubs See Youth Business Hubs under LED section. None None The project was changed through a section 102 application and the budget was used to supplement the Agricultural project See Agricultural project under LED section None None The franchise never operated due to challenges with Franchise operations. The money was disbursed to the Franchising Operation, matter was referred for legal advice. None None The project was not approved. Hence the disbursement was not finalised. Info nor availed at time of report writing. Info not availed at time of report writing The loan was advanced to the business. Report on milestones and achievements could not be sourced from the enterprise. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 86 of 182

87 Project Name: Project Objectives : Budget Actual Expenditu re Socio-economic impact of the project Jobs created Beneficiaries Milestones achieved entity to procure its own equipment and operate effectively. ED 6: Small Children Events ED 7: Enterprise Development (OR Tambo) Employment of an existing kiddies one stop shop edutainment business which hires out jumping castles and organizing kiddies events. Identify and develop entrepreneurs to establish commercially viable projects. R R 0 Job creation, economic development R R 0 Job creation, Development of Local Economic Development The are180 children who benefited from the program named Excellors. To be determined The initiative was reviewed for the established of structured enterprise development centres. ED 8: Agricultural Project ( Merafong) ED 9: Bakery Upgrade ED 10: Building Material Project ED 11: Laundry Services Develop the capacity of cooperative/ project owners to run commercially viable agricultural projects. Relocate and upgrade existing bakery. Establishment of the steel door and window frames manufacturing facility for local procurement purposes. Establishment of the laundry services business in Wedela township. R R 1.6 Million Job creation, poverty alleviation, food security R R 0 Job creation, economic development R 2 Million R0 Job creation, economic development and local business for local supply purposes R R 0 Job creation, economic development See Agricultural project under LED. Info nor availed at time of report writing Info nor availed at time of report writing Beneficiaries could not be located during the preparation of the report. None None The project was not approved. Hence the disbursement was not finalised The money was disbursed. The laundry experience challenges and information could not be sourced during preparation of this report. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 87 of 182

88 Project Name: Project Objectives : Budget Actual Expenditu re Socio-economic impact of the project Jobs created Beneficiaries Milestones achieved ED 12: Enterprise Development New Ventures Local economic base is constraint by a lack of institutional support and procurement links to organised business and bridging finance. R 10 Million pa for 3 years R 0 Job creation, Local Economic Development Project based. See section on Enterprise Development incubation and support. The initiative was reviewed for the establishment of structured enterprise development centres and Masakhisane as a funding vehicle. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 88 of 182

89 SECTION 5: MEASURES TO AMELIORATE THE IMPACT OF DOWNSCALING & RETRENCHMENT 5.1 Background In this section we address: REGULATION 46(d) of the MPRDA requires that the contents of a social and labour plan must include: A process pertaining to management of downscaling and retrenchment which must include: i. The establishment of the future forum; ii. Mechanisms to save jobs and avoid job losses and a decline in employment; iii. Mechanisms to provide alternative solutions and procedures for creating job security where job losses cannot be avoided; and iv. Mechanisms to ameliorate the social and economic impact on individuals, regions and economies where retrenchment or closure of the mine is certain. The legislative basis for the commitments lies in S189 and 189 (A) of the Labour Relations Act, as well as S52 of the Mineral Petroleum Development Act. In consonance with our Social and Labour Plan undertakings, AngloGold Ashanti is committed to adhere to the above legislation as set out in the approved Social and Labour Plan for the period 2010 to Annual progress reports from 201 to 2014 are effected detailing our commitments under the section dealing with Downscaling and Retrenchment. AngloGold Ashanti during the reporting period of 2010 to 2014 faced a number of headwinds occasioned by a variety of factors, including a rise in costs, lower grades, investor sentiments, credit ratings and a fluid labour relations environment, to this extent: Long term sustainability of the company may be at risk if we do not timeously achieve a reduction in costs, such as austerity measures which also include reduction of capital spending. To delay and/or prevent the adverse impact on people a variety of measures to cut labour cost without resorting to forced retrenchments have to be considered. These include (i) natural attrition, (ii) placing an embargo on recruitment and promotions (except of critical and scares skills), (iii) voluntary severance packages, (iv) exit arrangements, and cutting back on the use of consultants, and, reductions in Corporate costs. 5.2 Significant Achievements in the Reporting Period Business conditions varied considerably during the reporting period, with the gold price fluctuating, rising energy costs and the decrease of grade impacting negatively on the Business. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 89 of 182

90 In spite of the above, AngloGold Ashanti managed to avert large scale retrenchment by finding creative solutions in conjunction with Organised Labour. To this end, we made full use of the structures provided for in the SLP: The establishment of a Future Forum: A Future Forum was established in 2012 with the full participation of recognised labour unions; During a particular demanding economic period in 2014, it unfortunately became necessary to announce employer initiated downscaling in the Management ranks. Through our restructuring infrastructure created which feeds into the Future Forum, forced retrenchment was avoided to the extent that only one management employee was retrenched. We have internalised avoidance measures through joint committees with unions at Business Unit and Central level, which allows for improved alignment throughout the Business. Mechanisms to save jobs and avoid job losses and a decline in employment: AngloGold Ashanti embarked on various proactive measures to lower costs. These include amongst others the review of the use of consultants, contractors, the closing of the Potchefstroom Office in favour of the use of company owned accommodations and the allowance for natural attrition. Non critical positions were not filled and the EXCO team was reduced when members left the company. Technical measures were implemented to obtain greater efficiencies in the use of electricity (which is a main cost driver) and optimisation of shaft infrastructure. The creation of alternative employment: AngloGold Ashanti invested hugely in the deployment of mechanical mining techniques. This project makes it possible to safely mine in areas that would not be accessible through conventional mining methods. At the end of 2015, reef drilling created an additional 600 positions, with a current upward employment trend being experienced where reef boring is implemented. It ultimately contributes towards the sustainability of our Business. Gold Mining as an industry is under continuous strain as a result of various factors over which companies have little or no control. We are however resolute in managing those factors within our control and to this end we shall continue to give effect to the letter and spirit of legislative requirements and SLP commitments. Partnering with Organised Labour will feature prominently in our endeavours to secure employment. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 90 of 182

91 SECTION 6: FINANCIAL PROVISION In this section we address: REGULATION 46 (e) of the MPRDA which provides that the contents of a social and labour plan must provide financially for the implementation of the social and labour plan in the following areas: (e) provide financially for the implementation of the social and labour plan in terms of the implementation of- I. The human resource development programme; II. The local economic development programme; and III. The processes to manage downscaling and retrenchment The following budgets and expenditures cover the West Wits Operations and Labour Sending Areas for the purpose of this Closure Report: 6.1 Human Resource Programme: HUMAN RESOURCE DEVELOPMENT PROGRAMME : FINANCIAL PROVISION WEST WITS Year Mining Charter Requirement Social and Labour Plan Actual HRD Spend Variance HRD Financial Provision Actual % Actual HRD Spend % Variance Rand Value Variance 2010 (Actual) 3% R 132,000, % R 133,279, % R 1,279, % R 118,000, % R 126,486, % R 8,486, % R 142,502, % R 165,217, % R 22,715, % R 155,502, % R 193,817, % R 38,315, % R 169,502, % R 185,114, % R 15,611,340 R 717,508,106 R 803,915,516 R 86,407,410 AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 91 of 182

92 6.2 Local Economic Development Programme The following indicates the planned budget vs. the actual expenditure for Local Economic Development (LED) projects, Enterprise Development (ED) projects and Social Institutional Development (SID) projects for the SLP : Budget set at 4% NPAT Actual Variance on Budget LED R58.9m R22.11m R36.79m LS LED R11.4m R6.86m R4.54m ED R30m R3.86m R26.14m SID R15m R14.7m R0.3m LS SID R7.5m R7.15m R0.35m Corporate Office CSI Fund8 R0m R 24.75m R122.8m R79.43m *R68.1m (excluding Corporate CSI spend) The following is a brief outline of the variance: Project Year to date 31 March 2016 Budget Actual Variance 1. Agricultural project: This is a section 102 project running for a period of 3 years project ending up in 2018 R8.0m R1.6m R6.4m 2. EDC: This is a section 102 project running for a period of 3 years project ending up in 2018 R15.0m R0.04m R14.96m 3. Urban Planning & Formalisation of Non-Urban AGA Land and Property Holdings: This is a section 102 project running for a period of 3 years project ending up in 2018 R7.0m R0.62m R6.38m 4. Merafong Youth Business Hubs: Project delivered and handed over in R1.2m R1.5m R0m 5. Lutshaya Community Centre: This is a section 102 project running for a period of 3 years project ending up in 2018 R5.5m R1.1m R4.4m 6. Masakhisane: The initiative was reviewed for the establishment of structured EDC'S and Masakhisane as a funding vehicle. R30.0m R3.86m R26.14m 7. Contingency Fund e.g Merafong Community Park and the Kokosi Community portion that the Municipality was unable today for was paid from this fund, which also deals the shortfalls R10.12m R68.1m (excluding Corporate CSI spend) R66.7m R8.72m R68.1m AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 92 of 182

93 6.3 Downscaling and Retrenchment The company provides for the management of downscaling and retrenchment in terms of its Business plan process. The Labour Relations Act s process and requirements will precede any downscaling that may lead to retrenchments. Over a period of time, the Company has improved severance pay, through negotiations concluded under the auspices of the Chamber of Mines. The minimum severance pay in the event of retrenchment will for example increase from a minimum of R20 000, to a minimum of R in a phased approach agreed to in terms of the agreement. The aforementioned is in excess of the statutory requirement in terms of the Basic Conditions of Employment Act. The company provides for the following minimum conditions when contemplating downscaling: An ex-gratia payment equivalent to one month s basic pay. 50% of the retrenchee s monthly basic pay for every completed year of continuous service, or the minimum amount as stated above. Unions may in addition negotiate severance pay at company level while engaging companies in terms of S 189 of the Labour Relations Act, provided that the existing practice of two weeks basic pay per year of service will not be reduced. We however, again wish to reiterate that the company initiated retrenchments is viewed as a last resort in managing Downscaling. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 93 of 182

94 SECTION 7: REPORTING (MONITORING AND EVALUATION) In this section we address the Mining charter requirements and MPRDA as detailed below. Mining Charter Requirement: In terms of Reporting (Monitoring and Evaluation) the amended BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH MINING AND MINERALS INDUSTRY states: Every mining company must report its level of compliance with the Mining Charter annually, as provided for by Section 28(2)(c) of the MPRDA. The Department shall monitor and evaluate, taking into account the impact of material constraints which may result in not achieving set targets. The Mining Charter Scorecard requirements are indicated below along with the West Wits Operations achievements for the period : SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWEREMENT CHARTER FOR THE SOUTH MINING INDUSTRY - WEST WITS OPERATIONS 2014 No ELEMENT DESCRIPTION MEASURE COMPLIANCE TARGET BY 2014 PROGRESS ACHIEVED BY MC Acieved MC Achieved MC Achieved MC Achieved MC Plan 1 Reporting Has the company reported the level of compliance with the Charter for the Calendar year Documentary proof of receipt from the department Annually- 31 March March 2011 Submitted 31 March 2011 March 2012 Submitted 31 March 2012 March 2013 Submitted 28 March 2013 March 2014 Submitted 28 March 2014 March 2015 March 2015 The dates of submission to the DMR of other SLP documents are as follows: DOCUMENT Social and Labour Plan DATES SLP Submissions Original: 31 August 2010 Revision 1: 19 October 2011 Approved: 16 October 2012 Section 102 Submissions 11 December 2013 LED and ED projects 9 April 2014 HRD 19 April 2014 LED Ministerial approval: 15 September 2014 Amendment SLP Implementation Submission Plans Submissions 30 September March 2011: September 2012: 2012 Feedback report 6 December 2013: 2013 Feedback Report SLP Submissions Original 31 October 2014 Provisional approval: 19 December 2014 AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 94 of 182

95 SECTION 8: SUSTAINABLE DEVELOPMENT AND GROWTH In this section we address the Mining Charter requirements and MPRDA as detailed below. Mining Charter Requirement: In terms of Sustainable Growth and Development the amended BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH MINING AND MINERALS INDUSTRY states: Mineral resources are non-renewable in nature, forthwith exploitation of such resources must emphasise the importance of balancing concomitant economic benefits with social and environmental needs without compromising future generations, in line with Constitutional provisions for ecological, sustainable development and use of natural resources. To this end, every mining company must implement elements of sustainable development commitments included in the Stakeholders Declaration on Strategy for the sustainable growth and meaningful transformation of South Africa s Mining Industry of 30 June 2010 and in compliance with all relevant legislation, as follows: Improvement of the industry s environmental management by: o Implementing environmental management systems that focus on continuous improvement to review, prevent, mitigate adverse environmental impact; o Undertake continuous rehabilitation on land disturbed or occupied by mining operations in accordance with appropriate regulatory commitments; o Provide for the save storage and disposal of residual waste and process residues; o Design and plan all operations so that adequate resources are available to meet the closure requirements of all operations. Improvement of the industry s health and safety performance by: o Implementing a management systems focused on continuous improvement of all aspects of operations that have a significant impact on the health and safety of employees, contractors and communities where mining takes place; o Providing all employees with health and safety training and require employees of contractors to have undergone such training; o Implement regular health surveillance and risk-based monitoring of employees. Stakeholders undertake to enhance the capacity and skills in relevant South African research and development facilities in order to ensure quality, quick turnaround, cost effectiveness and integrity of such facilities. To this extent, mining companies are required to utilise South African based facilities for the analysis of samples across the mining value chain. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 95 of 182

96 The company s achievements against the Mining Charter scorecard achievements as at end December 2014 are as follows: SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWEREMENT CHARTER FOR THE SOUTH MINING INDUSTRY - WEST WITS OPERATIONS AS AT 31 DECEMBER 2014 No. ELEMENT DESCRIPTION MEASURE COMPLIANCE TARGET BY 2014 PROGRESS ACHIEVED BY 31 DECEMBER Sustainable Development & Growth Improvement of the industry's environmental management. Captured in company EMP which is submitted to DMR Improvement of the industry's mine health and safety performance. Utilisation of South African based research facilities for analysis of samples across the mining value chain Implementation of approved EMPs. Implementation of tripartite action plan on health and safety. Percentage of samples in South African facilities 100% 100% 100% 95.4% 100% 100% 8.1 Environmental Management Compliance Report AngloGold Ashanti received approval of its revised Environmental Management Programme (EMP) in AGA conducted an internal Environmental Performance Assessment during the 4th Quarter 2011 to serve as a baseline for compliance to the EMP. Environmental performance assessments will be conducted on a two-yearly basis from the date of EMP approval. The latest performance assessment was submitted to the DMR in Closure liability assessments are updated (annually) and the closure trust fund, with bank guarantees fully providing for premature closure. AGA SA Region's environmental management strategy remains focussed on Integrated Water Management, Closure Planning, Waste Management and Knowledge Management, Legal Compliance, and the alignment of the environmental management programme with AngloGold Ashanti business management processes and overall sustainable development objectives: AGA SA Region Surface Operations have retained ISO14001 certification since External legal compliance audits are conducted (2-yearly), supplemented by specific internal compliance assessments on key environmental authorisations such as water use licences, waste authorisations, certificates of registration, etc. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 96 of 182

97 8.2 Health and Safety Compliance Report (Sect 7 in Mining Charter Reporting Template) Measure Achievements against Targets Implementation of culture transformation framework NA 65% vs 50% 65% vs 75% 75% vs 100% Percentage of employees embarking on OHS representative training NA 11.9% vs 4% 4.4% vs 6% 8.41% vs 8% Percentage of leading practices from MOSH Learning Hub investigated for implementation NA 100% vs 100% 100% vs 100% 100% vs 100% Percentage of research findings from MHSC investigated for implementation NA 100% vs 100% 100% vs 100% 100% vs 100% Health: Percentage of mandatory occupational health reports submitted NA 100% vs 100% 100% vs 100% 100% vs 100% Health: Adherence to HIV/AIDS and TB guidelines NA Yes Yes Yes Although Leading Indicator incentive system is in place for senior management, it cannot be claimed to be in place for all levels in the organization as yet. It is important to match incentives with Safety Maturity, and this may not be appropriate for some time to come. An in depth analysis of the SA Region bonus landscape will be undertaken during 2016 OHS Representative training definitions changed in 2013 AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 97 of 182

98 SECTION 9: BENEFICIATION 9.1 Beneficiation in South Africa AngloGold Ashanti is the world s third largest gold producer, with 17 operations in 9 countries and is domiciled in South Africa. In all the countries in which we operate, governments are focusing on value-adding activities that benefit the local economies, either by increasing revenue or up-skilling their people. For AngloGold Ashanti beneficiation is an integral part of the company s vision. In the past the company focused primarily on product beneficiation which included investment in downstream jewellery manufacturing as well as creating and promoting platforms for jewellery design. While this was a novel approach when first conceived in 1999, the current social landscape requires a more inclusive approach to beneficiation. As such, AngloGold Ashanti has embarked on a journey to reposition its approach to beneficiation to explore both upstream and downstream opportunities in the gold value chain. From a product perspective, although AngloGold Ashanti resigned as a member of the World Gold Council in 2014, our involvement was instrumental in initiatives that are aimed at supporting the gold market beyond South Africa. We also continue to conform to the Conflict-Free Gold Standard. 9.2 Beneficiation initiatives in South Africa AngloGold Ashanti has, over the past decade, committed itself to support the beneficiation of gold. This has included the provision of structural support to assist the growth and development of downstream industries Rand Refinery AngloGold holds a 42.41% interest in Rand Refinery (Pty) Limited, a key player in the beneficiation/value-added chain in South Africa and on the African continent. Rand Refinery was established in 1920 and is certified by the London Bullion Market Association. This means it complies with the highest standards required by bullion banks, commodity traders and coin distributors. The Refinery goes beyond just refining doré; it produces gold cast bars, minted bars, semi-finished product, coins and certified gold. These products are available to the South African and the global market. AngloGold Ashanti s investment in terms of time and resources in the Refinery places South Africa in a competitive position, opening up various beneficiation opportunities. See for more information. AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 98 of 182

99 ANNEXURES ANNEXURES ANNEXURE 1.1: BREAKDOWN OF EMPLOYEES PER SENDING AREA Country Province District TEBA Office Desc Contractors MET MIN MPO SAR SAV TAU AGAH AUSTRALIA AUSTRALIA TOM WEST WITS BOTSWANA BOTSWANA CNTRL MOLEPOLOLE PALAPYE BOTSWANA S.E. MOLEPOLOLE KWENENG MOLEPOLOLE MOCHUDI MOLEPOLOLE NGWAKETSE MOLEPOLOLE PALAPYE RAMOTSWA MOLEPOLOLE NGWAKETSE MOLEPOLOLE LESOTHO BUTHA BUTHE BUTHA BUTHE LERIBE MASERU LERIBE BUTHA BUTHE LERIBE MASERU MOKHOTLONG TEYATEYANENG MAFETENG MAFETENG MASERU MOHALESHOEK QUTHING MASERU MAFETENG MASERU QACHAS NEK TEYATEYANENG MOHALESHOEK MAFETENG MASERU MOHALESHOEK MOKHOTLONG LERIBE MASERU MOKHOTLONG QACHASNEK MAFETENG MASERU MOHALESHOEK QACHAS NEK QUTHING MAFETENG MASERU MOHALESHOEK QUTHING TEYATEYANENG LERIBE MASERU TEYATEYANENG THABA TSEKA MASERU LERIBE MASERU AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 99 of 182 Contractor Mine employee COR DIV MET MPO NUF SAO SAR SAV TAU AGAH Mine employee Grand

100 ANNEXURE 1.1: BREAKDOWN OF EMPLOYEES PER SENDING AREA cont. Country MOZAMBIQUE SOUTH AFRICA Province EASTERN CAPE District TEBA Office Desc Contractors MET MIN MPO SAR SAV TAU AGAH Contractor Mine employee BILENE RESSANO GARCIA BOANE RESSANO GARCIA CANICADO RESSANO GARCIA CHIBUTO RESSANO GARCIA CHICUALACUALA RESSANO GARCIA FUNHALOURO RESSANO GARCIA GOVURO RESSANO GARCIA HOMOINE RESSANO GARCIA INHAMBANE RESSANO GARCIA INHARRIME RESSANO GARCIA JANGAMO RESSANO GARCIA LIMPOPO RESSANO GARCIA MABALANE RESSANO GARCIA MABOTE RESSANO GARCIA MAGUDE RESSANO GARCIA MANHICA RESSANO GARCIA MANJACAZE RESSANO GARCIA MAPUTO RESSANO GARCIA MARRACUENE RESSANO GARCIA MASSINGA RESSANO GARCIA MATOLA RESSANO GARCIA MAXIXE RESSANO GARCIA MORRUMBENE RESSANO GARCIA MUCHOPES RESSANO GARCIA NAMAACHA RESSANO GARCIA NORTH OF SAVE RIVERESSANO GARCIA PANDA RESSANO GARCIA VILANCULOS RESSANO GARCIA XAI-XAI RESSANO GARCIA ZAVALA RESSANO GARCIA XAI-XAI RESSANO GARCIA ADELAIDE TOM WEST WITS ALICE TOM WEST WITS ALIWAL NORTH TOM WEST WITS BIZANA BIZANA CARLETONVILLE DEPOT FLAGSTAFF KLERKSDORP TOM WEST WITS BURGHERSDORP TOM WEST WITS CALA KLERKSDORP TOM WEST WITS CATHCART TOM WEST WITS COFIMVABA KLERKSDORP TOM WEST WITS CRADOCK TOM WEST WITS DORDRECHT TOM WEST WITS EAST LONDON TOM WEST WITS ELLIOT TOM WEST WITS ELLIOTDALE MTHATHA TOM WEST WITS ENGCOBO KLERKSDORP NGCOBO TOM WEST WITS COR DIV MET MPO NUF SAO SAR SAV TAU AGAH Mine employee Grand AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 100 of 182

101 ANNEXURE 1.1: BREAKDOWN OF EMPLOYEES PER SENDING AREA cont. Country SOUTH AFRICA Province EASTERN CAPE District TEBA Office Desc Contractors MET MIN MPO SAR SAV TAU AGAH FLAGSTAFF FLAGSTAFF KLERKSDORP TOM WEST WITS FORT BEAUFORT TOM WEST WITS GCUWA TOM WEST WITS GRAHAMSTOWN TOM WEST WITS HERSCHEL KLERKSDORP STERKSPRUIT TOM WEST WITS HIGHFLATS TOM WEST WITS HOFMEYR TOM WEST WITS IDUTYWA BUTTERWORTH KLERKSDORP TOM WEST WITS INDWE TOM WEST WITS KEISKAMAHOEK TOM WEST WITS KENTANI BUTTERWORTH KLERKSDORP TOM WEST WITS KING WILLIAMS TOWNCARLETONVILLE DEPOT KLERKSDORP TOM WEST WITS LADY FRERE QUEENSTOWN TOM WEST WITS LADY GREY TOM WEST WITS LIBODE KLERKSDORP MOUNT FRERE MTHATHA TOM WEST WITS LUSIKISIKI FLAGSTAFF KLERKSDORP LUSIKISIKI TOM WEST WITS MACLEAR TOM WEST WITS MATATIELE CARLETONVILLE DEPOT KLERKSDORP MATATIELE TOM WEST WITS MIDDELBURG - CAPE TOM WEST WITS MIDDLEDRIFT KINGWILLIAMSTOWN TOM WEST WITS MOUNT AYLIFF TOM WEST WITS MOUNT FLETCHER TOM WEST WITS MOUNT FRERE KLERKSDORP MOUNT FRERE TOM WEST WITS MQANDULI KLERKSDORP MTHATHA TOM WEST WITS MTHATHA KLERKSDORP MTHATHA TOM WEST WITS NGQELENI KLERKSDORP MTHATHA TOM WEST WITS NQAMAKWE BUTTERWORTH DUTYWA TOM WEST WITS AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 101 of 182 Contractor Mine employee COR DIV MET MPO NUF SAO SAR SAV TAU AGAH Mine employee Grand

102 ANNEXURE 1.1: BREAKDOWN OF EMPLOYEES PER SENDING AREA cont. Country SOUTH AFRICA SOUTH AFRICA Province EASTERN CAPE FREE STATE District TEBA Office Desc Contractors MET MIN MPO SAR SAV TAU AGAH Contractor Mine employee PEDDIE TOM WEST WITS PORT ELIZABETH TOM WEST WITS PORT ST JOHNS TOM WEST WITS QUEENSTOWN TOM WEST WITS QUMBU CARLETONVILLE DEPOT MOUNT FRERE TOM WEST WITS STERKSTROOM TOM WEST WITS STEYNSBURG TOM WEST WITS STUTTERHEIM TOM WEST WITS TABANKULU KLERKSDORP MOUNT FRERE TABANKULU TOM WEST WITS TSOLO KLERKSDORP MTHATHA TOM WEST WITS TSOMO KLERKSDORP TOM WEST WITS UGIE TOM WEST WITS WHITTLESEA TOM WEST WITS WILLOWVALE KLERKSDORP TOM WEST WITS BETHLEHEM TOM WEST WITS BLOEMFONTEIN KLERKSDORP TOM WEST WITS BOTHAVILLE TOM WEST WITS BRANDFORT TOM WEST WITS BULTFONTEIN TOM WEST WITS CLOCOLAN TOM WEST WITS DEWETSDORP TOM WEST WITS EDENVILLE TOM WEST WITS EXCELSIOR TOM WEST WITS FICKSBURG CARLETONVILLE DEPOT TOM WEST WITS FOURIESBURG TOM WEST WITS HARRISMITH TOM WEST WITS HEILBRON TOM WEST WITS HENNENMAN TOM WEST WITS HERTZOGVILLE TOM WEST WITS HOBHOUSE TOM WEST WITS HOOPSTAD TOM WEST WITS KROONSTAD KLERKSDORP TOM WEST WITS LADYBRAND TOM WEST WITS LINDLEY TOM WEST WITS MARQUARD TOM WEST WITS ODENDAALSRUS TOM WEST WITS PARYS TOM WEST WITS PAUL ROUX TOM WEST WITS PETRUS STEYN TOM WEST WITS PETRUSBURG TOM WEST WITS REITZ TOM WEST WITS ROUXVILLE TOM WEST WITS COR DIV MET MPO NUF SAO SAR SAV TAU AGAH Mine employee Grand AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 102 of 182

103 ANNEXURE 1.1: BREAKDOWN OF EMPLOYEES PER SENDING AREA cont. Country SOUTH AFRICA SOUTH AFRICA Province FREE STATE GAUTENG District TEBA Office Desc Contractors MET MIN MPO SAR SAV TAU AGAH Contractor Mine employee SENEKAL TOM WEST WITS SPRINGFONTEIN TOM WEST WITS STEYNSRUST TOM WEST WITS THABA NCHU TOM WEST WITS THEUNISSEN TOM WEST WITS VENTERSBURG TOM WEST WITS VILJOENSKROON KLERKSDORP TOM WEST WITS VIRGINIA TOM WEST WITS VREDEFORT KLERKSDORP TOM WEST WITS WELKOM KLERKSDORP TOM WEST WITS WEPENER TOM WEST WITS WESSELBRON KLERKSDORP TOM WEST WITS WINBURG TOM WEST WITS WITZIESHOEK KLERKSDORP TOM WEST WITS ZASTRON TOM WEST WITS ALBERTON TOM WEST WITS BENONI TOM WEST WITS BOKSBURG TOM WEST WITS BRAKPAN TOM WEST WITS BRONKHORSTSPRUIT TOM WEST WITS CARLETONVILLE CARLETONVILLE DEPOT KLERKSDORP TOM WEST WITS EVATON TOM WEST WITS GERMISTON TOM WEST WITS HAMMANSKRAAL TOM WEST WITS HEIDELBERG - TVL TOM WEST WITS JOHANNESBURG KLERKSDORP TOM WEST WITS KAGISO KLERKSDORP TOM WEST WITS KEMPTON PARK TOM WEST WITS KRUGERSDORP TOM WEST WITS MOHLAKENG TOM WEST WITS NIGEL TOM WEST WITS PRETORIA KLERKSDORP TOM WEST WITS RANDFONTEIN KLERKSDORP TOM WEST WITS ROODEPOORT TOM WEST WITS SEBOKENG TOM WEST WITS SPRINGS KLERKSDORP TOM WEST WITS VANDERBIJLPARK TOM WEST WITS VEREENIGING TOM WEST WITS WESTONARIA KLERKSDORP TOM WEST WITS COR DIV MET MPO NUF SAO SAR SAV TAU AGAH Mine employee Grand AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 103 of 182

104 ANNEXURE 1.1: BREAKDOWN OF EMPLOYEES PER SENDING AREA cont. Country SOUTH AFRICA Province KWAZULU NATAL District TEBA Office Desc Contractors MET MIN MPO SAR SAV TAU AGAH Mine employee BERGVILLE TOM WEST WITS DUNDEE TOM WEST WITS DURBAN KLERKSDORP TOM WEST WITS EMPANGENI KLERKSDORP TOM WEST WITS EMZUMBI TOM WEST WITS ESHOWE TOM WEST WITS ESTCOURT TOM WEST WITS GRABOUW TOM WEST WITS GREYTOWN TOM WEST WITS HARDING TOM WEST WITS HLABISA TOM WEST WITS HLUHLUWE TOM WEST WITS HOWICK TOM WEST WITS INGWAVUMA CARLETONVILLE DEPOT TOM WEST WITS IXOPO TOM WEST WITS IZINGOLWENI TOM WEST WITS KOKSTAD TOM WEST WITS KRANSKOP TOM WEST WITS KWANGWANASE TOM WEST WITS LADYSMITH - NATAL TOM WEST WITS MAHLABATINI TOM WEST WITS ULUNDI RECRUITING MELMOTH TOM WEST WITS MKUZE TOM WEST WITS MTUBATUBA TOM WEST WITS MTUNZINI TOM WEST WITS NEWCASTLE KLERKSDORP TOM WEST WITS NGOTSHE TOM WEST WITS NKANDHLA TOM WEST WITS NONGOMA KLERKSDORP NONGOMA TOM WEST WITS NQUTU TOM WEST WITS ONGOYE TOM WEST WITS PAULPIETERSBURG TOM WEST WITS PIETERMARITZBURG TOM WEST WITS PINETOWN TOM WEST WITS PONGOLA TOM WEST WITS PORT SHEPSTONE TOM WEST WITS STANGER TOM WEST WITS TUGELA FERRY TOM WEST WITS UBOMBO TOM WEST WITS UMBUMBULU TOM WEST WITS UMLAZI TOM WEST WITS UMZIMKULU HARDING KLERKSDORP TOM WEST WITS UMZIMKULU UMZINTO TOM WEST WITS UTRECHT TOM WEST WITS VERULAM TOM WEST WITS VRYHEID TOM WEST WITS AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 104 of 182 Contractor COR DIV MET MPO NUF SAO SAR SAV TAU AGAH Mine employee Grand

105 ANNEXURE 1.1: BREAKDOWN OF EMPLOYEES PER SENDING AREA cont. Country SOUTH AFRICA SOUTH AFRICA Province District TEBA Office Desc Contractors MET MIN MPO SAR SAV TAU AGAH Contractor Mine employee LIMPOPO BOCHUM TOM WEST WITS BOLOBEDU TOM WEST WITS BUSHBUCKRIDGE BUSHBUCKRIDGE KLERKSDORP TOM WEST WITS DRIEKOP TOM WEST WITS GIYANI GIYANI TOM WEST WITS LOUIS TRICHARDT TOM WEST WITS MALAMULELE TOM WEST WITS MESSINA TOM WEST WITS MHALA TOM WEST WITS MOKERONG TOM WEST WITS MUTALE TOM WEST WITS PHALABORWA TOM WEST WITS PIETERSBURG TOM WEST WITS POLOKWANE KLERKSDORP TOM WEST WITS POTGIETERSRUS TOM WEST WITS RITAVI TOM WEST WITS SEKHUKHUNE TOM WEST WITS SESHEGO TOM WEST WITS SIBASA KLERKSDORP TOM WEST WITS SOEKMEKAAR TOM WEST WITS THABAMOOPO TOM WEST WITS THABAZIMBI TOM WEST WITS TZANEEN TOM WEST WITS VUWANI TOM WEST WITS MPUMALANGA BARBERTON TOM WEST WITS BELFAST TOM WEST WITS BETHAL TOM WEST WITS CAROLINA TOM WEST WITS DELMAS TOM WEST WITS ERMELO TOM WEST WITS EVANDER TOM WEST WITS GROBLERSDAL KLERKSDORP TOM WEST WITS KOMATIPOORT TOM WEST WITS LYDENBURG TOM WEST WITS MIDDLEBURG - TVL TOM WEST WITS NELSPRUIT KLERKSDORP MALELANE TOM WEST WITS PIET RETIEF TOM WEST WITS STANDERTON TOM WEST WITS WHITE RIVER TOM WEST WITS WITBANK TOM WEST WITS COR DIV MET MPO NUF SAO SAR SAV TAU AGAH Mine employee Grand AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 105 of 182

106 ANNEXURE 1.1: BREAKDOWN OF EMPLOYEES PER SENDING AREA cont. Country SOUTH AFRICA SOUTH AFRICA SOUTH AFRICA Province NORTH WEST NORTHERN CAPE WESTERN CAPE District TEBA Office Desc Contractors MET MIN MPO SAR SAV TAU AGAH Contractor Mine employee BLOEMHOF KLERKSDORP TOM WEST WITS BOITEKONG TOM WEST WITS BRITS TOM WEST WITS CHRISTIANA TOM WEST WITS DELAREYVILLE TOM WEST WITS DITSOBOTLA TOM WEST WITS GANYESA TOM WEST WITS KLERKSDORP KLERKSDORP TOM WEST WITS LICHTENBURG TOM WEST WITS MADIKWE TOM WEST WITS MAHIKENG CARLETONVILLE DEPOT KLERKSDORP TOM WEST WITS MOLOPO TOM WEST WITS PILANESBERG TOM WEST WITS POTCHEFSTROOM KLERKSDORP TOM WEST WITS RUSTENBURG TOM WEST WITS SCHWEIZER RENEKE KLERKSDORP TOM WEST WITS TAUNG KLERKSDORP TOM WEST WITS VENTERSDORP TOM WEST WITS VRYBURG TOM WEST WITS WOLMARANSTAD KLERKSDORP TOM WEST WITS ZEERUST KLERKSDORP TOM WEST WITS HARTSWATER TOM WEST WITS KIMBERLEY KLERKSDORP TOM WEST WITS KURUMAN KLERKSDORP TOM WEST WITS PRIESKA TOM WEST WITS UPINGTON TOM WEST WITS WARRENTON TOM WEST WITS CAPE PENINSULA TOM WEST WITS HEIDELBERG - CAPE TOM WEST WITS COR DIV MET MPO NUF SAO SAR SAV TAU AGAH Mine employee Grand AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 106 of 182

107 ANNEXURE 1.1: BREAKDOWN OF EMPLOYEES PER SENDING AREA cont. Country SWAZILAND ZIMBABWE Grand Province District TEBA Office Desc Contractors MET MIN MPO SAR SAV TAU AGAH Contractor Mine employee HLATIKULU MANZINI MBABANE NHLANGANO MANKAYANE MANZINI MBABANE NHLANGANO MANZINI MANZINI MBABANE NHLANGANO MBABANE MANZINI MBABANE NHLANGANO NHLANGANO MANZINI MBABANE NHLANGANO PIGGS PEAK MANZINI MBABANE SITEKI MANZINI MBABANE NHLANGANO NHLANGANO BULAWAYO TOM WEST WITS CHIRUMHANZU TOM WEST WITS HARARE TOM WEST WITS MARONDERA TOM WEST WITS NKAYI TOM WEST WITS OTHER TOM WEST WITS COR DIV MET MPO NUF SAO SAR SAV TAU AGAH Mine employee Grand AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 107 of 182

108 ANNEXURE 1.2: LOCALITY MAP OF SOUTH AFRICA REGION WEST WITS OPERATIONS AngloGold Ashanti Social and Labour Plan Closure Report - West Wits Operations Page 108 of 182